ECONOMICS Chapter Notes - Chapter CHAPTER 1: Raja Chelliah, Vijay Kelkar, Effective Demand

• School: Mahatma Gandhi University - Kerala
• Department: Humanities
• Course: ECONOMICS

Document Summary

Fiscal responsibility and budget management (frbm) act 2003. The frbm bill / act provide rules for fiscal responsibility of the central government. Frbm act 2003 (as amended) became effective from july 5, 2004. Under this act, rules are framed relating to fiscal responsibility of the central government, which came into force on. The main objectives of frbm bill / act are:: to reduce fiscal deficit, to adopt prudent debt management, to generate revenue surplus. Features of frbm act 2003: revenue deficit. The first important feature of amended frbm bill 2000 or frbm act 2003 is that the central government should take certain specific measures related with reduction of revenue deficit. March 31, 2009: once revenue deficit becomes zero the central government should build up surplus amount of revenue which it may utilised for discharging liabilities in excess of assets, fiscal deficit.