The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted by the Parliament in August 2003. The objective of introducing FRBM Act, 2003 was to institutionalize fiscal discipline, reduce fiscal deficit, improve macro-economic management and the overall management of the public funds by moving towards a balanced budget.
Section 7A of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, as amended in May 2012, provides that the Central Government may entrust the Comptroller and Auditor General of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid before both Houses of Parliament.
This is the second report of the Comptroller and Auditor General of India on the compliance of the provisions of the FRBM Act and the Rules made thereunder by the Central Government for the year ended March 2016.
The report contains significant results arising from the review of compliance of the provisions of the Act. The instances mentioned in this report are those, which came to notice in the course of test audit for the period 2015-16. Matters relating to the period prior to and subsequent to 2015-16 have also been included, wherever necessary.