3 Indian & AP Economy and Planning · 3.4.5 Public finance

3.4.5.5 Public debt and the FRBM framework: the 2003 Act, 2018 amendments and the debt anchor

The FRBM Act, 2003 put legal limits on the Centre's deficit and debt; the 2018 amendments added a debt target, and from 2026-27 the Centre follows a debt-to-GDP anchor of 50 ± 1% by 2030-31.

  • APPSC Group 1
  • Advanced level
  • 6 min read
  • Full course

Key terms

  • FRBM Act
  • N.K. Singh committee
  • debt anchor
  • public debt
  • escape clause
  • fiscal council
  • Ways and Means Advances
  • Treasury Bills
  • Article 292

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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