- The Fiscal Responsibility and Budget Management (#FRBM) Committee under the chairmanship of Shri N.K. Singh, former Revenue and Expenditure Secretary and former Member of Parliament presented its Report to the Union Finance Minister
- The Committee was constituted by the Union Cabinet in May 2016 to review the Fiscal Responsibility and Budget Management (FRBM) Act.
iii. The Committee had wide-ranging Terms of Reference (ToR) to review the existing FRBM Act based on the past outcomes, global economic developments, best international practices and to recommend the future fiscal framework and roadmap for the country.
The Committee sought consultations with a wide range of stakeholders, eminent national and international organizations and domain experts, various Ministries of Government of India as well as with the State Governments to present the report.
Other members of the committee include, Dr. Urjit R. Patel, Governor, Reserve Bank of India (RBI), Shri Sumit Bose, former Finance Secretary, Dr. Arvind Subramanian, Chief Economic Adviser and Dr. Rathin Roy, Director, National Institute of Public Finance & Policy (NIPFP).
The committee has also called for institutional reforms in general government’s fiscal management, including the Centre giving consent to State borrowings under Article 293 of the Constitution and requesting the RBI to issue a consolidated annual prospectus for planned bond and loan issues by each government.
“Adopt fiscal deficit as the key operational target consistent with achieving the medium-term debt ceiling,” said the first part of the report, adding that “escape clause” should be used only in specified circumstances, when a deviation of up to 0.5 percentage points from the fiscal deficit target would be permitted.