Is it true that formal planning of fiscal policy is done once a year and included in the budget?

The statement that formal planning of fiscal policy is done once a year and included in the budget is indeed true. Fiscal policy refers to the government's approach to managing its revenues and expenditures, which is primarily carried out through the national budget.

Typically, the budget is prepared annually and outlines the government's planned spending, revenue generation through taxes, and other fiscal measures for the upcoming year. This process involves considerable analysis and a projection of economic conditions to align government spending with its strategic economic objectives.

While there may be adjustments to fiscal policy throughout the year in response to changing economic circumstances, the formal planning process and the establishment of the budget itself occur on an annual basis. This ensures that the government has a clear roadmap of its fiscal strategy, allowing for coordinated efforts toward economic stability and growth.

Other options, such as suggesting that planning is done less frequently or that it is uncertain, do not accurately reflect the standardized processes commonly followed in fiscal policy formulation, hence the focus on an annual cycle for budget establishment.