Fiscal Responsibility and Budgetary Management Rules, 2004: Have the Fiscal Targets Been Achieved?

Abstract

The article deals with the Fiscal Responsibility and Badgetary Management Rule 2004.  The fiscal deficit in India has been a subject of serious investigation ever since the introduction of New Economic Reforms, 1991.  The article gives a brief account of FRBM Rule, 2004.  The investigation into the question whether the fiscal deficits managed as expected or not is based on the rule and acceptable fiscal limited prescribed in the FRBM Rule, 2004.  The data analyses and findings from it suggest that the gross fiscal deficits could not be manage as expected though the GDP growth rate was much higher during the period taken for consideration.  It is concluded that given the state of Indian economy, management of fiscal deficits on account of controlling revenue and capital expenditures is still a matter to be considered.