A five-member committee, chaired by former revenue secretary NK Singh, submitted a four-volume report on the road ahead on fiscal consolidation and debt management to finance minister Arun Jaitley on Monday.
The committee has recommended major changes in the 13-year-old Fiscal Responsibility and Budget Management (FRBM) Act and suggested ways to ensure responsible and higher growth, sources said. A new FRBM Act is critical to create better conditions for co-ordination between monetary and fiscal policy and also usher in a low interest rate regime.
“We have submitted the report to the government, now it has to decide on it…In the report, we have addressed the entire terms of reference,” Singh said. The report highlights the international experience, Centre-state issues and also has analysis from experts. While presenting the Union budget next week, Jaitley could announce a “fiscal deficit range” for the coming years instead of a single target on the basis of the report, government sources said.
RBI governor Urjit Patel, former finance secretary Sumit Bose and chief economic adviser Arvind Subramanian were on the panel.