The Fiscal Responsibility and Budget Management (FRBM) Committee, set up to review the FRBM Act and look into gross domestic product (GDP) estimates along with tax numbers, presented its report to Union Finance Minister Arun Jaitley on Monday, January 23.
The committee was constituted in May 2016 under the chairmanship of former MP and former Revenue and Expenditure Secretary NK Singh. The Narendra Modi government will now examine the report and take appropriate action.
The committee had wide-ranging terms of reference to comprehensively review the FRBM Act in the light of contemporary changes, past outcomes, global economic developments, best international practices and to recommend the future fiscal framework and roadmap for the country.
Subsequently, the terms of reference were enlarged to seek the committee's views on certain recommendations of the 14th Finance Commission and the Expenditure Management Commission. These primarily related to strengthening the institutional framework on fiscal matters as well as certain issues connected with new capital expenditures in the budget.
The committee held extensive consultations with a wide range of stakeholders. It also received inputs from eminent national and international organisations and domain experts. The panel also held interactions with various ministries as well as with state governments.
Other members of the FRBM panel include Reserve Bank of India (RBI) Governor Urjit R Patel, former Finance Secretary Sumit Bose, Chief Economic Adviser Arvind Subramanian and National Institute of Public Finance and Policy (NIPFP) Director Rathin Roy.