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    Question

    Which of the following is NOT considered a component of

    fiscal reform measures?
    A Change in interest rate Correct Answer Incorrect Answer
    B Public expenditure reforms Correct Answer Incorrect Answer
    C Taxation reforms Correct Answer Incorrect Answer
    D Control of public debt Correct Answer Incorrect Answer

    Solution

    Changes in interest rates are not components of fiscal reforms but rather elements of monetary policy managed by the central bank (Reserve Bank of India). Fiscal reforms focus on improving government finances through taxation adjustments, public expenditure management, and public debt control. While monetary policy (including interest rate adjustments) is implemented by the RBI, fiscal policy is managed by the Finance Ministry.

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