Question

The main objective of Fiscal Policy in developing countries is to -
(1) Promote economic growth
(2) Mobilise resources for economic growth
(3) Ensure economic growth and distribution
(4) Increase employment opportunities

• A. Only 1 and 2 are correct
• B. Only 2 and 3 are correct
• C. Only 2 and 4 are correct
• D. 1, 2, 3 and 4 are correct

Answer 1

The correct option is D 1, 2, 3 and 4 are correct

For the developing countries the main purpose of the fiscal policy is to quicken the rate of capital formation and investments for the pure purpose of development and growth.
Whereas in developed countries, the main objective of the fiscal policy is to maintain stability.
The objective of fiscal policy is to maintain the condition of full employment, economic stability and to stabilise the rate of growth.