Question
Consider the following statements
1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combine(d) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
2. The Central Government has domestic liabilities of 21% of GDP as compared to that of war of GDP of the State 2 Governments.
3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer:
C
To suggest corrections, send feedback using feedback button in top menu.
To suggest corrections, use feedback icon on top menu.
Explanation:
Statement 1 is correct. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report did recommend a debt to GDP ratio of 60% for the general government (combined) by 2023, with 40% for the Central Government and 20% for the State Governments.
Statement 2 is incorrect. The statement is unclear and seems to contain an error. The comparison between the Central Government's domestic liabilities and "that of war of GDP of the State Governments" is not clear or accurate.
Statement 3 is correct. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. This requirement ensures coordination and control over the borrowing activities of the State Governments.