General Knowledge · Economy
Consider the following statements regarding State borrowing and fiscal discipline in India: I. Under the Fiscal Responsibility and Budget Management (FRBM) framework, State Governments are required to keep their fiscal deficit within prescribed limits linked to Gross State Domestic Product (GSDP). II. The Revenue Deficit Grant (RDG) recommended by the Finance Commission is intended to finance capital expenditure of States and reduce their dependence on market borrowings. Which of the statements given above is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Neither I nor II
- 2Both I and II
- 3II only
- 4I only✓
Correct answer
I only
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