18 May 2016 Current Affairs: The Union Government on 17 May 2016 constituted a five member committee to comprehensively review and give recommendations on the Fiscal Responsibility and Budget Management (FRBM) roadmap for the future.
The committee will be headed by former Revenue and Expenditure Secretary NK Singh. It has been asked to submit its report by 31 October 2016.
Other members of the Committee are Sumit Bose, former Finance and Revenue Secretary, Dr. Arvind Subramanian, Chief Economic Adviser, Urijit Patel, Deputy Governor, RBI and Rathin Roy, Director, National Institute Public Finance and Policy, NIPFP.
Terms of Reference (ToR) of the Committee are : It will review the working of the FRBM Act over last 12 years and suggest the way forward, 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. It will look into various aspects, factors, considerations going into determining the FRBM targets. It will examine the need and feasibility of having a ‘fiscal deficit range’ as the target in place of the existing fixed numbers (percentage of GDP) as fiscal deficit target; if so, the specific recommendations of the Committee thereon. It will also examine the need and feasibility of aligning the fiscal expansion or contraction with credit contraction or expansion respectively in the economy.It will make its assessment and provide its views on the expected impact of its recommendations on the General Government deficit and other FRBM parameters. It will examine and give recommendations on any other aspect considered relevant in relation to the determination and implementation of the FRBM roadmap.
The Committee may be entrusted with additional ToR, if considered necessary. In this context, the Committee may consult Departments/Agencies of Government, experts and institutions, as considered necessary, and determine its own procedures.
The plan to constitute a committee was announced by the Union Finance Minister Arun Jaitley in his Budget speech for 2016-17.