From the following, identify the main features of Fiscal responsibility and Budget Management act.

(A) The actual deficits may exceed the targets specified only on grounds of national security or natural calamity or such other exceptional grounds as the central government may specify.
(B) The Act mandates the central government to take appropriate measures to reduce fiscal deficit to not more than 3 percent of GDP
(C) The central government shall not borrow from the Reserve Bank of India except under specified conditions.
(D) Measures to be taken to ensure greater transparency in fiscal operations.

Choose the correct answer from the options given below:

(A), (B), (C) and (D)

The correct answer is Option (3) → (A), (B), (C) and (D)

All four statements represent key features of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.

(A) The actual deficits may exceed the targets specified only on grounds of national security or natural calamity or such other exceptional grounds as the central government may specify. Correct. 
(B) The Act mandates the central government to take appropriate measures to reduce fiscal deficit to not more than 3 percent of GDP. Correct. The Act mandates the central government to take appropriate measures to reduce fiscal deficit to not more than 3 percent of GDP and to eliminate the revenue deficit by March 31, 20098 and thereafter build up adequate revenue surplus.
(C) The central government shall not borrow from the Reserve Bank of India except under specified conditions. Correct. The central government shall not borrow from the Reserve Bank of India except by way of advances to meet temporary excess of cash disbursements over cash receipts. 
(D) Measures to be taken to ensure greater transparency in fiscal operations. Correct.