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SSC CHSL 2024 PYQ — Question 43

SSC CHSL - 02 July 2024 - Shift 2 • General Awareness • Q43

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What is the main objective of Fiscal Responsibility and Budget Management Act (FRBMA), 2003?

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Correct answer: C

Explanation

The correct answer is Option 3 i.e. To reduce fiscal deficit.

The primary objective of the Fiscal Responsibility and Budget Management Act (FRBMA), 2003, is to improve the fiscal management of the Indian government. It aims to achieve this by:

  • Reducing the fiscal deficit: The FRBMA mandates that the government gradually reduce its fiscal deficit, which is the difference between its total expenditure and total revenue.
  • Controlling government expenditure: The Act imposes limits on government expenditure, especially non-Plan expenditure, to ensure that spending is in line with revenue generation.
  • Promoting transparency and accountability: The FRBMA requires the government to disclose its fiscal position regularly and to be accountable for its financial decisions.