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Q6·GS Paper 1 · Prelims 2020

FRBM Act and Budget Documents

EconomyFiscal Policy, Taxation & BudgetFactual singleMediumStatic

Question

Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by

Options

a

Long standing parliamentary convention

b

Article 112 and Article 110(1) of the Constitution of India

c

Article 113 of the Constitution of India

d

Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Answer

Explanation

The Macro-Economic Framework Statement, along with the Medium-Term Fiscal Policy Statement and the Fiscal Policy Strategy Statement, are mandated by the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 to be presented alongside the Union Budget. > One-line conceptual takeaway: FRBM Act binds the government to present specific macro-economic assessments to ensure fiscal discipline. Answer: (d).

Question details

Year

2020

Paper

GS Paper 1

Question

Q6

Subject

Economy

Sub-topic

Fiscal Policy, Taxation & Budget

Type

Factual single

Difficulty

Medium

Nature

Static

Source hint

FRBM Act 2003

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