Which of the following is a feature of the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA)?

Correct option is A

The correct answer is option (A) The reduction in fiscal deficit by 0.3 per cent of GDP each year

• The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) aims to reduce fiscal deficits and maintain fiscal discipline for the Indian government.
• The specific feature related to fiscal deficit reduction under the Act mandates a reduction in fiscal deficit by 0.3 per cent of GDP each year.
  

Information Booster :-

• The FRBMA was introduced in 2003 with the objective of ensuring that the Indian government maintained a responsible fiscal policy and reduced its fiscal deficit over time.
  
• One of the key provisions of the Act was that the central government should aim to reduce the fiscal deficit (the difference between government expenditure and revenue) by 0.3% of GDP annually until it reached a sustainable level.
  
• The government was required to present an annual statement on fiscal policy and its annual budget for the Parliament's review.