Amending the FRBM Act

For two years running, the finance ministry has excused itself from providing a projection of its fiscal consolidation plan

The Union finance ministry is committed to reducing the government’s fiscal deficit from 6.9 per cent of gross domestic product or GDP in 2021-22 to 6.4 per cent in 2022-23. What’s more, the deficit is set to decline to 4.5 per cent by 2025-26. A reduction in the fiscal deficit by about two percentage points over three years may appear to indicate a slow pace of consolidation, but the government has nevertheless set a medium-term target for lowering the deficit.

Yet, there are questions about the way the fiscal consolidation plan has been outlined. Two specific questions have arisen. What about