Fiscal Responsibility and Budget Management (FRBM) Act, 2003
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Legislative action — a bill, act, or amendment that creates or modifies the legal framework. Carries binding force and shapes the rules under which citizens, institutions, and markets operate.
Summary
Legislation to institutionalise fiscal discipline by setting targets for reducing fiscal deficit to 3% of GDP and eliminating revenue deficit. Established a framework for responsible fiscal management by the central government.
Key Facts
Type Legislation
Source Historical Record (Curated)
Published Tuesday, 26 August 2003
Affected Population 1.4 billion citizens, 63 million MSMEs
Key Numbers
GDP: $3.9 trillion (2025 est.)
Fiscal deficit target: 4.4% of GDP
GST collection: Rs 1.87 lakh crore/month avg
20 million central + state government employees
Key Authorities
Key Stakeholders
Government Context
NDA III BJP-led NDA
Left Centre Right