When did the Government of Uttarakhand pass the Fiscal Responsibility and Budget Management Act?

Question

Question

This question was previously asked in

UKPSC Combined Upper PCS (Prelims) Exam (General Studies) Official Paper-I (Held On: 14 Jul, 2024)

Answer 1

The correct answer is option 3.

Key Points

The Government of Uttarakhand passed the Fiscal Responsibility and Budget Management (FRBM) Act in 2005. Hence, option 3 is correct.
This legislation, known as the Uttarakhand FRBM Act, 2005 (Uttarakhand Act No. 22 of 2005), was enacted to ensure fiscal stability and sustainability within the state.
It aimed to enhance the scope for improving social and physical infrastructure and human development by achieving sufficient revenue surplus, reducing fiscal deficit, and removing impediments to the effective conduct of fiscal policy and prudent debt management.
Key Objectives of the Uttarakhand FRBM Act, 2005:
- Fiscal Stability and Sustainability: To maintain a stable and sustainable fiscal environment in the state.
- Revenue Surplus: To achieve a sufficient revenue surplus to finance capital expenditure.
- Fiscal Deficit Reduction: To reduce the fiscal deficit to a manageable level.
- Prudent Debt Management: To manage the state's debt in a prudent manner.
- Transparency: To enhance transparency in fiscal operations.
Implementation and Amendments:
- The Act came into force on October 27, 2005.
- It has been amended in subsequent years to incorporate recommendations from various Finance Commissions and to align with evolving fiscal policies.