The correct answer is: d) All of the above
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 is an Act of the Parliament of India enacted with the objective of ensuring macroeconomic stability and fiscal prudence in the country. The Act sets out a medium-term fiscal framework for the central government and prescribes limits on the fiscal deficit and revenue deficit. The Act also provides for transparency in public finances and accountability of the government for its fiscal performance.
The FRBM Act has been successful in achieving its objectives of fiscal consolidation and macroeconomic stability. The fiscal deficit and revenue deficit have been brought down significantly since the enactment of the Act. The Act has also helped to improve transparency in public finances and accountability of the government for its fiscal performance.
The FRBM Act has been amended twice, in 2005 and 2012. The amendments have made the Act more flexible and responsive to the changing economic conditions. The Act has also been supplemented by a number of other fiscal reforms, such as the introduction of the Goods and Services Tax (GST) and the Direct Tax Code (DTC).
The FRBM Act has been a landmark reform in the Indian fiscal system. It has helped to improve the country’s macroeconomic stability and fiscal prudence. The Act has also helped to improve transparency in public finances and accountability of the government for its fiscal performance.
Here is a brief explanation of each option:
- Prudent fiscal management means that the government should spend within its means and avoid borrowing too much money. This will help to keep the country’s debt levels under control and avoid a fiscal crisis.
- Reduction of fiscal deficit means that the government should reduce the difference between its revenue and expenditure. This will help to improve the country’s fiscal position and make it more sustainable in the long run.
- Transparency in public finance means that the government should disclose all of its financial information in a timely and accurate manner. This will help to ensure that the public is aware of the government’s financial position and can hold it accountable for its spending.
- All of the above means that the FRBM Act aims to ensure all of the above objectives.