Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by
Answer & explanation
Answer: (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003
The Macro-Economic Framework Statement is one of the fiscal policy statements that the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the Central Government to lay before both Houses along with the annual Budget. The Constitution requires the Budget itself, not this statement.
- ✓ (d) The FRBM Act, 2003 requires the Medium-term Fiscal Policy Statement, the Fiscal Policy Strategy Statement and the Macro-Economic Framework Statement to accompany the annual financial statement; the last assesses GDP growth, the Centre's fiscal balance and the external balance.
- ✗ (b) Article 112 requires the 'annual financial statement' (the Budget), and Article 110(1) defines a Money Bill; neither mentions a macro-economic framework statement.
- ✗ (c) Article 113 lays down how Parliament deals with the estimates, including voting on demands for grants in the Lok Sabha; it does not require this statement.
Remember · FRBM Act, 2003: fiscal policy statements laid with the Budget include the Medium-term Fiscal Policy Statement, the Fiscal Policy Strategy Statement and the Macro-Economic Framework Statement.
📘 Read it in NCERT: Class 12 Introductory Macroeconomics, Ch 5 (practise this chapter) · Class 12 Introductory Macroeconomics, Ch 5 (practise this chapter)
Sources
- NCERT Class 12 · Introductory Macroeconomics, Chapter 5 “Along with the budget, three policy statements are mandated by the Fiscal Responsibility and Budget Management Act, 2003 (FRBMA).”
- NCERT Class 12 · Introductory Macroeconomics, Chapter 5 “The central government to lay before both Houses of Parliament three statements – Medium-term Fiscal Policy Statement, The Fiscal Policy Strategy Statement, The Macroeconomic Framework Statement along with the Annual Financial Statement.”
- Constitution of India, Article 112 (Annual financial statement) ↗ “The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year”
Question and answer: UPSC's official GS Paper I (2020, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·