Public Debt Management — Policy Reforms

Entry	Year	Description	Impact
FRBM Act Amendment	2012, 2015, 2018	The FRBM Act, 2003, has seen several amendments and reviews. The 2012 amendment introduced a 'Medium Term Fiscal Policy Statement cum Fiscal Policy Strategy Statement'. Subsequent reviews, notably the N.K. Singh Committee (2017), recommended replacing the revenue deficit target with a debt-to-GDP ratio target for the general government (60% by 2023, split 40% for Centre and 20% for States). While these specific targets were not fully legislated as amendments, the government has largely adopted the spirit of these recommendations in its fiscal policy statements, including the 'escape clause' provision for exceptional circumstances.	Shifted focus from revenue deficit elimination to overall debt sustainability. Provided greater flexibility in fiscal targets during economic downturns (e.g., COVID-19). Emphasized a medium-term perspective for fiscal consolidation, aligning with global best practices for debt management strategies.