TNPSC Guru - This FRBM act can be asked in TNPSC Group 1 Mains
FRBM enacted in 2003, to ensure fiscal discipline and to reduce fiscal deficit by moving towards a balanced budget.
Received President's Assent - August 26, 2003
Came to an effect from - June 5, 2004
Chairman of the review committee of the FRBM Act - N K SinghRules / Features of the Act
- Revenue Deficit
- Eliminated by - March 31, 2009
- Minimum Annual reduction - 0.5% of GDP in each financial year
- Fiscal Deficit
- Minimum Annual reduction - 0.3% of GDP in each financial year
- To reach 3% of fiscal deficit by - 2008-2009 Financial year
- Minimum Annual reduction - 1% of GDP in each financial year
- To reach total debt within - 6% by 2007-2008
- Finance minister to review the trends in receipts and expenditure quarterly.
- RBI not to subscibe the government bond from - April 1, 2006
- Four indicators to be projected in the medium term fiscal policy statement
- Revenue Deficit as a % of GDP.
- Fiscal Deficit as a % of GDP
- Tax Revenue as a % of GDP
- Total outstanding liabilities as a % of GDP