Finance Commission chairman NK Singh cautions against fiscal slippage

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New Delhi | Published: December 23, 2018 3:37:16 AM

Finance Commission chairman NK Singh on Saturday sounded a note of caution against fiscal slippage, saying it would adversely impact the country’s macroeconomic stability as well as investment climate.

Singh expressed apprehension that some states are not according priority to fiscal discipline, which was not the case earlier.

Finance Commission chairman NK Singh on Saturday sounded a note of caution against fiscal slippage, saying it would adversely impact the country’s macroeconomic stability as well as investment climate. The remarks come in the backdrop of several states, including Madhya Pradesh and Rajasthan, which witnessed a change of government, announcing farm loan waivers.

Singh expressed apprehension that some states are not according priority to fiscal discipline, which was not the case earlier. He also emphasised on strengthening the Centre-state relationship through institutional mechanisms. Addressing the ‘Skoch Summit’ here, he said the government should look at ways to further accelerate the reforms process pertaining to the factors of production—labour, land, capital.

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