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With reference to Fiscal Responsibility and Budget Management (FRBM) Act, consider following statements
Select the correct statement.
1 only
2 only
Both
None
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.
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