Question
As per the FRBM Act 2003, Central Government shall endeavour to ensure that:
Select the correct answer using the code given below:
- The general government debt shall not exceed 60% of GDP by 2024-25
- The central government debt shall not exceed 40% of GDP by 2024-25
- The central government shall not give additional guarantees on loans in excess of 0.5% of GDP in any financial year
Select the correct answer using the code given below:
Answer: Option D
Answer: (d)
The N.K. Singh committee recommendations of Central Govt. debt of 40% of GDP and General Government (Centre and States combined) debt of 60% of GDP has been put under the FRBM Act 2003 by introducing an amendment through Finance Act 2018.
The additional guarantee of 0.5% of GDP was there from the beginning of the FRBM Act 2003.
Basically, the central government acts as a guarantor when PSUs borrow and States borrow from abroad.
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Answer: (d)
The N.K. Singh committee recommendations of Central Govt. debt of 40% of GDP and General Government (Centre and States combined) debt of 60% of GDP has been put under the FRBM Act 2003 by introducing an amendment through Finance Act 2018.
The additional guarantee of 0.5% of GDP was there from the beginning of the FRBM Act 2003.
Basically, the central government acts as a guarantor when PSUs borrow and States borrow from abroad.
Was this answer helpful ?
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