FRBM committee on fiscal deficit range set up
Q. Government has set up the FRBM committee on fiscal deficit range. What is the full form of FRBM?- Published on 18 May 16a. Fiscal Responsibility and Budget Management
b. Financial Responsibility and Budget Management
c. Finance Responsibility and Budget Management
d. None of the above
ANSWER: Fiscal Responsibility and Budget Management
Government has formed a 5 member committee under former revenue secretary NK Singh to review the working of the 12 year old FRBM Act and examine the fiscal deficit range instead of the fixed target. Other members of the committee include former finance secretary Sumit Bose, Chief Economic Advisor Arvind Subramanian, RBI Deputy Governor Urjit Patel and NIPFP Director Rathin Roy.
- Committee will submit report to the government by October 31, 2016
- Committee will examine the need and feasibility of a fiscal deficit range as the target in place of existing fixed numbers (percentage of GDP) as goal.
- The way forward is keeping in view the broad objective of fiscal consolidation and prudence and changes required in the context of fiscal consolidation and prudence.
- Instead of fixed numbers as fiscal deficit targets, it is far better to have fiscal deficit range as the target- this provides necessary policy space to the government to deal with dynamic situations.
