From the following, identify the main features of Fiscal responsibility and Budget Management act.

(A) The actual deficits may exceed the targets specified only on grounds of national security or natural calamity or such other exceptional grounds as the central government may specify.

(B) The Act mandates the central government to take appropriate measures to reduce fiscal deficit to not more than 3 percent of GDP

(C) The central government shall not borrow from the Reserve Bank of India except under specified conditions.

(D) Measures to be taken to ensure greater transparency in fiscal operations.

Choose the correct answer from the options given below:

Option 3: (A), (B), (C) and (D) -> The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 encompasses all four features mentioned. Statement (A) is correct as the Act allows deviations from targets under exceptional circumstances like national security, natural calamities, or other grounds specified by the government. Statement (B) is accurate as the Act mandates reducing fiscal deficit to 3% of GDP (originally aimed for March 31, 2008, later amended). Statement (C) is valid as the Act prohibits direct government borrowing from RBI except under specified conditions, eliminating automatic monetization of deficit. Statement (D) is correct as the Act requires greater fiscal transparency through mandatory disclosure of fiscal policy statements, medium-term fiscal policy statements, and macroeconomic framework statements. All four statements represent core features of the FRBM Act, making this the comprehensive and correct answer. -> correct