Fiscal Responsibility and Budget Management Act (FRBM Act)
Summary: The Fiscal Responsibility and Budget Management (FRBM) Act, enacted in 2003, aims to enhance fiscal discipline and reduce government debt in India. Initially proposed by Finance Minister Yashwant Sinha in 2000 and implemented in 2004, the Act mandates the presentation of key fiscal documents with the Union Budget to maintain fiscal stability and transparency. The Act allows for deviations in specific situations like natural disasters. Challenges in implementation led to multiple amendments, including recommendations from the NK Singh Committee in 2016 to focus on debt reduction, establish a fiscal council, clarify acceptable deviations, and set borrowing rules. The FRBM Act remains crucial for India’s economic management, especially during global economic instability.
If you like this post, please share your feedback in the comments section below so that we will upload more posts like this.
