Which one of the following is not an element of fiscal reforms?
a) Taxation reforms
b) Change in interest rate
c) Public expenditure
d) Control on public debt
Answers
Answered by
9
Answer:
- The four main components of fiscal policy are (i) expenditure, budget reform (ii) revenue (particularly tax revenue) mobilization, (iii) deficit containment/ financing and (iv) determining fiscal transfers from higher to lower levels of government.
Answered by
3
Answer:
b) change in interest rate
Explanation:
Changing interest rate is not an element of Fiscal reforms. This is because, with liberalisation, the role of RBI has changed from a controller to a mere facilitator of the operations of the financial sector. As a facilitator, RBI can fix interest rate on his own for commercial banks. So, changing interest rate comes under the Financial Sector Reforms and not Fiscal Reforms.
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