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 promote deficit financing through money creation
B. To eliminate all forms of taxation
C. To increase fiscal deficit indefinitely
D. To ensure inter-generational equity and fiscal sustainability
Answer: Option D
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:
MFN principle under WTO requires that any advantage granted to one member country must be extended to all other members, ensuring non-discrimination.
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