Topic Details (Notes format)

Finance Ministry and Fiscal Responsibility

Subject: Polity

Book: Indian Polity by M. Laxmikanth

At the Union level, the Finance Ministry crafts budgetary policies, mobilizes resources, and manages public debt. The FRBM Act (2003) mandates fiscal discipline—limiting fiscal deficit, controlling borrowings, and ensuring medium-term fiscal frameworks. States have parallel FRBM laws. These measures aim at macroeconomic stability, reducing inflationary pressures, and facilitating growth. However, off-budget liabilities and populist schemes sometimes strain compliance. Union-states coordinate borrowing limits, guided by Finance Commission recommendations. The ministry’s regulatory role extends to banking and insurance. Mastering these aspects clarifies the governance of public finances, crucial for stable economic conditions under India’s democratic setup.

Practice Questions

Which of the following is NOT a part of the Indian Constitution?

View Question

विधेयक पारित करने की प्रक्रिया किस प्रावधान के अंतर्गत आती है?

View Question

Which of the following is NOT a feature of the Indian federal system?

View Question

राज्य के अधिकारों की सीमा किसके द्वारा निर्धारित की जाती है?

View Question

Which of the following is NOT a function of the President of India?

View Question

संसद की कार्यप्रणाली का प्रावधान किस अनुच्छेद में मिलता है?

View Question

संविधान सभा के सदस्यों का चुनाव किस प्रकार से हुआ था?

View Question

Which of the following is a provision of the Indian Constitution regarding the Emergency?

View Question

राज्य सरकारों के अधिकार किस अनुच्छेद में वर्णित हैं?

View Question

Who was the first woman President of the Indian National Congress?

View Question