Along with the Budget, the Finance Minister also places other documents before the Parliament which include “The Macro Economic Framework Statement”. The aforesaid document is presented because this is mandated by
Fiscal Responsibility and Budget Management (FRBM) became an Act in 2003. The objective of the Act is to ensure inter-generational equity in fiscal management, long run macroeconomic stability, better coordination between fiscal and monetary policy, and transparency in fiscal operation of the Government. FRBM Act provides a legal institutional framework for fiscal consolidation. The Act also requires the government to lay before the parliament three policy statements in each financial year namely 1. Medium Term Fiscal Policy Statement 2. Fiscal Policy Strategy Statement 3. Macroeconomic Framework Policy Statement