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 to ensure responsible fiscal management in the country. The Act aims to achieve the following objectives:
- To reduce the fiscal deficit to a sustainable level.
- To eliminate revenue deficit.
- To maintain a stable and predictable fiscal policy.
- To improve transparency and accountability in fiscal management.
- To promote fiscal discipline and responsibility.
The Act has been successful in achieving some of its objectives, such as reducing the fiscal deficit and revenue deficit. However, it has not been able to achieve all of its objectives, such as maintaining a stable and predictable fiscal policy.
The FRBM Act has been amended several times since its enactment. The most recent amendment was in 2017. The amendment has made some changes to the Act, such as increasing the fiscal deficit target and allowing for more flexibility in fiscal management.
The FRBM Act is an important piece of legislation that has helped to improve fiscal management in India. However, there is still room for improvement. The government needs to continue to implement the Act effectively and make necessary changes to ensure that it achieves its objectives.
Here is a brief explanation of each option:
- Responsible budgeting: This means that the government should spend within its means and not borrow excessively.
- Reduction of fiscal deficit: The fiscal deficit is the difference between the government’s revenue and expenditure. A high fiscal deficit means that the government is borrowing more money than it is earning. This can lead to problems such as inflation and debt.
- Transparency in fiscal policies: This means that the government should be open and transparent about its fiscal policies. This includes publishing information about its revenue, expenditure, and debt.
All of these objectives are important for ensuring responsible fiscal management. By achieving these objectives, the government can help to promote economic growth and stability.