Government sets up 5-member panel to relook key financial act

The union government on Tuesday constituted a five-member committee for a comprehensive review of the Fiscal Responsibility and Budget Management (FRBM) Act, an official statement here said.

The FRBM panel, which was announced by Finance Minister Arun Jaitley while presenting the budget for siscal 2016-17, will look into factors that influence the country's fiscal targets.

The FRBM Act deals with fiscal matters such as spending and deficit, alongwith management of macro-economic factors and public funds.

Announcing the composition of the committee, a finance ministry statement said former revenue secretary and currently senior BJP leader N.K. Singh will head the panel.

The other members of the committee are Chief Economic Advisor Arvind Subramaniam, former revenue secretary Sumit Bose, Reserve Bank deputy governor Urijit Patel and National Institute of Public Finance and Policy director Rathin Roy.

The committee will review the working of the 12-year old FRBM Act in the context of the uncertainty and volatility of global economy and suggest changes that are in tune with the broad objective of fiscal consolidation, the statement said.

The committee will also examine whether a broad fiscal deficit range should be adopted in place of specific target.

The FRBM panel will submit its report by October 31, it added.

--IANS

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