WBCS.LIVE practice question

The 'Fiscal Responsibility and Budget Management (FRBM) Act' was enacted in India in which year?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 2000
  2. 1991
  3. 2005
  4. 2003

Correct answer and explanation

Correct answer: 2003

Explanation: āœ… Correct Answer: (D) 2003 šŸ“š Explanation: The FRBM Act was enacted in 2003 with the objective of institutionalizing financial discipline and reducing India's fiscal deficit. It aimed to make the central government responsible for long-term macro-economic stability. The Act set targets for the government to eliminate the revenue deficit and reduce the fiscal deficit to a manageable 3% of the GDP. It has undergone several amendments over the years to reflect changing economic realities.