Consider the following statements with respect to FRBM review committee 1 The committee has recommen...........

Economic Affairs Public Finance and Debt Management

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Consider the following statements with respect to FRBM review committee

1.The committee has recommended to bring down fiscal deficit to zero percent by 2019-20.

2.This committee has suggested to set up a Fiscal Council to advice on escape clauses.

3.Implementation of the recommendations of this committee will has positive impact on social infrastructure.

Which of the above Statement/s is/are incorrect?

2 only

2 and 3 only

1 and 3 only

None of the above

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Explanation:

1 and 3 only

The statement that the committee has recommended bringing down the fiscal deficit to zero percent by 2019-20 is incorrect. The FRBM review committee did not recommend bringing the fiscal deficit down to zero percent. Instead, it suggested a fiscal deficit target of 3% of GDP by 2019-20.

The statement about the committee suggesting the establishment of a Fiscal Council to advise on escape clauses is correct.

The statement that the implementation of the recommendations of this committee will have a positive impact on social infrastructure is incorrect. The committee's recommendations are primarily focused on fiscal discipline and macroeconomic stability, and their direct impact on social infrastructure is not explicitly stated.

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