Open AccessFRBM ACT- A STEP TOWARDS FISCAL DISCIPLINE
Author(s) -
Shishir Kumar Gujrati
Publication year - 2017
Publication title -
management insight
Language(s) - English
Resource type - Journals
eISSN - 2456-0936
pISSN - 0973-936X
DOI - 10.21844/mijia.v13i01.8373
Subject(s) - order (exchange) , government (linguistics) , investment (military) , business , term (time) , accounting , economic policy , finance , economics , public economics , political science , law , linguistics , philosophy , physics , quantum mechanics , politics
A developing economy has to spent more to increase the level of disposable income in the hands of its citizens. It has to undertake various projects which can provide long term benefits to the people and can raise their standard of living. Such projects involves huge amount of investment which are met through borrowings. Reckless borrowings results in unproductive interest expenditure, thereby depriving the nation with most of its income. In order to fix the responsibility with the government and to prevent it from unnecessary borrowings for unproductive purposes, the FRBM Act was enacted in 2003. However, due to the international financial crisis from 2007, the implementation of this act was postponed and later on suspended in 2009. The current paper attempts to highlight the features and the recommendations of this act.