Question

The Fiscal Responsibility and Budget Management (FRBM) Act primarily aims at:

  1. Increasing government spending.
  2. Reducing fiscal deficit.
  3. Promoting foreign investment.
  4. Controlling inflation.

Answer:

Option B: Reducing fiscal deficit.

Detailed Solution:

The correct answer is “Reducing fiscal deficit.”.

The FRBM Act primarily aims at reducing the fiscal deficit and promoting fiscal discipline in the government's financial management.