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SSC CHSL 2025 PYQ — Question 98

SSC CHSL - 15 Nov 2025 - Shift 1 • General Awareness • Q98

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As per the Fiscal Responsibility and Budget Management Act-2003, which of the following is NOT laid before both the house of parliament along with Annual Financial statement?

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Correct answer: D

Explanation

The correct answer is Option 4: Monetary Policy Statement.
Explanation:

  • According to the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, it is mandatory for the Central Government to lay three specific policy statements before both Houses of Parliament, along with the Annual Financial Statement (Budget).
  • The Monetary Policy Statement (Option 4) is not a part of the Budget. It is issued independently by the Reserve Bank of India (RBI) and is not presented in Parliament by the Ministry of Finance alongside the Budget.

Mandatory Documents Presented under the FRBM Act:

  • As per Section 3 of the Act, the Government is required to present the following three statements along with the Budget:
  • Medium-term Fiscal Policy Statement: This outlines the targets for the fiscal deficit, revenue deficit, and debt for the next three years.
  • Fiscal Policy Strategy Statement: This details the Government's fiscal priorities, taxation policies, and expenditure management strategy.
  • Macro-economic Framework Statement: This analyzes the current state of the economy and key parameters such as the GDP growth rate.

Key Objectives of the FRBM Act, 2003:

  • Reducing Fiscal Deficit: To control unnecessary government expenditure and bring the fiscal deficit down to 3% of the Gross Domestic Product (GDP).
  • Transparency: To introduce greater transparency in financial management.
  • Inter-generational Equity: To ensure that future generations are not burdened with excessive debt.
  • Additional Information (from an examination perspective):
  • N.K. Singh Committee (2016): This committee was constituted to review the FRBM Act; it recommended prioritizing the debt-to-GDP ratio.
  • Escape Clause: This allows the Government to deviate slightly from the fiscal deficit targets in situations involving national security, war, or a severe economic crisis. Important Questions for Upcoming Examinations:

Question: In which year was the FRBM Act enacted?
Answer: In 2003.
Question: Who formulates the Fiscal Policy?
Answer: The Government of India (Ministry of Finance).
Question: Who determines the Monetary Policy?
Answer: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).