Which of the following pertain to the fiscal system?

  1. Direct and Indirect Taxes
  2. Disinvestment proceeds
  3. Government borrowing from market
  4. Subsidy and other transfer payments

Select the correct option from the codes given below:

Answer: [D] 1, 2, 3 & 4

Fiscal policy refers to policy aimed at managing government earning via taxes, fees, user charges of government expenditure via subsidy etc. Fiscal system deals not only with the quantity but the quality of public finance as well. In other words, not merely how much is raised and spent but how has it been raised in the form of Taxes and within that indirect and direct taxes; Disinvestment proceeds; Borrowing from market. Kindly note that fiscal policy is formulated by Finance Ministry.

This question is a part of GKToday's Integrated IAS General Studies Module