As per the Fiscal Responsibility and Budget Management (FRBM) Act 2003 ,in every financial year, the Central Government shall present the following statements of fiscal policy before both Houses of Parliament along with the Budget document:
1. MediumTerm Fiscal Policy Statement
2. Fiscal Policy Strategy Statement
3. Macroeconomic Framework Statement
4. Medium-Term expenditure Framework Statement

Select the correct answer using the code given below:
(a). 1, 2 and 3 only
(b). 1, 2 and 4 only
(c). 2 and 3 only
(d). 1, 2, 3 and 4

Question

As per the Fiscal Responsibility and Budget Management (FRBM) Act 2003 ,in every financial year, the Central Government shall present the following statements of fiscal policy before both Houses of Parliament along with the Budget document:
1. MediumTerm Fiscal Policy Statement
2. Fiscal Policy Strategy Statement
3. Macroeconomic Framework Statement
4. Medium-Term expenditure Framework Statement

Select the correct answer using the code given below:
(a). 1, 2 and 3 only
(b). 1, 2 and 4 only
(c). 2 and 3 only
(d). 1, 2, 3 and 4

ONLiNE UPSC · Accepted Answer

As per the Fiscal Responsibility and Budget Management (FRBM) Act 2003, the Central Government is mandated to lay, in every financial year, before both Houses of Parliament, the following four key fiscal policy statements. These are presented along with the Budget or in the session immediately following the Budget session, depending on the statement.

(a) Medium Term Fiscal Policy Statement: Lays out three-year rolling targets for key fiscal indicators such as:
. Revenue deficit
. Fiscal deficit
. Tax-to-GDP ratio
. Total outstanding liabilities

(b) Fiscal Policy Strategy Statement :Outlines the policy priorities and fiscal strategy of the government over the medium term. It includes:
. Revenue and expenditure strategies
. Borrowing and investment plans
. Contingent liabilities

(c) Macroeconomic Framework Statement: provides a detailed assessment of the macroeconomic situation, including:
. GDP growth outlook
. Inflation trends
. Current account and external trade
. Global and domestic demand conditions

(d) &lsquo;Medium-Term expenditure Framework Statement: Indicates 3-year rolling targets for expenditure under various heads

Fiscal Responsibility and Budget Management (FRBM) Act 2003

Statements of fiscal policy under FRBM Act

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As per the Fiscal Responsibility and Budget Management (FRBM) Act 2003 ,in every financial year, the Central Government shall present the following statements of fiscal policy before both Houses of Parliament along with the Budget document: 1. MediumTerm Fiscal Policy Statement 2. Fiscal Policy Strategy Statement 3. Macroeconomic Framework Statement 4. Medium-Term expenditure Framework Statement Select the correct answer using the code given below: (a). 1, 2 and 3 only (b). 1, 2 and 4 only (c). 2 and 3 only (d). 1, 2, 3 and 4

Fiscal Responsibility and Budget Management (FRBM) Act 2003

Statements of fiscal policy under FRBM Act

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