AN ANALYSIS ON FISCAL DEFICIT IN INDIA AND THE EFFECTIVENESS OF FRBM ACT

Author Name: Dr. V. Kokila

Volume/Issue: 04/03

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://doi-ds.org/doilink/09.2023-75353571/UIJIR

Affiliation:

1. Assistant Professor of Economics, Department of Economics, University of Madras, Chepauk, Chennai

ABSTRACT

Fiscal deficit is the most significant concept in public finance and in recent times it is also a much in discussion among the researchers and academicians. It measures the Government’s spending over the revenue it receives from taxes and non-tax revenues. This paper made a modest attempt to study the fiscal deficit in India and the effectiveness of FRBM Act. As the FRBM Act 2003 has been introduced to limit the size of the fiscal deficit. Fiscal deficit is one of the major issue in the economy which arises due to high spending by the government over revenue through the high borrowings from internal and external sources. FRBM act sets the percentage limit in fiscal deficit gap which is 3 percentage. This study is based on secondary data that has been gathered from RBI Database and the period of the study is 2010-11 to 2021-22.

Key words: Fiscal deficit, Types of deficit and FRBM Act 2003.