Fiscal policy is a set of measures used by a government to influence the economy. These measures can affect how much the government spends and how much it t...
Fiscal policy is a set of measures used by a government to influence the economy. These measures can affect how much the government spends and how much it taxes.
Deficit: A fiscal deficit occurs when a country spends more than it takes in from taxes. When a country has a high deficit, it will have to borrow money to finance its spending.
Public debt: Public debt is the total amount of money that a country owes to its citizens and businesses. Governments can raise public debt by selling bonds or by borrowing money from international lenders.
Financial Resources and Basic Income Mandate (FRBM Act): The Financial Resources and Basic Income Mandate (FRBM Act of 2013 is a piece of legislation that has significantly impacted India's fiscal policy. The Act aims to achieve fiscal stability by encouraging the reduction of fiscal deficit and promoting sustainable growth.
The FRBM Act sets a limit on the fiscal deficit to be no more than 3% of GDP. It also requires the government to achieve a fiscal deficit of 0.3% of GDP by 2025.
The Act also provides a framework for the government to implement a variety of measures to achieve fiscal stability, including tax reforms, investment in infrastructure, and social welfare programs. The Act also requires the government to conduct a regular fiscal sustainability report to track progress towards fiscal stability