Fiscal Responsibility And Budget Management

Budget 2018 proposed to stop setting targets on revenue deficit reduction from next year through an amendment in the Fiscal Responsibility and Budget Management framework

The move gives Arun Jaitley leeway to decide fiscal deficit levels for 2017-18 and 2018-19 when he presents his last full union budget on 1 February 2018

The NK Singh committee's report carries a dissent note by the chief economic adviser pointing to absence of consistency between debt and deficit targets prescribed

While fiscal rules can indeed be useful, the old FRBM Act was flawed and needs to be replaced by something better

The health of public finances in India will in great measure depend upon the fiscal rectitude of state governments

The apparent reluctance of India's governments to adhere to fiscal dharma captures the importance of N.K. Singh committee's recommendations

N.K. Singh on the importance of FRBM panel's recommendations on the fiscal deficit target of 2.5% by FY23 and increasing importance of states as stakeholders

The increase in deficit will limit the benefits of fiscal consolidation by the central government

The N.K. Singh panel has recommended a debt to GDP ratio of 38.7% for the central government and a fiscal deficit of 2.5% of GDP, both by 2022-23

A Fiscal Responsibility and Budget Management (FRBM) panel will ensure fiscal responsibiltysomething the future generations will thank us for