Question
The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
The correct answer is
3% of GDP
Explanation:
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was introduced to ensure fiscal discipline in India.
Key target under the original FRBM Act:
- The Act aimed to reduce the fiscal deficit to 3% of GDP by the end of 2008–09.
- It also aimed at:
- Reducing revenue deficit to zero
- Ensuring sustainable public debt levels
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What was one of the major characteristics of India's economy at the time of independence in 1947?
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