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'Explain 'fiscal reforms' and 'monetary reforms' as per economic change initiated by the Government of India since 1991

'Explain 'fiscal reforms' and 'monetary reforms' as per economic change initiated by the Government of India since 1991.

Answer:

(i) Fiscal Reforms

• Measures have been taken to bring down the fiscal deficit.

• Tax reforms have been initiated to increase revenue and tax compliance

• Reduction in direct and indirect taxes.

• Decrease in subsidies.

(ii) Monetary Reforms

•Phased reduction of statutory liquidity ratio (SLR).

•Private sector banks allowed to set up new branches.

•Banks have now been allowed to access the capital market for raising capital.

•Permission for disinvestment (up to 49% of total equity).


'Explain 'fiscal reforms' and 'monetary reforms' as per economic change initiated by the Government of India since 1991


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