- Enacted in 2004.
- To control the government debtors RD and borrowing from RBI.
- ↓Of 0.3% in RD and 0.5% ↓ in FD beginning of 2004-05.
- Quarterly government shall place before both houses of parliament.
- Finance minister also make recommend before both houses of parliaments.
- Elimination of RD and ↓in 3% of GDP of FD by 2009, March 31.
- Prohibits government to lend money from RBI.
- RBI play anonymous role as per as exceptional situation like natural calamities.
- 1994, New Zealand enacted fiscal responsibility and management act.
- Charter of budget honesty by Australia enacted.
- U.K has fiscal stability act too.
- FRBM control the more debt, higher encouragement in plan expenditure, controls the liquidity in market, fiscal discipline and it makes the system more transparency.
Main Features of FRBM Act 2003 – UPSC
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