CURRENT AFFAIRS
CURRENT AFFAIRS
Description
The Fiscal Responsibility and Budget Management (FRBM) Act, passed in 2003, aimed to make the Indian government more responsible with its money and reduce debt. Its significance has been highlighted during economic downturns, particularly during the COVID-19 pandemic, when the FRBM Act's traditional fiscal targets were relaxed to allow for more government investment.
Origin And Implementation
The FRBM Act was first proposed by Yashwant Sinha, the Finance Minister at the time, in 2000. It became law in 2003. It was officially implemented on July 5, 2004, with the purpose of establishing a budgetary management framework to ensure macroeconomic stability and long-term economic growth.
Goals And Objectives Of The FRBM Act
The Act's objectives are to-
Maintain a solid budget.
Increase transparency in government financial operations.
Allow the Reserve Bank of India more practical freedom to regulate inflation.
One of its long-term goals is to ensure that financial burdens are distributed equally.
Key Features Of The FRBM Act
The FRBM Act requires the presentation of various documents alongside the Union Budget-
Medium-term fiscal policy statement.
Statement regarding the macroeconomic framework.
Statement outlining fiscal policy strategy.
These papers provide a comprehensive view of the government's finances by predicting key fiscal indicators such as income and deficits. The Act allows the government to diverge from its fiscal goals in specific circumstances, such as natural disasters or major risks to national security, giving fiscal policy considerable leeway.
Challenges And Reforms
The FRBM Act has a very thorough structure, but it has been difficult to put into effect, thus it has been amended numerous times over the years. In 2016, the NK Singh Committee reviewed the Act and proposed a number of amendments, including making debt reduction the primary budget priority.
Create a separate economic council to keep an eye on things.
Making it clear which kind of departures from economic goals are acceptable.
Establishing rigorous guidelines for how the government can borrow money.
These ideas aim to improve the FRBM Act's ability to promote long-term economic growth and security. The FRBBM Act is still critical to India's economic management since it mandates systematic fiscal control and transparency. This is especially true given the global economy's instability.
Welcome to Notopedia.com, your free learning platform that caters to the diverse needs of students and aspirants across a spectrum of entrance exams and educational endeavors. Whether you're preparing for highly anticipated exams like CAT 2023, NEET 2023, JEE Main, or bank job vacancies, our platform offers a wealth of resources to guide you towards success. Stay up-to-date with the latest exam dates, announcements, and results for various government recruitment exams, including SSC CGL, CHSL, NDA, and UPSC. Explore comprehensive study materials, sample papers, and exam patterns to hone your skills and boost your confidence. From important dates like CBSE Class 10 and 12 date sheets to exam-specific information like JEE Main 2023 application form date, we cover it all. Notopedia.com is your go-to source for everything from admissions and admit cards to scholarships and college information. Whether you're aiming for a career in defense, government, banking, or higher education, our free learning platform equips you with the knowledge and resources you need to excel. Join us in your educational journey and unlock a world of opportunities, guidance, and comprehensive support.
For more Updates and Information - Visit Notopedia's Bulletin Board
For Latest Sarkari Jobs - Visit Notopedia's Sarkari Jobs Section
For access to more than 20,000 Colleges - Visit Notopedia's College Section
For School Studies and Exams Preparation across 14 Boards - Visit Notopedia's School Section
For Comprehensive Preparation of Sarkari Job Exams - Visit Notopedia's Sarkari Exams Section
