FRBM disclosure statements must be transparent and complete: CAG

Q.  FRBM disclosure statements should be transparent, according to the CAG. What does FRBM stand for?
- Published on 16 Aug 16

a. Fiscal Responsibility and Business Management
b. Fiscal Responsibility and Management
c. Financial Responsibility and Business Management
d. Financial Responsibility and Management

ANSWER: Fiscal Responsibility and Management
FRBM disclosure statements should be transparent and complete, according to the Comptroller and Auditor General. Centre should take steps to ensure that FRBM disclosure statements are transparent and complete with respect to all aspects.
  • In its first report relating to review of the Fiscal Responsibility and Management Act, CAG said the government should carry out suitable amendments to the Act as well as Rules to address inconsistency.
  • Government will strengthen the process of making underlying assumptions for projection of receipt and expenditure in various fiscal policy statements to insulate them from frequently changing and integrating the projections in the disclosure statements tabled for the Parliament in 2014-2015.
  • Report said a refund of INR 1.17 lakh crore (including interest on refund of taxes) was made from gross direct tax collection in 2014-2015 but was not disclosed in government accounts.
  • CAG also regretted that 12th Finance Commission recommendations pertaining to inclusion of 8 additional statements in the Union government accounts for more transparency were not implemented despite in-principle acceptance.

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