Match List-I with List-II as per the main features of the FRBMA:List-…

Match List-I with List-II as per the main features of the FRBMA:

List-I		List-II
(A)	Fiscal deficit	(I)	Allowed only on grounds of national security, natural calamity or such other exceptional grounds
(B)	Revenue deficit	(II)	Only by way of advances to meet a temporary excess of cash disbursements over cash receipts
(C)	Actual deficits exceeding the targets	(III)	To be reduced to not more than 3 per cent of GDP
(D)	Borrowing from the RBI	(IV)	To be eliminated, and adequate surplus built up thereafter

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

The FRBMA of 2003 sets rules to keep government deficits and borrowing under control.

List-I	List-II	Reason
(A) Fiscal deficit	(III) To be reduced to not more than 3 per cent of GDP	The Act sets a 3 per cent ceiling.
(B) Revenue deficit	(IV) To be eliminated, and adequate surplus built up thereafter	The revenue deficit is to be brought to zero, then a surplus built.
(C) Actual deficits exceeding the targets	(I) Allowed only on grounds of national security, natural calamity or such other exceptional grounds	Targets may be crossed only on exceptional grounds.
(D) Borrowing from the RBI	(II) Only by way of advances to meet a temporary excess of cash disbursements over cash receipts	Only temporary advances are allowed.

NCERT (2026-27): “Main Features 1. 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, …”

“3. 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.”

“4. 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.”