Q. 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

Explanation:

Fiscal Responsibility and Budget Management (FRBM) Act, 2003

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, was enacted by the Parliament of India to institutionalize financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of the public funds by the government. Under the provisions of the FRBM Act, the government is required to place before the Parliament three statements each financial year, along with the Budget and Appropriation Bills. These are:

• 1. The Medium Term Fiscal Policy Statement
• 2. The Fiscal Policy Strategy Statement
• 3. The Macro Economic Framework Statement

The Macro Economic Framework Statement is specifically mentioned under Section 3 of the FRBM Act. This document is crucial as it provides the macroeconomic framework for the relevant financial year, outlining the government’s assessment of the economy’s growth prospects, fiscal policy strategy, and the key fiscal measures and targets. It serves as a backdrop against which the budgetary allocations and fiscal policy decisions are made, ensuring that they are aligned with the broader economic objectives and fiscal discipline goals.

Therefore, the presentation of the Macro Economic Framework Statement along with the Budget is mandated by the provisions of the Fiscal Responsibility and Budget Management Act, 2003, and not by parliamentary convention or specific articles of the Constitution of India.