Question

Which of the following is NOT a provision of the Fiscal Responsibility and Budget Management (FRB

Q: Answer-Which of the following is NOT a provision of the Fiscal Responsibility and Budget Management (FRBM)...

Statements I and II are genuine FRBM provisions. Statement III is INCORRECT the N.K. Singh Committee recommended a Fiscal Council but it has not been established, and even the recommendation was for an advisory body, not one with approval powers over expenditure. Statement IV is INCORRECT escape clauses permitting 0.5 deviation exist for structural reforms, far-below-trend growth, and national calamities.

M Act, 2003 or its subsequent amendments? I. The RBI is prohibited from subscribing to primary issuances of Central Government securities. II. The government must present a Medium-Term Fiscal Policy Statement along with the Union Budget. III. A Fiscal Council is to be established with statutory powers to approve expenditure proposals of the Central Government. IV. The fiscal deficit target of 3% of GDP must be achieved and maintained in perpetuity without any escape clauses.

A I and II only

B III and IV only

C I only

D II and III only

E None — all are provisions of FRBM

Practice Next