Question :  The process of collecting taxes in order to fund government expenditures is known as:

Option 1: Fiscal policy

Option 2: Monetary policy

Option 3: Budgetary policy

 

Option 4: Taxation policy


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Taxation policy


Solution : The correct answer is (d) Taxation policy.

Taxation policy refers to the process of collecting taxes from individuals, businesses, and other entities to generate revenue for the government. It involves setting tax rates, determining tax bases, and implementing tax laws and regulations. Taxation policy is an essential component of fiscal policy, which encompasses the government's use of taxation and government spending to influence the economy. By collecting taxes, the government funds its various expenditures, including public services, infrastructure development, defense, healthcare, education, and social welfare programs.

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