The Fiscal Responsibility and Budget Management Act, 2003

The Fiscal Responsibility and Budget Management Act, 2003 is an act of the Indian Parliament that seeks to institutionalize financial discipline, reduce fiscal deficit, and improve macroeconomic management in the country. The act lays down rules and guidelines for the central and state governments to follow while managing their finances. It sets targets for fiscal deficit, revenue deficit, and outstanding debt, and requires the government to present a Medium Term Fiscal Policy Statement and a Fiscal Policy Strategy Statement. The act also mandates the creation of a Fiscal Responsibility and Budget Management Committee to review the government's fiscal performance and provide recommendations. The committee also provides for a Debt Consolidation and Relief Facility to help states manage their debt. The act is an important tool to ensure transparency and accountability in fiscal management and promote fiscal discipline among the government.