Fiscal Responsibility and Budget Management (FRBM) Act primarily aims to:
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
Reduce fiscal deficit
Explanation:
The primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 is to institutionalize fiscal discipline, reduce fiscal deficits, and promote long-term macroeconomic stability in India. It mandates legal targets for the government to curb excessive borrowings and systematically lower fiscal and revenue deficits.
Additional Points:
The Act also enhances transparency and accountability by requiring the government to present specific fiscal policy statements before Parliament every year alongside the Union Budget.
Important Questions and Answers:
Question: In which year did the FRBM Act officially come into force?
Answer: 2004 (Enacted in 2003).
Question: Which committee was appointed to review the framework of the FRBM Act?
Answer: N.K. Singh Committee.