FRBMA, 2003 enjoins the Central Government to reduce fiscal deficit by ____% of GDP or more every year from 2004-05.

0.3

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0.8

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1.5

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0.6

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Solution

The correct option is D 0.3
The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget. It was enjoined with Central Government to reduce fiscal deficit by 0.3 % of the gross domestic product or more every year from 2004-05, and to bring it down to 3% of GDP by 2008.

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