What was the main objective of the FRBM Act which was enacted by Parliament in 2003?
[A] Bring liquidity
[B] Bring Fiscal Discipline
[C] Bring Trade equilibrium
[D] To increase GDP
Show Answer
Correct Answer: B [Bring Fiscal Discipline]
Notes:
The Fiscal Responsibility and Budget Management (FRBM) Bill, 2000 was introduced by Atal Bihari Vajpayee Government to provide a legal backing to fiscal discipline at both the centre and state level. Under this act, it was mandated that both states and centre would wipe out revenue deficit and cut fiscal deficit to 3% by 2008-09, thus brining much needed fiscal discipline in a period of 5 years.
