What was the main purpose behind the enactment of the FRBM (Fiscal Responsibility and Budget Management) Act?

Correct option is C

The correct answer is: (c) To reduce government borrowing
Explanation:
· The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted to ensure fiscal discipline and reduce India’s high fiscal deficit and government borrowing.
· Its main aim was to bring transparency, accountability, and long-term stability in fiscal management.
Information Booster:
· Enacted in 2003, came into force in July 2004.
· Target: Reduce fiscal deficit to 3% of GDP and eliminate revenue deficit.
· Prohibits the government from borrowing from the RBI (except emergencies).
· Strengthened India’s macroeconomic stability and investor confidence.
· Reviewed by the N.K. Singh Committee (2016), which recommended a debt-to-GDP target of 60% by 2023.