2. Explain the main targets set by the FRBM Act for fiscal deficit and revenue deficit.

• Fiscal Deficit Target:
  • Limit fiscal deficit up to 3% of GDP by March 31, 2021.
• General Government Debt Target:
  • Not exceed 60% of GDP by 2024-25.
• Central Government Debt Target:
  • Not exceed 40% of GDP by 2024-25.
• The Act also aimed for revenue deficit reduction, eventually to zero.