FRBM Act, 2003
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Current affairsNobel Prize in Economics 2026: Robert E. Hall and Michael Woodford Honoured for Macroeconomic Stabilisation ModelsThe Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2026 was awarded on October 12 to American economists Robert E. Hall (Stanford University) and Michael Woodford (Columbia University) for their work on the "microeconomic foundations of macroeconomic stabilisation." Their models underpin how central banks and governments use fiscal and monetary policy to smooth economic boom-bust cycles, and are directly relevant to how institutions like the RBI and IMF calibrate their responses to economic shocks. Current affairsIMF World Economic Outlook October 2026: India's Growth Upgraded to 7%, Fastest-Growing Major EconomyThe International Monetary Fund (IMF) released its World Economic Outlook (WEO) report titled "Resilience Under Strain, Urgent Choices" on October 14, 2026, upgrading India's FY27 GDP growth forecast to 7% — a 60-basis-point upward revision from the July 2026 WEO. India is projected as the world's fastest-growing major economy, outpacing China (4.5%) by 2.5 percentage points, driven by resilient domestic demand and robust services activity even as global growth faces headwinds from energy price volatility and Middle East conflict spillovers. Current affairsADB Raises India's FY2026-27 GDP Growth Forecast to 7%: Asian Development Outlook September 2026The Asian Development Bank (ADB) upgraded India's FY2026-27 GDP growth forecast from 6.6% to 7.0% in its Asian Development Outlook (ADO) September 2026 update, citing 7.8% year-on-year growth in Q1 FY27, robust investment demand, resilient consumption, and strong manufacturing and services expansion. FY2027-28 is projected at 7.1%. Current affairsIndia's GDP Grows 7.8% in Q1 FY2026-27: Manufacturing and Services Drive Expansion, Beats RBI ForecastIndia's real GDP grew 7.8% in Q1 FY2026-27 (April–June 2026), as per MoSPI data released on 31 August 2026, surpassing both the RBI's 7% estimate and a Reuters poll forecast of 7.1%. Nominal GDP rose 10.3% to ₹88.27 lakh crore, driven by strong manufacturing (9.2%), financial services (12.1%), and construction (7.7%) growth. Current affairsRBI MPC August 2026: Repo Rate Unchanged at 5.25%, Neutral Stance Retained — GDP Forecast Raised to 6.7%The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously voted 6-0 to keep the policy repo rate unchanged at 5.25% in its 62nd meeting (August 3–5, 2026), retaining the 'Neutral' stance. The GDP growth forecast for FY 2026-27 was raised to 6.7%, while the CPI inflation projection was lowered to 5.0% (from 5.1% at the June 2026 meeting). Current affairsRBI Monetary Policy Committee August 2026: Repo Rate Held at 5.25%, GDP Forecast Raised to 6.7%, Inflation Cut to 5.0%The Reserve Bank of India's Monetary Policy Committee (MPC), at its 62nd meeting (August 3–5, 2026), unanimously voted to keep the policy repo rate unchanged at 5.25% while retaining the 'Neutral' stance. The RBI raised FY27 GDP growth forecast to 6.7% and lowered CPI inflation projection to 5.0%, reflecting domestic resilience and moderating demand-side pressures even as global geopolitical uncertainties persist. Current affairsRBI Keeps Repo Rate at 5.25%: August 2026 Monetary Policy ExplainedRBI Keeps Repo Rate at 5.25%: August 2026 Monetary Policy Explained
Featured Snippet: In its August 2026 meeting (3–5 August), the Reserve Bank of India's Monetary Policy Committee (MPC) unanimously kept the repo rate unchanged at 5.25% and retained a "neutral" stance....
In previous-year questions
- The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, mandates the Union Government to target fiscal deficit at what percentage of GDP?UPSC · Current Affairs
- The FRBM Act, 2003 (Fiscal Responsibility and Budget Management Act) mandates India to limit its fiscal deficit to what percentage of GDP, and how does a 7% GDP growth forecast (ADB, FY27) relate to this?UPSC · Current Affairs
- Which of the following correctly describes the FRBM Act, 2003 and its relevance to India's high GDP growth projections?UPSC · Current Affairs