Question

Which of the following statements about the FRBM (Fiscal Responsibility and Budget Management) framework is correct?

The FRBM Act aims for long-term fiscal discipline through a glide path for revenue deficit and fiscal deficit, improving fiscal sustainability.

A It mandates the RBI to maintain the fiscal deficit ceiling.

B It requires the Centre to eliminate revenue deficit and reduce fiscal deficit on a glide path.

C It restricts states from borrowing from the open market.

D It sets monetary policy targets for RBI.

E It prohibits any supplementary grants during a financial year.

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