In India, which one among the following formulates the fiscal policy? A. Planning Commission B. Ministry of Finance C. Finance Commission D. The Reserve Bank of India

Planning Commission
Ministry of Finance
Finance Commission
The Reserve Bank of India

The correct answer is: B. Ministry of Finance

The Ministry of Finance is the nodal agency for formulating and implementing the fiscal policy of the Government of India. It is responsible for the management of the country’s finances, including revenue collection, expenditure, and debt management. The Ministry also advises the Government on economic policy matters.

The Planning Commission was a body set up by the Government of India in 1950 to formulate and implement the country’s economic development plans. It was abolished in 2014 and its functions were transferred to the National Institution for Transforming India (NITI Aayog).

The Finance Commission is a constitutional body set up every five years to recommend to the President of India the principles on which the distribution of taxes between the Centre and the States should be made. It also recommends the grants-in-aid to be given by the Centre to the States.

The Reserve Bank of India is the central bank of India. It is responsible for the formulation and implementation of monetary policy, the management of the country’s foreign exchange reserves, and the regulation of the banking system.