Debt Size:

This implies an imposition of an upper limit by the legislature on the size of the debt a government can borrow.  In U.S.A the congress authorizes a set limit which the Treasury cannot exceed.  Fixing a limit on the size of debt has been considered as an indirect way of controlling unnecessary and unproductive expenditure of the governments. In USA, the recently enacted Fiscal Responsibility and Budget Management (FRBM) Act can be stated as a similar exercise. The Twelfth Finance Commission while recommending debt relief and incentive grants-in-aid to states insisted that those states which would enact the FRBM Acts are only eligible to get the relief. Such a measure has been appreciated as it may help  manage the debt levels of the center and state  governments at sustainable level.