Fill in the blank:
The Government of India introduced the Fiscal Responsibility and Budget Management (FRBM) Act to decrease the issue of fiscal deficit and ______.
Show answer & explanation
Correct answer: A
Explanation
Correct Answer
Public debt
Explanation
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, was introduced to ensure fiscal discipline in India. The primary objective of this act is to reduce the fiscal deficit and manage public debt effectively, thereby ensuring transparency and stability in government finances.
Key Points
The FRBM Act requires the central government to set binding targets for reducing the fiscal deficit. It encourages the government to adopt strict rules for debt management and promote transparency to achieve long-term economic stability.
Important Questions and Answers
Question: In which year was the FRBM Act implemented?
Answer: The FRBM Act was implemented in the year 2003.
Question: What is a fiscal deficit?
Answer: A fiscal deficit is the difference between the government's total expenditure and its total income, excluding borrowings.