The objectives of the Fiscal Responsibility and Budget Management Act (FRBMA) act is / are __:
1. Eliminate Fiscal deficit
2. Eliminate Revenue deficit
3. Give more powers to RBI to manage inflation
Choose the correct option from the codes given below:

Answer: [C] Only 2 & 3 are correct

Fiscal Responsibility and Budget Management Act (FRBMA). Objectives:
• Institutionalize financial discipline
• Reduce India’s fiscal deficit to 3 % by March 2008
• Eliminate India’s revenue deficit
• Improve macroeconomic management
• Overall management of the public funds by moving towards a balanced budget.
• To introduce transparent fiscal management systems in the country
• To introduce a more equitable and manageable distribution of the country’s debts over the years
• To aim for fiscal stability for India in the long run
• Additionally, the act was expected to give necessary flexibility to Reserve Bank of India(RBI) for managing inflation in India.

This question is a part of GKToday's Integrated IAS General Studies Module