Fiscal policy is based on Keynesian economic theory, affecting the economy by coordinating government spending and taxes. The government aims to stabilize the business cycle and control aggregate demand by changing tax rates and public spending.
RBI's repo rate setting is always volatile. Historically, the rate has fluctuated a lot. Statistics show that the aforementioned rate fell from 8% to 6% from the first month of 2014 to August 2017.
