RAS question
FRBM (Fiscal Responsibility and Budget Management) Act in Rajasthan was enacted in:
Correct answer: (B) 2005.
Rajasthan enacted the Rajasthan Fiscal Responsibility and Budget Management Act in May 2005.
Explanation
Rajasthan enacted the Fiscal Responsibility and Budget Management framework in 2005: the CAG's Rajasthan State Finances report says the state government, responding to Twelfth Finance Commission recommendations, legislated the Rajasthan Fiscal Responsibility and Budget Management Act in May 2005. The Act is therefore not just a generic fiscal-discipline label; it is the state law used to judge Rajasthan's public finances. Its stated aims were progressive elimination of revenue deficit, reducing fiscal deficit to not more than 3 per cent of GSDP, and prudent debt management through limits on outstanding debt relative to GSDP. That is why 2005 is the year attached to the Rajasthan FRBM Act in RAS Economy questions.
Why the other options are wrong
- (A) 2010 is wrong because the CAG overview places the legislation in May 2005, before that year.
- (C) 2015 is wrong because 2015 is the year of the cited CAG State Finances audit report, while the Act it discusses was legislated in May 2005.
- (D) 2000 is wrong because the source links the Act to the state's response to Twelfth Finance Commission recommendations and states that the legislation occurred in May 2005.
Concept
This tests Rajasthan public finance under the Economy of Rajasthan syllabus: the FRBM Act is the legal anchor for questions on revenue deficit, fiscal deficit and debt discipline. It recurs because the Act's enactment year and targets are used in official fiscal-audit analysis of Rajasthan.