N.K. Singh to head panel to review FRBM Act

The government has announced the constitution of a panel under Former Revenue Secretary and Rajya Sabha MP N.K. Singh to review the Fiscal Responsibility and Budget Management (FRBM) Act of 2003.

Details:

·       The committee will review the working of the Act in the context of the uncertainity and volatility of global economy and suggest changes that are in tune with the broad objective of fiscal consolidation.

·       The committee will examine whether a broad fiscal deficit range should be adopted in place of specific target. It will also examine the need and feasibility of aligning the fiscal expansion or contraction with credit contraction or expansion, respectively in the economy.

·       The committee will also provide an assessment of the impact of its recommendations on the government deficit and FRBM parameters.

Background:

The decision to form the committee was announced by Finance Minister Arun Jaitley during the presentation of Union Budget 2016-17.