BANKING AFFAIRS

Detailed explanation-1: -It is an act of the parliament that set targets for the Government of India to establish financial discipline, improve the management of public funds, strengthen fiscal prudence, and reduce its fiscal deficits.

Detailed explanation-2: -The Fiscal Responsibility and Budget Management Act or FRBM Act of 2003 is an act that targets a path for the government of India to successfully establish stability and financial discipline in the country’s economy. It also aims to refine the public funds management, and also decrease fiscal deficit.

Detailed explanation-3: -Conclusion. Brought by the Atal Bihari Vajpayee-led BJP government, the FRBM Act was introduced to ensure that the government in power would maintain a certain fiscal discipline. It was also introduced to provide legal backing to fiscal discipline. The bill was passed in 2000 and again in 2003.

Detailed explanation-4: -What is the full form of the FRBM Act? The fiscal Responsibility and Budget Management Act is the full form of the FRBM Act. The FRBM Act aims to maintain economic stability and balance macroeconomics. The FRBM Act 2003 also highlighted the state of finances of the Government in India.

Detailed explanation-5: -16-11-2022 The Act envisages the setting of limits on the Central government’s debt and deficits. It limited the fiscal deficit to 3% of the GDP. It also mandates greater transparency in fiscal operations of the Central government and the conduct of fiscal policy in a medium-term framework.