What are the reasons for the introduction of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003? Discuss critically its salient features and their effectiveness.
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Write a timed answer in the appCurrent affairs to use in your answer
Centre's fiscal deficit reaches 42.1% of the 2026-27 target in the first half of the year · 31 October 2026 · Covers one part · use it in the conclusion
Use recent targets and half-year data to judge the effectiveness of fiscal rules: targets are being met, but under pressure from subsidies and weak receipts.
- The Centre met its 2025-26 fiscal deficit target of 4.4% of GDP and set 4.3% for 2026-27.
- By September 2026 the deficit had reached 42.1% of the annual target, against 36.5% a year earlier.
- ICRA expects a slippage of about ₹1.3 to 1.4 lakh crore as subsidies rise and receipts lag.
Facts from this story you can cite
- The Centre's fiscal deficit in April to September 2026 was ₹7,14,413 crore, 42.1% of the 2026-27 BE, against 36.5% of BE a year earlier (CGA data, 30 October 2026).
- The 2026-27 target is ₹16.96 lakh crore, or 4.3% of GDP; the 2025-26 target of 4.4% of GDP was met.
- Net tax revenue reached 44.5% of BE and total expenditure 47.7% of BE in the first half.
Where it sits in the syllabus
- GS3: Government budgeting
Government Budgeting.
- GS3: Planning, growth, employment
Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
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