Economics · Economy

Under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, which of the following practices was completely prohibited after the financial year 2006-07?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The allocation of infrastructure development grants to state governments
2The issuance of external sovereign bonds in foreign currency
3The release of food subsidies by the Central Government
4Reserve Bank of India (RBI) financing of the government's fiscal deficit through primary market purchases✓

Correct answer

Reserve Bank of India (RBI) financing of the government's fiscal deficit through primary market purchases

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