The paper assesses India’s experience with fiscal consolidation and performance under the Fiscal Responsibility and Budget Management (FRBM) Act. While the introduction of FRBM rules helped consolidate the finances of both the central and state governments, key challenges under the FRBM Act remain such as (i) a weak linkage between budget policy setting and operational framework, (ii) insufficient coverage or assessment of fiscal risks, and (iii) inadequate course correction under the transparency and accountability framework when fiscal objectives went “off-track.”