Which of the following statement(s) is/are correct?
A. Only I
B. Only II
C. Both I and II
D. Neither I nor II
Answer:C
Which of the following statement(s) is/are correct?
A. Only I B. Only II C. Both I and II D. Neither I nor II
Explanation: The problem of fiscal management is the lure of eternal procrastination. To advance rather than defer the desirable goal of fiscal prudence, India like several other countries, embarked in the mid-2000s on an ambitious project of fiscal consolidation, adopting fiscal rules aimed at curbing fiscal deficits. The most well-known and best-studied part of this project was the Fiscal Responsibility and Budget Management (FRBM) Act, adopted by the central government in 2003. This Act was mirrored by Fiscal Responsibility Legislation (FRL) adopted in the states, laws that were no less important than the FRBM, since states account for roughly half the general government deficit. Other work has shown that states’ fiscal position improved after 2005 and that some of this improvement can be attributed to the FRL.