Fiscal Responsibility and Budget Management Act was enacted in which year?
Show answer & explanation
Correct answer: C
Explanation
Fiscal Responsibility and Budget Management (FRBM) Act -
The FRBM (Fiscal Responsibility and Budget Management) Act is an important law passed by the Parliament of India, with the primary objective of bringing discipline to India's fiscal management system.
Year of Passage: This Act was enacted in 2003 and came into effect from July 2004.
Main Objectives:
1. To reduce the gap between government expenditure and revenue (fiscal deficit).
2. To eliminate the revenue deficit.
3. To bring the country's debt-to-GDP ratio to a safe level.
4. To ensure intergenerational equity to reduce the debt burden on future generations.