GS3 › Public Finance and the Budget

Revision note: The Union Budget, Fiscal Policy and the FRBM Framework

  • Art 112 (Annual Financial Statement), 113, 114, 110 (Finance Bill), 265, 266 (CFI, Public Account), 267 (Contingency Fund)
  • Budget on 1 Feb since 2017; Railway Budget merged 2017; plan/non-plan abolished 2017–18
  • Fiscal deficit = total expenditure − (revenue receipts + non-debt capital receipts); primary = FD − interest
  • FD path: 9.2% (2020–21) → 4.8% (2024–25 RE) → 4.4% (2025–26 BE); debt target ~50% ±1% by 2031
  • FRBM 2003; N.K. Singh Committee 2017 (debt 60% general government; Fiscal Council not created); 2018 amendment; escape clause
  • Capex multiplier > revenue spending multiplier
Revision card summarising The Union Budget, Fiscal Policy and the FRBM Framework
One-page visual summary of the key points to revise.

Source: https://upscprep.in/upsc/gs3/public-finance-and-the-budget/the-union-budget-fiscal-policy-and-the-frbm-framework/ · UPSCPrep.in

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