Committee invites public comments on review of FRBM roadmap

The five-member committee set up to review the FRBM Act has started the consultation process on the feasibility of having a 'fiscal deficit range' instead of a fixed target for the government.
Comments and suggestions have been sought from stakeholders and general public on the Fiscal Responsibility and Budget Management (FRBM) Act till June 30, the Finance Ministry said today.
In pursuance of the Budget announcement, the government has constituted a committee chaired by former Revenue and Expenditure Secretary and ex-MP N K Singh to review the working of the 12-year old FRBM Act and give recommendations on the roadmap for future.

The committee has been asked to submit its report by end-October.
Among other things, the committee was asked to examine the need and feasibility of having a 'fiscal deficit range' as the target in place of the existing fixed numbers (percentage of GDP).
The committee is expected to suggest the way forward "keeping in view the broad objective of fiscal consolidation and prudence and the changes required in the context of the uncertainty and volatility in the global economy".

It will also examine the need and feasibility of aligning fiscal 'expansion or contraction' with 'credit contraction or expansion' in the economy.

The committee held its meeting on May 27.
"We have prepared inventory of stakeholders. We will consult state governments and seek opinion of NCAER and other institutions like NIPFP," Singh said.