The correct answer is: d) All of the above.
The Odisha Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2005 with the objective of promoting fiscal discipline, reducing revenue deficit, and controlling public borrowing. The Act sets out a medium-term fiscal framework for the state government and requires it to adhere to certain fiscal targets. These targets include a limit on the fiscal deficit, a limit on the revenue deficit, and a limit on the public debt.
The FRBM Act has been successful in promoting fiscal discipline in Odisha. The state government has been able to reduce its fiscal deficit and revenue deficit, and it has also been able to control its public debt. As a result, the state’s finances have improved significantly in recent years.
The FRBM Act has also had a positive impact on the state’s economy. The reduction in the fiscal deficit has led to a decrease in the state’s borrowing costs, which has made it easier for the government to invest in infrastructure and other development projects. The reduction in the revenue deficit has also led to an increase in the state’s revenue collection, which has helped to improve the state’s finances.
Overall, the FRBM Act has been a success in Odisha. It has helped to promote fiscal discipline, reduce the state’s fiscal deficit and revenue deficit, and control its public debt. As a result, the state’s finances have improved significantly in recent years, and the economy has benefited.
Here is a brief explanation of each option:
- Option (a): Promote fiscal discipline. Fiscal discipline is the practice of managing government finances in a responsible way. This means that the government should not spend more money than it takes in, and it should not borrow too much money. The FRBM Act aims to promote fiscal discipline by setting out a medium-term fiscal framework for the state government and requiring it to adhere to certain fiscal targets.
- Option (b): Reduce revenue deficit. The revenue deficit is the difference between the government’s revenue and its expenditure on revenue account. A revenue deficit means that the government is spending more money on revenue items, such as salaries and pensions, than it is collecting in revenue from taxes and other sources. The FRBM Act aims to reduce the revenue deficit by requiring the government to increase its revenue collection and reduce its expenditure on revenue items.
- Option (c): Control public borrowing. Public borrowing is the amount of money that the government borrows from the public, either through the sale of bonds or through other means. The FRBM Act aims to control public borrowing by setting a limit on the amount of money that the government can borrow each year. This limit is designed to ensure that the government does not borrow too much money and become too indebted.