Polity
2020
Parliament Structure

Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by

B.Article 112 and Article 110(1) of the Constitution of India
D.Provisions of the Fiscal Responsibility and Budget Management Act, 2003
C.Article 113 of the Constitution of India
A.Long standing parliamentary convention

Correct Answer: Option D

The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003.

The objectives of the FRBM Act are to ensure:

  • Inter-generational equity in fiscal management
  • Long-run macroeconomic stability
  • Better coordination between fiscal and monetary policy
  • Transparency in the fiscal operations of the Government.

The FRBM Act mandates the presentation of the following documents before the Parliament:

  • Medium Term Expenditure Framework Statement (MTEF)
  • Medium-Term Fiscal Policy Statement
  • Fiscal Policy Strategy Statement
  • Macroeconomic Framework Statement

Hence, the Macro Economic Framework Statement is presented because it is mandated by the provisions of the Fiscal Responsibility and Budget Management Act, 2003.