Budget 2020: 15th Finance Commission calls for new legal fiscal framework

Expert panel may be set up to define responsibilities of key stakeholders and standards to be followed at all levels of government

The Fifteenth Finance Commission (15th FC), in its report for 2020-21 has recommended the creation of an overarching legal fiscal framework to improve and overhaul budgeting at the central and state level, as well as provide greater budgetary transparency.

Mirroring the Fiscal Responsibility and Budget Management (FRBM) Act, this would also define the roles and responsibilities of key stakeholders, as well as the budgeting, accounting, internal control and audit standards to be followed at all levels of government, the Commission said on Friday. An expert group may now be set up to draft the legislation.

The recommendation has been a long time