The Union Government has constituted a five member committee to comprehensively review and give recommendations on the Fiscal Responsibility and Budget Management (FRBM) roadmap for the future.
Composition: The committee will be headed by Former Revenue Secretary and Rajya Sabha MP, NK Singh. Its members are former Finance and Revenue Secretary Sumit Bose, Chief Economic Adviser (CEC) Dr. Arvind Subramanian, Deputy Governor of RBI Urijit Patel and Director of National Institute Public Finance and Policy (NIPFP) Rathin Roy.
The committee was constituted as per the announcement made by the Union Finance Minister Arun Jaitley in his 2016-17 Budget speech. It will submit its Report to the Union Government by the 31st October, 2016.
Terms of Reference of the Committee
- Review the working of the FRBM Act, 2003 over last 12 years and suggest the way forward.
- The suggestions should be submitted 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
- Look into various factors, aspects, considerations going into determining the FRBM targets
- Consider the possibility of replacing absolute fiscal deficit targets with a target range that may be adjusted in line with the overall credit trends in the economy.
- Examine the need and feasibility of aligning the fiscal contraction and expansion with credit expansion or contraction respectively in the economy.