STABILIZATION AND GOVERNMENT DEFICITS
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deficit on the revenue account be eliminated by the same date. The specified
annual reductions in the two measures are 0.5 percentage point of GDP or
more for the revenue deficit and 0.3 percentage point of GDP or more for the
fiscal deficit. The FRBMA was amended in July 2004 to shift the terminal date
for achieving the numerical targets pertaining to the fiscal indicators by a year
to 2008–2009. The Act also disqualifies the RBI from subscribing to govern-
ment paper after 31 March 2006.
8
In February 2004 the government constituted a task force to devise a
strategy for implementing the ...
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