The Fiscal Responsibility and Budget Management Act was enacted in which year?
- A.1991
- B.1999
- C.2003
- D.2016
Correct answer
Explanation
The correct answer is C, 2003. The Fiscal Responsibility and Budget Management Act was passed by Parliament in 2003 and its rules were brought into force in 2004. It requires the central government to place medium-term fiscal policy statements before Parliament along with the budget, to limit its deficits, and to disclose its liabilities, and it contains an escape clause permitting deviation in defined circumstances such as a national security emergency or a collapse of farm output.
Option A, 1991, is the year of the balance of payments crisis and the start of liberalisation, not of this law. Option B, 1999, saw no such enactment. Option D, 2016, is the year in which the FRBM Review Committee under N. K. Singh was constituted; it submitted its report in 2017 and recommended that the ratio of debt to gross domestic product become the principal fiscal anchor.
Read the full article: Union Budget and Fiscal Policy: Deficits, Articles and PYQs
Practice Questions
View allWhich of the following items is included in the capital receipts of the Indian Budget?
- A.Commercial revenue
- B.Interest received
- C.Issuance of treasury bills
- D.Dividends and profits
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A receipt is capital if it either creates a liability for the government or reduces an asset it holds.
Read the full explanation →Which of the following is India's first Paperless Budget?
- A.Union Budget 2021-22
- B.Union Budget 2019-20
- C.Union Budget 2020-21
- D.Union Budget 2018-19
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It was the first union budget in India not to be printed.
Read the full explanation →As per Union Budget 2021-22, Fiscal deficit is estimated at ______ per cent of GDP in 2021-22.
- A.5.1
- B.7.6
- C.6.8
- D.7.2
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The budget estimate for the fiscal deficit of the central government in 2021-22 was placed at 6.8 per cent of gross domestic product.
Read the full explanation →The Contingency Fund of India is to be augmented from Rs. 500 crores to _________ crores through the Finance Bill as per the Union Budget 2021-22.
- A.Rs. 15,000
- B.Rs. 30,000
- C.Rs. 25,000
- D.Rs. 10,000
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The Union Budget 2021-22 proposed raising the corpus of the Contingency Fund of India from five hundred crore rupees to thirty thousand crore rupees, and the change was carried through the Finance Bill of that year.
Read the full explanation →Under which article of the Constitution is the Union Budget presented as the Annual Financial Statement?
- A.Article 110
- B.Article 112
- C.Article 114
- D.Article 123
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The Constitution nowhere uses the word budget. Article 112 requires the President to cause to be laid before both Houses of Parliament, in respect of every financial year, a statement of the estimated receipts and expenditure of the Government of India, and this statement is called the Annual Financial Statement.
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