Economics · Fiscal Policy and FRBM Act
What primary objective does the Fiscal Responsibility and Budget Management (FRBM) Act serve regarding government fiscal policy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It mandates the government to prioritize social welfare spending over infrastructure development.
- 2It mandates blanket cuts in all public expenditure to reduce overall spending.
- 3It sets binding targets for reducing fiscal deficit and eliminating revenue deficit.✓
- 4It raises government borrowing limits to stimulate economic growth.
Correct answer
It sets binding targets for reducing fiscal deficit and eliminating revenue deficit.
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