Tax reform refers to reforms in a government’s taxation and public spending policies, collectively known as _______.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Fiscal Policy.
Tax reform refers to reforms in a government’s taxation and public spending policies, collectively known as fiscal policy. Fiscal policy involves decisions on how governments collect revenue through taxes and allocate spending to achieve economic stability, growth, and equity. Tax reforms aim to simplify tax structures, enhance compliance, and promote economic efficiency. These reforms may include reducing tax rates, broadening the tax base, improving tax administration, and ensuring fairness while aligning policies with national economic priorities.