Set up 'fiscal council' to enable better economic decision: Rathin Roy

Economist Rathin Roy outlined governmental constraints in the budget making aspect of the Indian public finance

Noted economist Rathin Roy today suggested setting up of a 'fiscal council' to plug the gaps in the public financial sector and enable better economic decision-making.

Roy, Director of National Institute of Public Finance and Policy, made the suggestion while delivering a lecture on the topic of "Why fiscal rectitude matters". The lecture was organised by the Central Vigilance Commission (CVC).

He dealt with the structural roots of Indias fiscal and revenue deficits and outlined governmental constraints in the budget making aspect of the Indian public finance, according to a statement issued by the personnel ministry.

The propensity to fund revenue expenditure from borrowing was explained and some unique features of Indias taxation system as well as its relationship with the practice of deficit financing of the economy was explained in detail by Roy, the statement said.

"The speaker also identified a gap in the analytical and policy making system in the public financial sector, and he felt that the institution of a fiscal council on the lines of those set up in many other countries is a long term solution to this problem, in order to enable better economic decision making," it said.

The National Institute of Public Finance and Policy (NIPFP) is an autonomous research institute under the Ministry of Finance.

Central Vigilance Commissioner K V Chowdary, Vigilance Commissioner T M Bhasin and Secretary, CVC, Nilam Sawhney, were present on the occasion.

Various Chief Vigilance Officers (CVOs) based in Delhi and NCR attended the lecture along with CMDs, board of directors and other officers of the vigilance administration, the statement said.