Budget Deficits Types — Policy Reforms

Entry	Year	Description	Impact
FRBM Act Amendment 2012	2012	Extended the timeline for achieving fiscal deficit targets due to global financial crisis impact, allowing flexibility in deficit reduction schedule while maintaining medium-term consolidation commitment.	Provided necessary fiscal space during economic downturn while preserving the institutional framework for fiscal discipline, establishing precedent for counter-cyclical fiscal policy within rule-based framework.
FRBM Act Amendment 2018	2018	Introduced debt-to-GDP targets (60% combined for center and states), escape clauses for extraordinary circumstances, and medium-term fiscal policy framework with rolling targets based on economic conditions.	Shifted focus from deficit targeting to debt sustainability, provided institutional mechanism for crisis response, and enhanced credibility of fiscal policy framework through more realistic and flexible target setting.