In India, which one among the following formulates .the fiscal policy ?

Planning Commission
Finance Commission
Ministry Commission
Reserve Bank of India

The correct answer is (b) Finance Commission.

The Finance Commission is a constitutional body that is constituted every five years to review the financial relations between the Centre and the States. It is responsible for making recommendations on matters relating to the distribution of revenues between the Centre and the States, the grants-in-aid to the States, and the measures to augment the Consolidated Fund of India.

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

The Ministry of Finance is the ministry of the Government of India that is responsible for the formulation and implementation of the country’s fiscal policy. It is also responsible for the management of the country’s finances, including the collection of taxes and the expenditure of government funds.

The Reserve Bank of India is the central bank of India. It is responsible for the formulation and implementation of the country’s monetary policy, as well as for the regulation and supervision of the country’s financial system.