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Finance Commission suggests new path for fiscal consolidation
The finance commission has drawn out a new five-year roadmap for fiscal prudence.
The finance commission has drawn out a new five-year roadmap for fiscal prudence.
The commission, which submitted its report to President Pratibha Patil on Wednesday, has recommending a formula for distributing tax revenues between the Centre and the states and amongst the states themselves.
The report also reviewed the state of the finances of the Centre and the States and the impact of the implementation of the proposed Goods and Services Tax.
“We had been asked to suggest new path for fiscal consolidation... We have recommended fiscal path for the next five years (2010-15),” 13th Finance Commission chairman Vijay Kelkar said.
Finance Minister Pranab Mukherjee has said the recommendations of the commission will be reflected in the Budget.
“There is a system. (The report) will be tabled in Parliament," Mukherjee said.
He also indicated that the government was unlikely to withdraw fiscal stimulus packages.
“Exiting the stimulus packages now may not be correct... if the world economy collapses, the depression would be deeper. I am not hinting anything,” he said.
