Fiscal policy is a policy of government’s actions and reactions .Every country does not want to grow only but develop also. In other words increase in National income and per capita income along with increased welfare of masses. For this the govt. Needs a sound fiscal policy which can help them to achieve desired objectives. This essay reviews the trends and trajectory of India’s fiscal policy with a focus on historical trends, fiscal discipline frameworks, and fiscal responses to the global financial crisis and subsequent return to a fiscal consolidation path. The initial years of India’s planning strategy were featured by a conservative fiscal policy whereby deficits were kept under control. The tax system was geared to transfer resources from the private sector to finance the large public sector driven industrialization process and also cover social welfare schemes.