● The Escape Clause is mentioned under Section 4(2) of the Fiscal Responsibility and Budget Management(FRBM) Act.
● The Escape Clause allows the Center to breach its fiscal deficit target by 0.5 percentage points in exceptional circumstances.
These exceptional circumstances include:
a) National security
b) war
c) National calamity
d) Collapse of agriculture
e) Structural reforms and
f)Decline in real output growth of a quarter by at least three percentage points below the average of the previous four quarters.
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