---
title: "FRBM Escape Clause: Fiscal Deficit Trigger | Model Diplomat"
description: "The FRBM escape clause lets India's Union government breach fiscal deficit targets by up to 0.5% of GDP during national security, calamity, or output collapse."
url: "https://modeldiplomat.com/learn/glossary/fiscal-deficit-escape-clause"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The FRBM escape clause is a statutory provision permitting the Union government to temporarily exceed legislated fiscal deficit targets under specified exceptional circumstances.
- What is the maximum deviation permitted under the FRBM escape clause?
- Which committee recommended introducing the escape clause?
- What circumstances allow the government to invoke the clause?
- How does the escape clause differ from off-budget borrowing?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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Example

In the Union Budget 2020–21 presented on 1 February 2020, Finance Minister Nirmala Sitharaman invoked the FRBM escape clause to relax the fiscal deficit target by 0.5 percentage point, citing structural reforms with unanticipated fiscal implications.

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