Committee Constituted On FRBM Roadmap

IAS Prelims 2023

In pursuance of the Budget Announcement 2016-17, the Government has constituted a five Member Committee to comprehensively review and give recommendations on the FRBM (The Fiscal Responsibility and Budget Management) roadmap for the future.

The composition of the FRBM Review Committee is as follows:

N. K. Singh, Former Revenue Secretary & Expenditure Secretary &Former Member of Parliament(Rajya Sabha) : Chairman

Sumit Bose, Former Finance & Revenue Secretary: Member

Arvind Subramanian, Chief Economic Adviser (CEA) : Member

Urijit Patel,Deputy Governor,RBI: Member

Rathin Roy, Director, NIPFP: Member

The Terms of Reference (ToR) of the Committee are as under:

To review the working of the FRBM Act over last 12 years and to 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;

To look into various aspects, factors, considerations going into determining the FRBM targets,

To 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; and

To examine the need and feasibility of aligning the fiscal expansion or contraction with credit contraction or expansion respectively in the economy.

The Committee will make its assessment and provide its views on the expected impact of its recommendations on the General Government deficit and other FRBM parameters.

The Budget Division of Department of Economic Affairs, Ministry of Finance will provide necessary secretarial and logistics support to the Committee.

The Committee shall submit its Report to Government by the 31st October, 2016.