Q. Which one of the following is the primary objective of the Fiscal Responsibility and Budget Management Act (FRBM Act)?

[A] It aims to balance the government budget every year.

[B] It aims to control inflation and ensure macroeconomic stability.

[C] It aims to reduce public debt and promote fiscal sustainability.

[D] It aims to increase government spending on social welfare programs.

Answer: C
Notes:

Explanation – The primary objective of the Fiscal Responsibility and Budget Management Act (FRBM Act) is to reduce public debt and promote fiscal sustainability.

The FRBM Act was enacted in 2003 with the aim of institutionalizing financial discipline and reducing India’s high public debt levels. It sets targets for the government to reduce its fiscal deficit, revenue deficit, and public debt over time.

Source: Forum IAS

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