The Governor of Telangana has amended the Telangana Fiscal Responsibility and Budget Management Act-2005 which will enable the State to increase the borrowing limit by how much percent from earlier 3%?

2020

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	3%
B	1%
C	4%
D	2%

Explanation:

Detailed explanation-1: -As a regular practice, the Center announces a Fiscal Responsibility and Budget Management (FRBM) limit for each state. Telangana was given an FRBM limit of Rs 54, 000 crores at the beginning of the 2022-23 financial year.

Detailed explanation-2: -Under the Fiscal Responsibility and Budget Management Act, it is the responsibility of the central government to ensure intergenerational equity in fiscal management and long-term macroeconomic stability by removing fiscal impediments in the effective conduct of monetary policy and prudential debt management.

Detailed explanation-3: -Objectives of FRBM Act The Fiscal Responsibility and Budget Management Act’s principal goals were to: Establish transparent fiscal management mechanisms in the country. Provide a more equitable and controllable distribution of the country’s debts over time. Achieve long-term fiscal stability for India.

Detailed explanation-4: -Notes: Fiscal Responsibility and Budget Management Act (FRBMA) concerns both fiscal deficit and revenue deficit. A fiscal deficit is a shortfall in a government’s income compared with its spending. The government that has a fiscal deficit is spending beyond its means.

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