Govt examining report on subsidy rationalisation

Govt had set up a panel under former RBI Governor Bimal Jalan in 2013 to suggest steps to reduce subsidies on food, fertiliser and oil and narrow fiscal deficit

The Expenditure Management Commission (EMC) set up by the government to suggest ways to rationalise subsidies has submitted its final report and the same is under examination, Parliament was informed today.

"The Expenditure Management Commission has submitted its final report and the report is under examination," Minister of State for Finance Jayant Sinha said in a written reply to the Lok Sabha.

The government had set up the Commission under former RBI Governor Bimal Jalan in August 2013 to suggest steps to reduce subsidies on food, fertiliser and oil and narrow the fiscal deficit.

The government has already introduced direct benefit transfer scheme to plug leaks in subsidies and other welfare schemes to ensure the benefit reaches the poor directly.

According to the terms of reference, the commission was entrusted with examining various aspects of expenditure reforms to be undertaken by the government such as review of institutional arrangements, including budgeting process and Fiscal Responsibility and Budget Management (FRBM) rules.

It was also to suggest ways to improve allocative efficiency in the existing expenditure classification system, and other issues concerning public expenditure management.