War of words breaks out between CEA, other members of FRBM panel

FRBM panel disagrees with CEA, a fellow member, on why and how to address deficits

Chief economic advisor (CEA) Arvind Subramanian has given a dissent note to the recommendations given by the panel reviewing the existing Fiscal Responsibility and Budget Management (FRBM) law. He suggests a focus on the primary deficit, rather than the “multiple” goals the others recommend. The primary deficit is defined as the fiscal deficit after excluding interest payments by the government.

Probably for the first time in a panel report, the others — former finance secretary Sumit Bose, Reserve Bank governor Urjit Patel, National Institute of Public Finance and Policy chief Rathin Roy and former expenditure secretary N K Singh (chairman) —