The correct answer is: a) Ensure fiscal discipline and transparency.
The Meghalaya Fiscal Responsibility and Budget Management (FRBM) Act, 2017 is a law that aims to ensure fiscal discipline and transparency in the state of Meghalaya. The Act sets out a number of fiscal targets that the state government must meet, including a limit on the fiscal deficit and the debt to GDP ratio. The Act also requires the state government to publish a detailed budget document that outlines its fiscal plans for the coming year.
The FRBM Act is an important tool for ensuring that the state government manages its finances responsibly. The Act helps to prevent the state from running into debt problems and to ensure that it has the resources to meet its obligations. The Act also helps to improve transparency in the state’s finances, making it easier for citizens to hold the government accountable.
The other options are incorrect because:
- Option b) Encourage deficit financing is incorrect because the FRBM Act sets limits on the fiscal deficit.
- Option c) Increase reliance on central grants is incorrect because the FRBM Act does not require the state government to increase its reliance on central grants.
- Option d) Centralize financial decision-making is incorrect because the FRBM Act does not centralize financial decision-making. The state government is still responsible for making its own financial decisions.