• Counter-cyclical fiscal policy refers to fiscal policy measures adopted by the government in order to balance the slowdown or overheating (boom) of the economy according to the time.

• During the time of slowdown, the government’s fiscal policy measures to arrest the slowdown and to increase the aggregate demand in the economy may be termed as counter-cyclical fiscal policy measures.

• Corporate tax cuts are aimed to reduce the tax burden on the industry and to improve investor sentiment, which will, in turn, improve employment status and, thus, aggregate demand.

• Bank recapitalisation is a step towards offsetting the effects of rising Non Performing Assets (NPAs) in Public Sector Banks (PSBs). This step is taken in order to improve credit growth boosting investments.

• Stimulus package to the real estate sector is said to have windfall gains in backward and forward linked sectors, thereby boosting demand in the economy.

• Strategic disinvestment is done to keep fiscal deficit targets in check and, thus, preventing crowding out of investments in the private sector.