The income and expenditure policy of the government is called as.............

Fiscal Policy

Fiscal policy deals with the government's decisions regarding its revenue collection through taxation and its expenditure on various public goods and services. Essentially, it's about how the government manages its money. When the government adjusts its taxation levels and spending to influence and stabilize the economy, that falls under the umbrella of fiscal policy. For example, during economic downturns, a government might implement expansionary fiscal policies, such as cutting taxes or increasing spending, to stimulate economic activity. On the flip side, during periods of high inflation, contractionary fiscal policies, like raising taxes or reducing government spending, might be adopted to cool down the economy.