According to FRBM Act, India's fiscal deficit should not exceed:
Question:
According to FRBM Act, India's fiscal deficit should not exceed:
According to FRBM Act, India's fiscal deficit should not exceed:
Options
Answer: (2) 3 percent of GDP
Explanation:
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 set the target for India's fiscal deficit at 3 percent of GDP. The NK Singh Committee (2017) recommended maintaining this 3% target as the medium-term fiscal consolidation goal, with a fiscal deficit of 2.5% by 2022-23. The 3% of GDP ceiling remains the standard benchmark under the FRBM framework.
Explanation:
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 set the target for India's fiscal deficit at 3 percent of GDP. The NK Singh Committee (2017) recommended maintaining this 3% target as the medium-term fiscal consolidation goal, with a fiscal deficit of 2.5% by 2022-23. The 3% of GDP ceiling remains the standard benchmark under the FRBM framework.
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