Which of the following is the primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act in India? MCQ with Answer and Explanation
Which of the following is the primary objective of the Fiscal Responsibility and Budget Management (FRBM) Act in India?
A. To eliminate all forms of taxation
B. To ensure inter-generational equity and fiscal sustainability
C. To promote deficit financing through money creation
D. To increase fiscal deficit indefinitely
Answer: Option B
Solution (By JKSSB Mock Tests)
The FRBM Act aims to ensure fiscal discipline, inter-generational equity in fiscal management and long-term macroeconomic stability by setting targets for deficit reduction.
Explanation:
Effective Revenue Deficit is Revenue Deficit minus grants given by the Centre to states and union territories for the creation of capital assets.
Explanation:
The Samuelson condition requires that the sum of the marginal rates of substitution between the public good and a private good across all individuals equals the marginal rate of transformation (marginal cost).
No comments yet. Be the first to start the discussion!