Home Indian Economy MCQs

Question

The FRBM Act primarily aims to:

  1. Increase government spending
  2. Reduce fiscal deficit and promote fiscal discipline
  3. Control inflation
  4. Increase tax rates

Answer:

Option B: Reduce fiscal deficit and promote fiscal discipline

Detailed Solution:

The correct answer is “Reduce fiscal deficit and promote fiscal discipline”.

The Fiscal Responsibility and Budget Management (FRBM) Act aims to ensure fiscal discipline and reduce the fiscal deficit of the government.