The Fiscal Responsibility and Budget Management (FRBM) Committee, headed by former Revenue and Expenditure Secretary N.K. Singh, submitted its report to Finance Minister Arun Jaitley recently with recommendations on the future fiscal framework and roadmap for the country. Some sources told ET Now that FRBM Panel recommended meeting 3% fiscal target in FY18. “FRBM Panel in favour of meeting 2.4% fiscal deficit target by 2023. Government may adhere to FRBM Panel’s suggestion for upcoming fiscals,” the sources said.
The five-member committee — including Reserve Bank of India Governor Urjit Patel, former Finance Secretary Sumit Bose, Chief Economic Advisor Arvind Subramanian, and National Institute of Public Finance and Policy Director Rathin Roy — was constituted in May 2016 following Mr. Jaitley’s announcement, in Budget 2016-17, of the creation of a panel to review the Fiscal Responsibility and Budget Management Act.
Meanwhile, the committee, in the report, made recommendations on strengthening the institutional framework on fiscal matters as well as certain issues connected with new capital expenditures in the budget, the Finance Ministry said in a statement. “The committee held extensive consultations with a wide range of stakeholders. It also received inputs from eminent national and international organisations and domain experts.
The Committee also held interactions with various ministries of Centre as well as with the state governments,” it said. “The government will examine the report and take appropriate action,” it added.