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Former Reserve Bank of India governor Bimal Jalan said on Thursday the revised target of a fiscal deficit of three per cent of gross domestic product by 2018-19 was difficult but achievable.
Jalan currently heads the Expenditure Management Commission (FMC), tasked by the government to review the major areas of expenditure and how to create fiscal space for development spending. Also, to suggest changes in the way the Centre spends its money and accounts for it.
Also on the FMC are former Reserve Bank of India deputy governor Subir Gokarn and former finance secretary Sumit Bose. Its first interim report was in January and the final report is to come before the next Union Budget, a deadline Jalan said they’d meet.
Asked about what could be expected in the final report, Jalan said: “I can't say much but we will try and manage expenditure and fulfil the targets that have been laid down in the FRBM (fiscal responsibility law). Everything we implement will take time.”
Adding: “We are trying to see what way we can use Direct Benefits Transfer (of subsidies) and apply it to other entitlements programmes. I won’t name them because what we do will take some more time. The whole idea is to make it easy to save expenditure.”
