UPSC Prelims 2018 · GS Paper 1 · Q9

Economy

Hard · FRBM Review Committee: Debt and Borrowing Rules

Consider the following statements regarding the FRBM Review Committee (headed by N.K. Singh):

1. The Committee recommended a numerical ceiling on general government debt as a share of GDP.

2. As per the Committee's own data, state governments' domestic liabilities, as a share of GDP, exceed those of the Centre.

3. A state government that is already indebted to the Centre needs the Centre's consent before raising fresh market borrowings.

Which of the statements given above are correct?