Question

Q30. “Fiscal policy reforms in India have had a negative impact on developmental and welfare
expenditure”. Defend or refute the given statement along with valid reasons.​

Answer 1

Fiscal policy reforms in India had a mixed impact.

• In underdeveloped countries, fiscal policy plays a fundamental role by producing investment component and also controlling the inflation rates.
• It has helped India as -

1. Fiscal policy plays a key role in escalating the capital accumulation rate in both the public and private sectors.
2. Via taxation, the policy leads to the mobilisation of a significant proportion of capital to fund its various programs.
3. It offers the private sector ample incentives to increase its operations.
4. It further aimed to minimise the disparity in income and wealth dispersal. The policy also aimed to raise the savings rate by offering stimulus.

• In the Indian economy, it played a crucial role. Because of the usefulness of resources in the optimum approach, the disparity reduction, value use of in correct distribution were carried out to balance growth.

• Further, the provision of commercial business incentives to the non-public sector and public sector industries fixing in various geographical areas, the government was able to balance the country's growth

Answer 2

Answer:

Explanation: in underdeveloped countries , fiscal policy plays an fundamental role by producing investment components and also controlling inflation rates in India economy , it played a crucial role because of the usefulness of resources in the optimum value use of in correct distribution were carried out to balance growth .