10.3 Role of Fiscal Policy in Economic Development:

10.3  Role of Fiscal Policy in Economic Development:

One of the important goals of fiscal policy formulated by the Government of India is to attain rapid economic development of the country.

To attain such economic development in the country, the fiscal policy of the country has adopted following two objectives:

1. To raise the rate of productive investment of both public and private sector of the country.

2. To enhance the marginal and average rates of savings for mobilising adequate financial resources for making .investment in public and private sectors of the economy.

The fiscal policy of the country is trying to attain both these two objectives during the plan periods.