FRBM Review Committee Debt Targets

Statement 1 is correct: The FRBM Review Committee (Urjit Patel Committee, 2017) recommended a debt-to-GDP ratio target of 60% for the general government (combined central and state) by 2023, with 40% for the Central Government and 20% for the State Governments. This was a significant recommendation for India's fiscal framework. Statement 2 is incorrect: The actual figures reported were approximately the reverse—the Central Government had a higher debt-to-GDP ratio than states. The specific numbers cited in the statement do not match official data. Statement 3 is correct: Article 293 of the Constitution mandates that if a State owes any outstanding liabilities to the Central Government, the State must obtain the President's (i.e., Central Government's) consent before raising any loan. This is a constitutional provision ensuring fiscal discipline and central oversight. > FRBM recommended 60% combined debt (40% central, 20% state); Article 293 requires consent for borrowing when state owes centre. Answer: (c).