“Public Finances, Budget, Public Expenditure, Welfare, Fiscal Responsibility and Budget Management (FRBM) Act, 2003, Subsidies, Salaries and Pensions, Taxation, Fiscal Deficit, Pay Commissions.” This presentation delves into the interplay between taxation and public expenditure in India, discussing the critical role of fiscal prudence in governance. It examines how effective tax management can lead to better public expenditure control, ultimately contributing to overall fiscal health and reducing the fiscal deficit.