The correct answer is: d) All of the above
The Fiscal Responsibility and Budget Management (FRBM) Act is an Act of the Parliament of India enacted in 2003. The Act aims to ensure fiscal discipline, transparency, and long-term sustainability in the management of the country’s finances.
The Act sets out a number of fiscal targets, including a limit on the fiscal deficit, a target for the revenue deficit, and a target for the gross fiscal deficit. The Act also requires the government to publish a medium-term fiscal policy statement and a fiscal responsibility report.
The FRBM Act has been successful in achieving its objectives of fiscal discipline and transparency. The fiscal deficit has been brought down from over 10% of GDP in 2003 to around 3% of GDP in recent years. The revenue deficit has also been brought down from over 4% of GDP in 2003 to around 1% of GDP in recent years.
The FRBM Act has also helped to improve the long-term sustainability of the country’s finances. The government has been able to reduce its debt-to-GDP ratio from over 80% in 2003 to around 60% in recent years.
The FRBM Act has been a landmark piece of legislation in the management of the country’s finances. It has helped to improve fiscal discipline, transparency, and long-term sustainability.
Here is a brief explanation of each option:
- Fiscal discipline refers to the government’s ability to control its spending and borrowing. The FRBM Act sets out a number of fiscal targets, including a limit on the fiscal deficit, a target for the revenue deficit, and a target for the gross fiscal deficit. These targets are designed to help the government to control its spending and borrowing.
- Transparency refers to the government’s openness and accountability in its financial management. The FRBM Act requires the government to publish a medium-term fiscal policy statement and a fiscal responsibility report. These reports provide information on the government’s fiscal performance and its plans for the future.
- Long-term sustainability refers to the government’s ability to meet its financial obligations in the long term. The FRBM Act has helped to improve the long-term sustainability of the country’s finances by reducing the government’s debt-to-GDP ratio.