The Fiscal Responsibility and Budget Management Act

The Fiscal Responsibility and Budget Management (FRBM) Act is Indian legislation aimed at maintaining financial discipline in government finances. It sets rules for reducing fiscal deficits, controlling public debt, and improving budget transparency. The goal is to ensure that the government spends responsibly, keeps borrowing within sustainable limits, and maintains overall economic stability. By adhering to these targets, the act helps promote confidence among investors, supports economic growth, and prevents excessive government borrowing that could lead to inflation or financial instability.