SSC Economics Sample Paper NCERT Sample Paper-7

  • question_answer
    Consider the following statements in respect of the Fiscal Responsibility and Budget Management Act:
    (1) It lays down limits for revenue deficit and fiscal deficit as a percentage of GDP
    (2) It applies to both Central and State Governments
    (3) It does not permit the Central Government to give guarantees to loans raised by PSUs and State Governments beyond 0.5 percent of GDP
    (4) It prescribes an upper limit for the liabilities of the government. Which of these statements are correct?

    A)  1 and 3 only    

    B)  1, 2, 3 and 4

    C)  2 and 4 only    

    D)  1, 3 and 4

    Correct Answer: D

    Solution :

    [d] The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalise financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.

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