- The N.K. Singh FRBM Review Committee recommended specific debt-to-GDP targets for the Centre and States. - Central government liabilities are typically higher than State government liabilities as a percentage of GDP. - States need Central government's consent to raise loans if they have outstanding loans from the Centre.
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 (combined) 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 49% of GDP of the State 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 ?
Asked in UPSC IAS 2018 · Topic: Fiscal Policy & Revenue (Fiscal Responsibility and Budget Management (FRBM) Act)
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