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  • Along with the Budget, the Finance Minister also places other documents before the Parliament which includes “The Macro Economic Framework Statement”. The aforesaid document is presented because this is mandated by

Along with the Budget, the Finance Minister also places other documents before the Parliament which includes “The Macro Economic Framework Statement”. The aforesaid document is presented because this is mandated by

a . Long-standing parliamentary convention 

b . Article 112 and Article 110 (1) of the Constitution of India

c. Article 113 of the Constitution of India 

d . Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Answer: d

Explanation:

Along with the budget, three policy statements are mandated by the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA).

The Medium-term Fiscal Policy Statement sets a three-year rolling target for specific fiscal indicators and examines whether revenue expenditure can be financed through revenue receipts on a sustainable basis and how productively capital receipts including market borrowings, are being utilised. 

The Fiscal Policy Strategy Statement sets the priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures.

The Macroeconomic Framework Statement assesses the prospects of the economy with respect to the GDP growth rate, fiscal balance of the central government and external balance.

Hence, option d is correct.

Read: Previous Year UPSC Polity Questions (PYQs) With Explanation 2020

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