The present book attempts to understand the rationale of fiscal adjustment from the mainstream and political economy approaches. The study aims at finding out the major factor behind rising fiscal imbalance in India. It also attempts to understand the effect of elections on the fiscal imbalance. The book reviews how Fiscal Policy Rules (FPRs) are designed in different countries. It makes an attempt to do a critical in-depth review of the Fiscal Responsibility and Budget Management Act and makes an attempt at examining effectiveness and suitability of FRBM act through a quantitative analysis.