With reference to Fiscal Responsibility and Budget Management FRBM Act consider following statements...........

Economic Affairs Public Finance and Debt Management

Download Solution PDF

With reference to Fiscal Responsibility and Budget Management (FRBM) Act, consider following statements

It aimed for eliminating both revenue deficit and fiscal deficit
It aimed for giving flexibility to RBI for inflation management

Select the correct statement.

1 only

2 only

Both

None

छोटे Courses बड़े Results

Master Public Finance and Debt Management

Prepare through Micro-courses

Try Now

Explanation:

FRBM Act had the objective of ensuring prudence in fiscal management by eliminating revenue deficit, REDUCING ( and not eliminating ) fiscal deficit hence 1st is incorrect, establishing improved debt management and improving transparency in a medium term framework with quantitative targets to be adhered by the state with regard to deficit measures and debt management. The act was also expected to give necessary flexibility to Reserve Bank of India(RBI) for managing inflation in India.

Report error

Submit Error