WBCS.LIVE practice question

The objective of the Fiscal Responsibility and Budget Management Act, 2004 is

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

Answer options

  1. to reduce revenue deficit.
  2. to reduce fiscal deficit.
  3. to ensure that public debt does not exceed 50% of the GDP of the year from 2011.
  4. All of the above

Correct answer and explanation

Correct answer: All of the above

Explanation: āœ… Correct Answer: D) All of the above šŸ“š Explanation: The FRBM Act was enacted to ensure long-term macro-economic stability by making the government responsible for its spending. It sets targets to reduce both revenue and fiscal deficits to sustainable levels (A and B). It also aims to keep the total public debt within a manageable percentage of the GDP (C).