WHAT IS MACRO-ECONOMIC FRAMEWORK STATEMENT

Every year, a macro-economic framework statement is presented before Parliament at the time of Union Budget presentation. This is under Section 3(5) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.

 

The FRBM Act instructs the government to make an assessment of growth prospects for the economy with regards to specific underlying assumptions. The statement contains an overview of the economy. This includes an assessment regarding the GDP growth rate, fiscal balance of the central government and the external sector balance of the economy.

 

Monetary management and financial intermediation, banking sector, agriculture and industry are also covered by the statement.

 

The 2019-20 FRBM, for example, recorded, under agriculture, total production of food grain, rice, wheat, milk, fish, and fish products. The statement ends with a section highlighting prospects for the economy in the future.

Read full Macro-Economic Framework Statement

Macro-Economic Framework Statement 2020-21