FRBM: the fiscal rulebook

The Fiscal Responsibility and Budget Management framework sets legal ceilings on how much a state may borrow — most importantly a fiscal deficit target around 3% of GSDP. When the deficit runs above the ceiling, the state is borrowing more than the rule allows. **Why this matters to you:** the ceiling is the difference between borrowing for roads and schools and borrowing just to pay yesterday's bills. Every rupee over the limit is a rupee of future taxes already spent.