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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1262 |
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Two main factors affecting the increase of the fiscal deficit from 1996-97 to 2001-02 are reduction in the total tax revenue, which fell from 10.1% of GDP in 1990-91 to only 8.2% of GDP in 2001-02, and the inefficient expenditure restructuring / management.
As a reaction to the continuing increase of the fiscal deficit, the Fiscal Responsibility and Budget Management Bill was proposed in 2000...
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The bill, however, took some time to be passed, while the situation got worse before the bill finally was passed as an act (FRBMA) and implemented in mid 2003. In summary, FRBMA was created to: provide a legal and institutional framework to bring down the fiscal deficit, contain the growth of public debt and stabilize debt as a proportion of GDP, and bind future government to a pre-specified path of fiscal consolidation...
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