{"id":1488,"date":"2025-03-05T18:12:08","date_gmt":"2025-03-05T12:42:08","guid":{"rendered":"https:\/\/theiashub.com\/upsc\/?p=1488"},"modified":"2025-10-28T16:39:26","modified_gmt":"2025-10-28T11:09:26","slug":"frbm-act","status":"publish","type":"post","link":"https:\/\/theiashub.com\/upsc\/frbm-act\/","title":{"rendered":"FRBM Act 2003: Objectives, Features, and Recent Amendments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<label class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/label>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #127abf;color:#127abf\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #127abf;color:#127abf\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#What_is_the_FRBM_Act\" >What is the FRBM Act?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#Full_Form_of_FRBM_Act\" >Full Form of FRBM Act<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#Features_of_FRBM_Act\" >Features of FRBM Act<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#FRBM_Act_Objectives\" >FRBM Act Objectives<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#FRBM_Act_Recent_Amendment\" >FRBM Act Recent Amendment<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#FRBM_Act_Impact\" >FRBM Act Impact<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/theiashub.com\/upsc\/frbm-act\/#FRBM_Act_FAQs\" >FRBM Act FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">The <\/span><b>FRBM Act<\/b><span style=\"font-weight: 400;\">, or <\/span><b>Fiscal Responsibility and Budget Management Act<\/b><span style=\"font-weight: 400;\">, is a key law aimed at ensuring financial stability in India. Enacted in 2003, it sets targets for reducing fiscal deficits and government debt. The act promotes fiscal discipline, enhances transparency, and strengthens financial management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article explores <\/span><b>what the FRBM Act is<\/b><span style=\"font-weight: 400;\">, its <\/span><b>full form<\/b><span style=\"font-weight: 400;\">, <\/span><b>features<\/b><span style=\"font-weight: 400;\">, <\/span><b>objectives<\/b><span style=\"font-weight: 400;\">, and <\/span><b>recent amendments<\/b><span style=\"font-weight: 400;\"> that impact India\u2019s economy.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_FRBM_Act\"><\/span><b>What is the FRBM Act?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>FRBM Act<\/b><span style=\"font-weight: 400;\"> is a legal framework designed to control government borrowing and spending. It mandates fiscal responsibility by setting targets for reducing fiscal and revenue deficits. The act ensures that governments do not overspend beyond sustainable limits, preventing excessive debt accumulation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The need for the FRBM Act arose from rising fiscal deficits in the 1990s, which threatened India\u2019s economic stability. To address this, the government introduced the act in 2003, requiring gradual deficit reduction while promoting economic growth.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Full_Form_of_FRBM_Act\"><\/span><b>Full Form of FRBM Act<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>full form of FRBM Act<\/b><span style=\"font-weight: 400;\"> is <\/span><b>Fiscal Responsibility and Budget Management Act<\/b><span style=\"font-weight: 400;\">. It highlights its core purpose of maintaining financial responsibility in government operations and ensuring a balanced budget.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Features_of_FRBM_Act\"><\/span><b>Features of FRBM Act<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>features of FRBM Act<\/b><span style=\"font-weight: 400;\"> focus on fiscal discipline, transparency, and accountability. Key aspects include:<\/span><\/p>\n<ol>\n<li><b> Fiscal Deficit Reduction Targets<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The act mandates a phased reduction in the fiscal deficit, limiting the government\u2019s total borrowing. Initially, it set a target of reducing the fiscal deficit to 3% of GDP.<\/span><\/p>\n<ol start=\"2\">\n<li><b> Revenue Deficit Control<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The government must eliminate the revenue deficit by ensuring that borrowing is used only for capital expenditure and not for routine expenses.<\/span><\/p>\n<ol start=\"3\">\n<li><b> Transparency Measures<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The act requires regular financial reporting, including annual and mid-year reviews, to ensure transparency in public finance.<\/span><\/p>\n<ol start=\"4\">\n<li><b> Debt Management Framework<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">It sets limits on total government liabilities, ensuring that borrowing remains within sustainable limits.<\/span><\/p>\n<ol start=\"5\">\n<li><b> Escape Clause Provision<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">During emergencies like economic recessions, natural disasters, or national security threats, the government can temporarily exceed fiscal deficit limits.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FRBM_Act_Objectives\"><\/span><b>FRBM Act Objectives<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>FRBM Act objectives<\/b><span style=\"font-weight: 400;\"> aim to improve financial management and economic stability. Major objectives include:<\/span><\/p>\n<ol>\n<li><b> Ensuring Fiscal Stability<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">By reducing deficits and controlling borrowing, the act prevents economic instability and unsustainable debt accumulation.<\/span><\/p>\n<ol start=\"2\">\n<li><b> Improving Public Expenditure Management<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The act ensures that government funds are used efficiently, prioritizing long-term investments over short-term consumption.<\/span><\/p>\n<ol start=\"3\">\n<li><b> Enhancing Transparency<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Regular reporting and accountability mechanisms promote transparency in financial management, ensuring responsible governance.<\/span><\/p>\n<ol start=\"4\">\n<li><b> Boosting Economic Growth<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">By maintaining financial discipline, the act creates a stable economic environment conducive to long-term growth.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FRBM_Act_Recent_Amendment\"><\/span><b>FRBM Act Recent Amendment<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>FRBM Act recent amendment<\/b><span style=\"font-weight: 400;\"> brought changes to fiscal targets and borrowing guidelines. The most significant amendment came in <\/span><b>2018<\/b><span style=\"font-weight: 400;\">, based on recommendations from the <\/span><b>N.K. Singh Committee<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key changes in the amendment include:<\/span><\/p>\n<ol>\n<li><b> Revised Fiscal Deficit Targets<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The amendment set a new target of <\/span><b>3% fiscal deficit by 2020-21<\/b><span style=\"font-weight: 400;\">, with flexibility based on economic conditions.<\/span><\/p>\n<ol start=\"2\">\n<li><b> Focus on Debt-to-GDP Ratio<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Instead of just fiscal deficit targets, the amendment introduced a target of <\/span><b>40% debt-to-GDP ratio<\/b><span style=\"font-weight: 400;\"> for the central government by 2024-25.<\/span><\/p>\n<ol start=\"3\">\n<li><b> Flexibility in Fiscal Targets<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The government can deviate from deficit targets by <\/span><b>0.5% of GDP<\/b><span style=\"font-weight: 400;\"> in specific conditions like national security threats, economic slowdowns, or natural disasters.<\/span><\/p>\n<ol start=\"4\">\n<li><b> Elimination of Revenue Deficit Targets<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The amendment removed the strict revenue deficit targets, allowing more flexibility in fiscal management.<\/span><\/p>\n<div id=\"metaslider-id-5575\" style=\"width: 100%;\" class=\"ml-slider-3-107-0 metaslider metaslider-flex metaslider-5575 ml-slider has-dots-nav ms-theme-default-base\" role=\"region\" aria-label=\"New Slideshow\" data-height=\"300\" data-width=\"700\">\n    <div id=\"metaslider_container_5575\">\n        <div id=\"metaslider_5575\">\n            <ul aria-live='off' class='slides'>\n                <li style=\"display: block; width: 100%;\" class=\"slide-5579 ms-image \" aria-roledescription=\"slide\" data-date=\"2025-10-11 11:47:58\" data-filename=\"400-X-180cdr-scaled-700x300.jpg\" data-slide-type=\"image\"><a href=\"https:\/\/theiashub.com\/courses\/mains\/upsc-qep-2026-batch-5-english\" target=\"_self\" aria-label=\"View Slide Details\" class=\"metaslider_image_link\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/theiashub.com\/upsc\/wp-content\/uploads\/2025\/10\/400-X-180cdr-scaled.jpg?resize=700%2C300&#038;ssl=1\" height=\"300\" width=\"700\" alt=\"\" class=\"slider-5575 slide-5579 msDefaultImage\" title=\"400 X 180cdr\" \/><\/a><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-5580 ms-image \" aria-roledescription=\"slide\" data-date=\"2025-10-11 11:47:58\" data-filename=\"pocket-notes-website-400x180-1-scaled-700x300.jpg\" data-slide-type=\"image\"><a href=\"https:\/\/theiashub.com\/courses\/upsc-cse-books\/qep-pocket-notes-2.0\" target=\"_self\" aria-label=\"View Slide Details\" class=\"metaslider_image_link\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/theiashub.com\/upsc\/wp-content\/uploads\/2025\/10\/pocket-notes-website-400x180-1-scaled.jpg?resize=700%2C300&#038;ssl=1\" height=\"300\" width=\"700\" alt=\"\" class=\"slider-5575 slide-5580 msDefaultImage\" title=\"pocket-notes-website-400x180\" \/><\/a><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-5581 ms-image \" aria-roledescription=\"slide\" data-date=\"2025-10-11 11:47:58\" data-filename=\"web-site-banner-toppers-book.-400x180-1-scaled-700x300.jpg\" data-slide-type=\"image\"><a href=\"https:\/\/theiashub.com\/courses\/upsc-cse-books\/toppers-handwritten-upsc-pyq-4-books\" target=\"_self\" aria-label=\"View Slide Details\" class=\"metaslider_image_link\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/theiashub.com\/upsc\/wp-content\/uploads\/2025\/10\/web-site-banner-toppers-book.-400x180-1-scaled.jpg?resize=700%2C300&#038;ssl=1\" height=\"300\" width=\"700\" alt=\"\" class=\"slider-5575 slide-5581 msDefaultImage\" title=\"web site banner toppers book. 400x180\" \/><\/a><\/li>\n            <\/ul>\n        <\/div>\n        \n    <\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"FRBM_Act_Impact\"><\/span><b>FRBM Act Impact<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>FRBM Act<\/b><span style=\"font-weight: 400;\"> has significantly influenced India\u2019s fiscal policy. It has led to:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduction in Fiscal Deficits<\/b><span style=\"font-weight: 400;\"> \u2013 The act helped lower fiscal deficits, improving economic stability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Better Financial Planning<\/b><span style=\"font-weight: 400;\"> \u2013 Governments now follow structured fiscal planning, ensuring sustainable spending.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhanced Investor Confidence<\/b><span style=\"font-weight: 400;\"> \u2013 Stable fiscal policies attract foreign and domestic investment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Challenges During Economic Crises<\/b><span style=\"font-weight: 400;\"> \u2013 The rigid deficit targets sometimes restrict government spending during downturns, requiring amendments.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The <\/span><b>FRBM Act<\/b><span style=\"font-weight: 400;\"> plays a crucial role in ensuring fiscal discipline in India. By setting targets for deficit reduction and debt control, it promotes financial stability and long-term economic growth. The <\/span><b>recent amendment<\/b><span style=\"font-weight: 400;\"> introduced more flexibility, allowing the government to manage economic challenges effectively. Understanding the <\/span><b>features of FRBM Act<\/b><span style=\"font-weight: 400;\">, its <\/span><b>objectives<\/b><span style=\"font-weight: 400;\">, and <\/span><b>amendments<\/b><span style=\"font-weight: 400;\"> is essential for grasping India\u2019s financial policy framework. The act remains a cornerstone of responsible governance, balancing economic growth with financial prudence.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FRBM_Act_FAQs\"><\/span><b>FRBM Act FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<style>#sp-ea-1487 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-1487.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-1487.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #444;}#sp-ea-1487.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-1487.sp-easy-accordion>.sp-ea-single {background: #eee;}#sp-ea-1487.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}.sp-ea-one.sp-easy-accordion .sp-ea-single .ea-header a {\r\n  padding: 7px;\r\n  background: #fff;\r\n}\r\n\r\n.sp-easy-accordion .sp-ea-single .ea-header a {\r\n  font-size: 1rem;\r\n}\r\n.sp-ea-one.sp-easy-accordion .sp-ea-single .ea-header a .ea-expand-icon {\r\n  font-size: 1rem;\r\n}\r\n\r\n.sp-easy-accordion .sp-ea-single .ea-header a .ea-expand-icon {\r\n  margin-right: 0px;\r\n}\r\n\r\n.sp-easy-accordion .sp-ea-single{\r\n background: #fff;\r\n}\r\n\r\n.ea-expand a{\r\n  background: #cfe2ff !important;\r\n}\r\n\r\n.sp-easy-accordion{\r\n  margin-bottom: 1rem;\r\n  margin-top: 1rem;\r\n}<\/style><div id=\"sp_easy_accordion-1741177780\"><div id=\"sp-ea-1487\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-14870\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse14870\" aria-controls=\"collapse14870\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> What is the FRBM Act?<\/a><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse14870\" data-parent=\"#sp-ea-1487\" role=\"region\" aria-labelledby=\"ea-header-14870\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">\u00a0The FRBM Act, or Fiscal Responsibility and Budget Management Act, is a law enacted in 2003 to ensure fiscal discipline in India. It sets targets for reducing fiscal and revenue deficits, limiting government borrowing, and promoting financial stability.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-14871\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse14871\" aria-controls=\"collapse14871\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the full form of FRBM Act?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse14871\" data-parent=\"#sp-ea-1487\" role=\"region\" aria-labelledby=\"ea-header-14871\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">\u00a0The full form of FRBM Act is <\/span><b>Fiscal Responsibility and Budget Management Act<\/b><span style=\"font-weight: 400\">. It emphasizes responsible fiscal management by the government to maintain economic stability.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-14872\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse14872\" aria-controls=\"collapse14872\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> . What are the key features of the FRBM Act?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse14872\" data-parent=\"#sp-ea-1487\" role=\"region\" aria-labelledby=\"ea-header-14872\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">\u00a0The FRBM Act includes fiscal deficit reduction targets, revenue deficit control, transparency measures, a debt management framework, and an escape clause allowing deviations during economic crises. These features ensure financial discipline and sustainable economic policies.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-14873\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse14873\" aria-controls=\"collapse14873\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the objectives of the FRBM Act?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse14873\" data-parent=\"#sp-ea-1487\" role=\"region\" aria-labelledby=\"ea-header-14873\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">\u00a0The main objectives of the FRBM Act are to ensure fiscal stability, improve public expenditure management, enhance transparency, and support long-term economic growth by controlling government deficits and debt.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-14874\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse14874\" aria-controls=\"collapse14874\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the most recent amendment to the FRBM Act?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse14874\" data-parent=\"#sp-ea-1487\" role=\"region\" aria-labelledby=\"ea-header-14874\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The most recent amendment, based on the N.K. Singh Committee\u2019s recommendations in 2018, introduced a 40% debt-to-GDP target, revised fiscal deficit limits, and allowed a 0.5% deviation in deficit targets during economic challenges.<\/span><\/p><\/div><\/div><\/div><\/div><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FRBM Act aims to maintain fiscal discipline in India by limiting deficits and government borrowing. Learn about its objectives, features, amendments, and significance.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1488","post","type-post","status-publish","format-standard","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts\/1488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/comments?post=1488"}],"version-history":[{"count":2,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts\/1488\/revisions"}],"predecessor-version":[{"id":6478,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts\/1488\/revisions\/6478"}],"wp:attachment":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/media?parent=1488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/categories?post=1488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/tags?post=1488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}