Skip to main content

FRBM Panel Report Likly On Monday

panel tasked with recommending a future fiscal roadmap,and whose recommendations are likely tobe incorporated in the coming Union Budget 2017-18,might present its report to Finance Minister Arun Jaitley on Monday.The Fiscal Responsibility and Budget Management (FRBM) committee is chaired by NKSingh,a former member of Parliament and andan ex-revenue and expenditure secretary.The report was to have been or iginally give non October30.That was postponed more than once,after,in turn,being told to consider some recommendations of the 14th Finance Commission,seek the opinion of the Reserve Bank and study the impact of demonetisation
Apaneltaskedwithrecommendingafuture fiscalroadmap,and whoserecommendationsare likelytobeincorporatedinthe comingUnionBudget2017-18, mightpresentitsreportto FinanceMinisterArunJaitley onMonday.
TheFiscalResponsibility and Budget Management(FRBM) committeeischaired byNKSingh,aformer memberofParliament andandanex-revenueand expenditure secretary. The reportwastohavebeenoriginallygivenonOctober30. That was postponed more thanonce,after,inturn,being toldtoconsidersomerecommendations of the 14th FinanceCommission,seekthe opinionoftheReservebank and study the impact of demonetisation.
OnFebruary1,Jaitleyis expectedtopresentapopulist BudgetastheNarendraModi governmentlookstonegate theeffectofapossibleslowingineconomicactivitydueto demonetisation.Onthecards aresopsandhigheroutlayfor micro, small and medium enterprises,agriculture,affordablehousingandathrustfor thesocialsector,infrastructureandjobcreation. The current FRBM roadmapsetsthefiscaldeficit targetfor2017-18atthreeper centofgrossdomesticproduct.Theexistinglawislikelyto beamendedorreplacedwitha newone,basedonthepanel’s recommendations.
Sourcesbelievethepanel will recommend a looser deficittargetfor2017-18,closerto3.5percentofGDP,the same as the current year. And,provideascheduleofsix to eight years to reach a desiredlevel,withflexibility in between for varying of spending.
Itcouldpanelalsosuggest pausesingettingtothetargets.Thecurrentschedule mandatesconsecutivereductionsinthegapbetweentotal expenditureandtotalrevenue. “Apausewouldmeanthatif the minister achieves the deficittargetforanygiven year,hecanstayatthatnumberasapercentageofGDPfor acoupleofmoreyearsbefore reducingitfurther,”saidan official.Asreportedearlier,the FRBMpanelisexpectedtorecommendcertainconditions underwhichextraspendingis necessary. These could include macro economic headwinds,naturaldisasters orincaseofwar.
Business Standard New Delhi,20th January 2017

Comments

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025