Fiscal Policy Tools — Mains Questions

Critically analyze the evolution of India's fiscal policy tools post-1991 economic reforms, with a special focus on the role of taxation and government expenditure in achieving macroeconomic stability and inclusive growth. (250 words, 15 marks)

The Fiscal Responsibility and Budget Management (FRBM) Act has been instrumental in shaping India's fiscal policy. Discuss its key provisions and evaluate its effectiveness in ensuring fiscal discipline, particularly in the context of recent economic shocks. (250 words, 15 marks)

Examine the role of government expenditure, particularly capital expenditure, as a fiscal policy tool for driving economic growth and employment generation in India. Provide concrete examples from recent budgets. (250 words, 15 marks)