UPSC » Governance Notes » Policy Instruments

Policy Instruments

  • The government employs several strategies as policy instruments in order to accomplish policies. They act as a tool to achieve the desired results.
  • Information exchange, licensing, service provisions, spending, rules, doing nothing, partnerships, taxation, contracts, subsidies, and authority are some of the policy instruments.
  • The policy instruments are expected to:

⇒ Individuals’ behaviour will alter as a result of your efforts.

⇒ Identify the socio-economic and political conditions.

⇒ Assist the general population with their needs.

⇒ Constraints to the policy instruments:

⇒ Past actions.

⇒ Economic, social, international, and cultural influences are all present.

⇒ The political framework.

Various Policy Tools at Government’s Disposal:   

  • Doing Nothing: No intervention by the government.
  • Information-Based: Using strategies such as information transfer, moral persuasion, and effective communication to influence others.
  • Expenditure-Based: Using money as an instrument to achieve objectives of policy. This is done through various money disbursement techniques like grants, subsidies, etc.
  • Regulation: Limiting the activities according to the norms and acceptable behaviour.
  • Acting Directly: Direct provision of services to the citizen, for example, schools, waste management, parks, etc.

Influencing Factors to Policy Instruments:        

  • Government and Governance
  • International Influence