Published on: August 11, 2021
BBMP UNDER FRBM
BBMP UNDER FRBM
buy legit isotretinoin What is in news : The BBMP will soon be brought under the ambit of a act in line with Fiscal Responsibility and Budget Management Act to ensure financial discipline
http://crossfitraze.com/welcome-crossfit-games-17-2/ What is Fiscal Discipline: A method that envisages balance between the Government expenditure and revenue in an economy
Why is it important:
- If not maintained, it can lead to depreciation of currency and inflation in the economy
- Will help in maintaining an overall stability in the economy
How is it brought :
- Measures of FISCAL POLICY
- In India – Budget
- Was enacted in August 2003.
- Aims to make the Central government responsible for ensuring inter-generational equity in fiscal management and long-term macro-economic stability.
- Envisages the setting of limits on the Central government’s debt and deficits.
- Limited the fiscal deficit to 3% of the GDP.
- Ensure that the States too are financially prudent, the 12th Finance Commission’s recommendations in 2004 linked debt relief to States with their enactment of similar laws.
- States have since enacted their own respective Financial Responsibility Legislation, which sets the same 3% of Gross State Domestic Product (GSDP) cap on their annual budget deficits.
- Mandates greater transparency in fiscal operations of the Central government and the conduct of fiscal policy in a medium-term framework.
- Budget of the Union government includes a Medium Term Fiscal Policy Statement that specifies the annual revenue and fiscal deficit goals over a three-year horizon.
- Rules for implementing the Act were notified in July 2004.
- Rules were amended in 2018, and most recently to the setting of a target of 3.1% for March 2023.
- The NK Singh committee (set up in 2016) recommended that the government should target a fiscal deficit of 3% of the GDP in years up to March 31, 2020 cut it to 2.8% in 2020-21 and to 2.5% by 2023.