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UPSC 2010: Which one of the following was NOT stipulated in the Fiscal Responsibility and Budget Management Act, 2003?
(a)Elimination of revenue deficit by the end of the fiscal year 2007-08
(b)Non-borrowing by the Central Government from Reserve Bank of India except under certain circumstances
(c)Elimination of primary deficit by the end of the fiscal year 2008-09
(d)Fixing government guarantees in any financial year as a percentage of GDP
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Not attemptedCorrect Answer: (c) Elimination of primary deficit by the end of the fiscal year 2008-09
The FRBM Act mandated elimination of the revenue deficit by 31 March 2008, prohibited the Centre from borrowing from the RBI except under special circumstances, and capped fresh sovereign guarantees at 0.5 % of GDP in any financial year. It did NOT call for elimination of the primary deficit; that term does not appear among the statutory targets. Hence option (c) is the provision that was NOT stipulated. ([en.wikipedia.org](https://en.wikipedia.org/wiki/Fiscal_Responsibility_and_Budget_Management_Act%2C_2003?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2010 Indian Economy question?▼
The correct answer is option (c): Elimination of primary deficit by the end of the fiscal year 2008-09. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2010, GS Paper 1, as Question 26. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Fiscal Policy & Budget?▼
UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.