The correct answer is: Balancing revenue and expenditure.
Fiscal prudence is the practice of managing a government’s finances in a responsible and sustainable way. It involves balancing revenue and expenditure, avoiding excessive borrowing, and focusing on essential expenditures.
Bihar government aims to achieve fiscal prudence by balancing revenue and expenditure. This means that the government should collect as much revenue as it spends, or at least close the gap as much as possible. This can be done by increasing taxes, reducing spending, or both.
Excessive spending and borrowing can lead to a government’s debt becoming unsustainable. This can have a number of negative consequences, such as higher interest rates, inflation, and a decrease in economic growth.
Avoiding any economic planning can also lead to fiscal problems. Without a plan, the government may not be able to effectively allocate its resources and may end up spending more money than it needs to.
Focusing on non-essential expenditures can also lead to fiscal problems. The government should focus on spending money on essential services, such as education, healthcare, and infrastructure. Spending money on non-essential services, such as entertainment and travel, can lead to a budget deficit.
In conclusion, the Bihar government aims to achieve fiscal prudence by balancing revenue and expenditure. This is the most responsible and sustainable way to manage a government’s finances.