UPSSSC PET 2026 (30 Oct Shift 1)
In which year was the Fiscal Responsibility and Budget Management (FRBM) Act enacted ?
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Answer: Option C — 2003
Detailed Solution
The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003, so option C is correct. It was passed in August 2003 and brought into force from 2004, and its aim was to bring fiscal discipline, eliminate the revenue deficit and reduce the fiscal deficit to 3 percent of GDP. The Bill was first introduced in 2000 but became law in 2003, so 1999, 2001 and 2005 are not years of enactment. The N.K. Singh Committee reviewed the Act in 2016-17 and suggested limiting government debt to 60 percent of GDP.
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Budget, Fiscal Policy & Taxation — UPSSSC PET Preparation
This question tests your understanding of Budget, Fiscal Policy & Taxation, a key topic in the UPSSSC PET General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers the Union Budget and fiscal policy: revenue and capital budgets, types of deficits (fiscal, revenue and primary), the FRBM Act, direct and indirect taxes, the Goods and Services Tax (GST) and the GST Council, and the role of the Finance Commission. Common questions ask how each deficit is defined, which article covers the annual financial statement (Article 112), which taxes GST replaced, and the difference between direct and indirect taxes. GST was introduced on 1 July 2017 through the 101st Constitutional Amendment. Budget figures change every year, so check recent numbers in current affairs. Practise the budget, fiscal policy and taxation questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.