Fiscal Responsibility and Budget Management (FRBM) Act, 2003
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 aims to ensure fiscal discipline, reduce deficits, and promote financial stability in India. Enacted in 2003 and effective from July 5, 2004, the Act requires the government to submit documents like the Medium-Term Fiscal Policy Statement and Macroeconomic Framework Statement alongside the Union Budget. It allows exceptions during emergencies, such as the COVID-19 pandemic. Long-term goals include reducing the fiscal deficit below 4.5% by 2025-26. The Act emphasizes transparency, accountability, and sustainable debt management, with amendments adapting it to evolving economic challenges.
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