The Fiscal Responsibility and Budget Management (FRBM) Act of 2003 has changed the total perspective for budget making. The finance ministers henceforth will be bound to the targets laid down which will bring back some balance in the budgets which recently had taken the Central Government almost to the brink of bankruptcy. Many state governments are not yet free from the impending fiscal disaster. The article touches upon the reasons for uncontrolled fiscal deficit and suggests measures that can help in arresting this menace. - Reproduced.