Fiscal Responsibility and Monetary Policy
Fiscal Responsibility and Monetary Policy
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The Fiscal Responsibility and Budget Management legislation or the FRBM Act was enacted in August 2003. The aim of the act is to set targets for the government to achieve fiscal stability, to provide RBI with the flexibility to deal with inflation, to improve the management of public funds, to strengthen fiscal prudence and to reduce fiscal deficits. But why are Indian states seeking flexibility under FRBM and How does a relaxation of the FRBM work? To find out these answers, watch this episode
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