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Science & Technology·Easy

According to the Fiscal Responsibility and Budget Management rules, rolling targets have been set for certain indicators. Which of the following are the components of the rolling targets? 1. Fiscal deficit as a percentage of the GDP 2. Tax revenue as a percentage of the GDP 3. Foreign debt as a percentage of the GDP 4. GDP growth rate Select the correct answer using the code given below:

According to the Fiscal Responsibility and Budget Management rules, rolling targets have been set for certain indicators. Which of the following are the components of the rolling targets?

1. Fiscal deficit as a percentage of the GDP

2. Tax revenue as a percentage of the GDP

3. Foreign debt as a percentage of the GDP

4. GDP growth rate

Select the correct answer using the code given below:

Options

  1. a.

    1 and 2 only

    Correct answer
  2. b.

    1, 2 and 3 only

  3. c.

    2 and 4 only

  4. d.

    1, 2, 3 and 4

Explanation

According to the Fiscal Responsibility and Budget Management (FRBM) rules, three years rolling targets in respect of the following fiscal indicators shall be given –

• fiscal deficit as a percentage of the GDP;

• revenue deficit as a percentage of the GDP;

• primary deficit as a percentage of the GDP;

• tax revenue as a percentage of the GDP;

• non-tax revenue as a percentage of the GDP; and

• Central Government debt as a percentage of the GDP.

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