Delhi Cabinet approves bill to improve fiscal discipline, manage funds

New Delhi: The Delhi Cabinet has approved a draft Fiscal Responsibility and Budget Management (FRBM) Bill aimed at strengthening fiscal discipline, improving transparency in public spending and ensuring sustainable management of the government’s finances, officials said on Monday

New Delhi: The Delhi Cabinet has approved a draft Fiscal Responsibility and Budget Management (FRBM) Bill aimed at strengthening fiscal discipline, improving transparency in public spending and ensuring sustainable management of the government’s finances, officials said on Monday.

The bill is expected to be tabled in the upcoming Winter Session of the Delhi Assembly. (HT)

The bill is expected to be tabled in the upcoming Winter Session of the Delhi Assembly.

The proposed legislation, approved last month, seeks to establish a framework for managing government expenditure, borrowing and debt while ensuring greater accountability in budgetary decisions, officials said.

It also aims to reduce fiscal and revenue deficits and promote long-term financial stability.

Under the draft law, the government will be required to present key fiscal policy documents alongside the annual Budget in the Delhi Assembly. These will include a Macroeconomic Framework Statement and a Medium-Term Fiscal Policy Statement outlining the government’s economic outlook and fiscal strategy, officials explained.

The bill also provides for periodic reviews of budget performance. In case of significant deviations from fiscal targets, the government will have to explain the reasons and detail corrective measures before the Assembly, officials said.

The legislation is intended to bring greater predictability to Delhi’s budgeting process and ensure that public resources are managed prudently while supporting development priorities, officials said.