Which of the following is not the main objective of ‘Fiscal Policy of India’?

To increase liquidity in economy
To promote price stability
To minimise the inequality in income and wealth
To promote employment opportunities

The correct answer is A. To increase liquidity in economy.

Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The main objectives of fiscal policy are to promote economic growth, to stabilize the economy, and to redistribute income.

Option A is not a main objective of fiscal policy because it is not directly related to economic growth, stabilization, or redistribution. Increasing liquidity in the economy can help to stimulate economic growth, but it is not a primary objective of fiscal policy.

Option B is a main objective of fiscal policy because it is related to economic stability. Price stability is important for economic growth because it encourages businesses to invest and consumers to spend.

Option C is a main objective of fiscal policy because it is related to income redistribution. Income inequality can lead to social unrest and economic instability. Fiscal policy can be used to reduce income inequality by providing tax breaks to low-income earners and by investing in public goods that benefit everyone, such as education and infrastructure.

Option D is a main objective of fiscal policy because it is related to economic growth. Employment opportunities are important for economic growth because they provide people with the means to buy goods and services.