Fiscal Responsibility and Budget Management Act, 2003 (FRBMA): Provisions.
Q. Which of the following statements is/are correct about the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)?
1. The Act provided that the Central Government shall not borrow from the Reserve Bank of India(RBI) except under exceptional circumstances where there is temporary shortage of cash in particular financial year..
2. The main purpose was to eliminate revenue deficit of the country & building revenue surplus thereafter and bring down the fiscal deficit to a manageable 3% of the GDP by March 2008.- Published on 15 Sep 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Both
The main objective of the act is to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.
