MacroScan - Fiscal responsibility and democratic accountability

Table 1: Requirements of FRBM
	FRBM Act/FRBM Rules
Revenue deficit
Date for elimination	31-3-2008 (now 31-3 2009)
Minimum annual reduction	0.5 % of GDP
Fiscal deficit
Ceiling	3 % of GDP by 31-03-2008
Minimum annual reduction	0.3 % of GDP
Total debt	Increase capped at 9 % of GDP in 2004-05
Annual reduction	1 % of GDP
RBI primary market purchases of GOI bonds	To cease on 1-4-2006