The correct answer for the question "Fiscal policy in India is formulated by—" is option 3, the Finance Ministry.

Fiscal policy refers to the government`s decisions regarding taxation and spending to influence the economy. In India, the formulation of fiscal policy is done by the Finance Ministry. The Finance Ministry is headed by the Finance Minister, who is responsible for managing the financial affairs of the country.

Option 1, the Reserve Bank of India, is incorrect. The Reserve Bank of India (RBI) is the central bank of the country and is responsible for monetary policy, not fiscal policy. Monetary policy focuses on controlling the money supply and interest rates to regulate inflation and promote overall economic stability.

Option 2, the Planning Commission, is also incorrect. The Planning Commission was a government body that was responsible for formulating India`s Five-Year Plans. However, it was replaced by the NITI Aayog in 2015, which is a think tank that provides policy advice and not specifically responsible for fiscal policy formulation.

Option 4, the Securities and Exchange Board of India (SEBI), is also incorrect. SEBI is the regulator of the securities market in India and is responsible for overseeing the functioning of stock exchanges and protecting the interests of