The Fiscal Responsibility and Budget Management Act, 2003 aims to bring down the fiscal deficit to a certain percentage of GDP. What is the target fiscal deficit as per the Act?
3.5%
4.5%
5.5%
6.5%
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC Combined Section Officer – 2019-20
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 originally targeted a fiscal deficit of 3% of GDP by March 31, 2008. This target and timeline have been revised multiple times through amendments and policy statements based on prevailing economic conditions. While the original act aimed for 3%, the options provided do not include 3%. Among the given options, 4.5% is a stated medium-term fiscal deficit target (specifically for FY 2025-26) as part of the current fiscal consolidation path outlined by the government under the FRBM framework.