Which of the following statements best describes the impact of the Fiscal Responsibility and Budget Management (FRBM) Act on India's fiscal policy?
1
The FRBM Act mandates the government to maintain a constant fiscal deficit regardless of economic conditions.
2
The FRBM Act allows the government to increase fiscal deficit during periods of high economic growth.
3
The FRBM Act sets targets for fiscal deficit and debt-to-GDP ratios to ensure fiscal discipline and macroeconomic stability.
4
The FRBM Act focuses on reducing direct taxes to stimulate economic growth.
5
The FRBM Act primarily aims to increase public spending on social welfare programs.