Internal and External Debt — Policy Reforms

Entry	Year	Description	Impact
FRBM Amendment Act	2018	The FRBM Act was amended to provide flexibility in fiscal deficit targets during economic downturns and to establish a medium-term fiscal framework. The amendment introduced escape clauses allowing deviation from fiscal targets during national security threats, natural disasters, or severe economic slowdowns. It also mandated the government to present a medium-term fiscal policy statement and established debt-to-GDP targets.	Enhanced fiscal policy flexibility while maintaining long-term debt sustainability commitments, allowing counter-cyclical fiscal policy during economic crises while preserving overall fiscal discipline framework
Government Securities Act Amendment	2006	The Government Securities Act, 2006 replaced the Public Debt Act, 1944, modernizing the legal framework for government securities issuance and management. It provided for dematerialized securities, electronic trading, and streamlined procedures for debt management operations. The Act also clarified RBI's role as debt manager and established the legal basis for various debt instruments.	Modernized India's debt management infrastructure, facilitated electronic trading and settlement, and provided legal clarity for innovative debt instruments, significantly improving the efficiency and transparency of government debt markets