In which year did the Government of India bring the FRBM (Fiscal Responsibility and Budget Management) Act into effect?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 2004-05.
The Government of India brought the Fiscal Responsibility and Budget Management (FRBM) Act into effect in 2004. The Act was enacted to ensure fiscal discipline, aiming to reduce fiscal deficits and manage public debt effectively. It sets targets for the central government to reduce the fiscal deficit, enhance transparency in budgeting, and maintain long-term economic stability. The FRBM Act is an important tool for ensuring sustainable government borrowing and controlling inflation.