According to the provisions of the Fiscal Responsibility and Budget Management (FRBM). Act, 2003 and FRBM Rules, 2004, the Government is under obligation to present three statements before the Parliament along with the Annual Budget. Which one of the following is not one of them?

Under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, and the FRBM Rules, 2004, the Central Government is mandated to lay three specific fiscal policy statements before both Houses of Parliament along with the Annual Financial Statement [c2][t3]. These are: (1) the Macro-economic Framework Statement, which provides growth prospects and underlying assumptions [t4][t6]; (2) the Medium-term Fiscal Policy Statement, which sets three-year rolling targets for key fiscal indicators [c1][t3]; and (3) the Fiscal Policy Strategy Statement, which outlines the government's fiscal priorities and justifies any deviations [c1][t4]. While a Medium-term Expenditure Framework Statement was later added via amendment [t4][t5], there is no provision for a 'Statement showing Short term Fiscal Policy' under the FRBM framework. The Act specifically focuses on medium-term sustainability and long-term macroeconomic stability rather than short-term policy documents [t2][t4].

Sources

1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Capital Expenditure > p. 70
2. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Main Features > p. 82
3. [3] https://www.indiabudget.gov.in/doc/frbm1.pdf
4. [4] https://www.pib.gov.in/newsite/erelcontent.aspx?relid=2246
5. [5] https://www.indiacode.nic.in/bitstream/123456789/2064/1/a2003-39.pdf
6. [6] https://cag.gov.in/uploads/download_audit_report/2021/05_Chapter%201-061a4c47f5f39a1.92176491.pdf
7. [7] https://dea.gov.in/files/budget_division_documents/FRBM_Act_2003_and_FRBM_Rules_2004.pdf