Section 4 of FRBM Act : Section 4: Fiscal Management Principles

Explanation using Example

Imagine the government of India is preparing its annual budget for the financial year 2022-2023. The Finance Minister, in line with Section 4 of The Fiscal Responsibility and Budget Management Act, 2003, is focused on ensuring that the fiscal deficit does not exceed the target of three percent of the GDP by March 31, 2021, as per clause (a).

However, the country faces an unexpected natural calamity—a severe cyclone—that causes extensive damage. The government needs to spend significantly on relief and ...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.