Govt Told To Follow Nz Fiscal Laws

The Tarapore committee which submitted its report on capital account convertibility yesterday has recommended that the Government of India align itself as soon as possible on the lines of the Government of New Zealand and adopt disclosures and fix accountability for the fiscal decisions it makes.

The New Zealand government is bound by the Fiscal Responsibility Act as its guideline to adhere to, and acts accordingly.

The act specifies that information and policy documents should be made public and establishes statutory accountability for the government for fulfilling these requirements.

In addition, it specifies principles of sound fiscal policy with the intention that any fiscal strategy proposed by the government can be assessed in relation to these criteria through the information provided.

 

It also provides for more open budgetary processes.

The idea and emphasis is on transparency in government functions especially the fiscal aspects.

The committee has also recommended that the actions taken should present a much clearer picture of the ratio of the gross fiscal deficit (GFD) and the gross domestic product (GDP) as a constituent of the budget as a whole.