Answer: (2) Only two statements are correct
Explanation:
Let's analyze each statement:
A. The FRBM Act made it mandatory for the Government to place Long Term Fiscal Policy Statement, Microeconomic Framework Statement, and Fiscal Policy Strategy Statement along with the Union Budget documents in Parliament annually.
- Correct. The FRBM Act requires the government to present these documents annually to promote transparency and accountability in fiscal policy.
B. The FRBM Act proposed that revenue deficit, fiscal deficit, tax revenue, and the total outstanding liabilities be projected as a percentage of Gross State Domestic Product (GDP) in the medium-term fiscal policy statement.
- Incorrect. The FRBM Act refers to the projection of these figures as a percentage of Gross Domestic Product (GDP) at the national level, not Gross State Domestic Product (GSDP).
C. Under no circumstances can the set targets of fiscal deficits and revenue be exceeded.
- Incorrect. The FRBM Act allows for deviations from the set targets under specific circumstances, such as natural disasters, national security, and severe economic downturns, making this statement inaccurate.
D. After the enactment of FRBM Act, Government has met the targets only twice till now.
- Correct. The government has struggled to consistently meet the fiscal targets set under the FRBM Act, and it is true that the targets have been met only on a limited number of occasions.
Conclusion:
Statements A and D are correct, while B and C are incorrect. Therefore, the correct answer is (2) Only two statements are correct.
