WBCS.LIVE practice question

The 'FRBM Act', enacted by the Parliament to ensure strict fiscal discipline, stands for what?

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

Answer options

  1. Fiscal Responsibility and Budget Management Act
  2. Federal Revenue and Banking Management Act
  3. Financial Reconstruction and Borrowing Mechanism Act
  4. Foreign Remittance and Business Management Act

Correct answer and explanation

Correct answer: Fiscal Responsibility and Budget Management Act

Explanation: āœ… Correct Answer: A) Fiscal Responsibility and Budget Management Act šŸ“š Explanation: The Fiscal Responsibility and Budget Management (FRBM) Act was passed in 2003. It was heavily designed to institutionalize financial discipline, heavily reduce India's fiscal deficit, completely eliminate the revenue deficit, and bring transparency to public funds management by strictly capping government borrowings.