Phase IFoundation
Background
Overview
This concept illustrates how fiscal policy is used to support emerging technologies and achieve socio-economic goals. It involves understanding government expenditure, budget allocation, and the economic rationale behind such interventions, as well as their effectiveness and potential alternatives.
Government subsidies are financial assistance provided to individuals or businesses to promote certain economic activities or achieve social objectives. In the context of digital payments, subsidies are used to offset operational costs for payment service providers, thereby encouraging the adoption and sustainability of digital transaction platforms like UPI.