Establish a 2-tier fiscal council to institutionalise fiscal oversight: CII

The government should set up a two-tier fiscal council — with one at the national level and separate councils for each state — to institutionalise independent fiscal oversight, industry body Confederation of Indian Industry (CII) has urged.

 

“The central fiscal council would conduct ex-ante assessments of Budget projections, evaluate revenue and expenditure estimates, monitor compliance with the Fiscal Responsibility and Budget Management Act, and analyse long-term debt sustainability. State fiscal councils would assess subnational fiscal risks and borrowing limits,” CII said in its latest policy blueprint released on Sunday.

 

The blueprint, titled Policies for a Competitive India, lays out over 250 actionable recommendations across 14 reform areas, developed through consultations with industry leaders, economists, and policy experts.

 

It also recommended setting up an expert committee to devise a framework for systematically reducing the revenue deficit to zero, highlighting the need to prioritise productive capital expenditure over revenue expenditure.

 

“Efforts should be made to balance committed revenue expenditure by increasing receipts through a broader tax base. The proposed fiscal councils could also independently track progress on revenue deficit reduction,” the report said.

 

CII President Rajiv Memani said the report outlines priorities ranging from fiscal policy and public sector reform to taxation, trade, energy, and employment. These, he noted, are closely aligned with the government’s reform trajectory.

 

“CII remains fully committed to working alongside the government to accelerate India’s march towards Viksit Bharat, strengthen its position as a global growth leader, and sustain engagement with a steady stream of reform ideas,” he added.

 

Other proposals include privatisation of non-strategic public sector enterprises, decriminalisation of minor violations, time-bound approvals, single-window clearances, and a second-generation Insolvency and Bankruptcy Code to improve ease of doing business.

 

In the energy sector, the report calls for competitive tariffs, elimination of cross-subsidisation, stronger transmission networks, private participation in nuclear energy, and a green hydrogen road map. It also advocates a simplified goods and services tax (GST) structure, extension of GST to petroleum and real estate, predictable personal taxation, and modernised Customs.

 

To boost trade, it seeks a rationalised tariff structure, better utilisation of free trade agreements (FTAs), stronger investment provisions, and a dedicated e-commerce export strategy.

 

Sanjiv Bajaj, chairman of the task force on reciprocal tariffs, said the government has already instituted “path-breaking reforms” over the past decade, laying a strong foundation for growth and resilience. But as India moves rapidly towards becoming the world’s third-largest economy, he added, the pace and depth of reforms must increase.

 

“With FTAs opening new opportunities and India’s economic engagements expanding worldwide, Indian industry must be prepared to compete with the best. CII’s reform blueprint is both pragmatic and ambitious, aimed at helping India seize the opportunities of the Amrit Kaal, at home and abroad,” he said.