FRBM Act


 
 
Concept Explanation
 

Fiscal Responsibility and Budget Management Act - FRBM

  • Enacted in 2003, the Fiscal Responsibility and Budget Management Act requires the elimination of revenue deficit by 2008-09. This means that from 2008 - 09. the government will have to meet all its revenue expenditure from its revenue receipts. Any borrowing would then only be to meet capital expenditure - repayment of loans, lending and fresh investment. The Act also mandates a 3% limit on the fiscal deficit after 2008-09.
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