In pursuance of the Budget Announcement 2016-17, the Government has constituted a five Member Committee to comprehensively review and give recommendations on the FRBM roadmap for the future.

The composition of the FRBM Review Committee is as follows:

(i)  Shri N.K. Singh, Former Revenue Secretary & Expenditure Secretary &Former Member of Parliament(Rajya Sabha) : Chairman

(ii)  Shri Sumit Bose, Former Finance & Revenue Secretary: Member

(iii)  Dr. Arvind Subramanian, Chief Economic Advised (CEA) : Member

(iv)  Shri Urijit Patel,Deputy Governor,RBI: Member

(v)  Shri Rathin Roy, Director, NIPFP: Member

The Terms of Reference (ToR) of the Committee are as under:

(i)    To review the working of the FRBM Act over last 12 years and to suggest the way forward, keeping in view the broad objective of fiscal consolidation and prudence and the changes required in the context of the uncertainty and volatility in the global economy;

(ii)    To look into various aspects, factors, considerations going into determining the FRBM targets

(iii)   To examine the need and feasibility of having a ‘fiscal deficit range’ as the target in place of the existing fixed numbers(percentage of GDP) as fiscal deficit target; if so, the specific recommendations of the Committee thereon; and

(iv)   To examine the need and feasibility of aligning the fiscal expansion or contraction with credit contraction or expansion respectively in the economy.

The Committee will make its assessment and provide its views on the expected impact of its recommendations on the General Government deficit and other FRBM parameters. The Committee will also examine and give recommendations on any other aspect considered relevant in relation to the determination and implementation of the FRBM roadmap. The Committee may be entrusted with additional ToR, if considered necessary. In this context, the Committee may consult Departments/Agencies of Government, experts and institutions, as considered necessary, and determine its own procedures.

The Budget Division of Department of Economic Affairs, Ministry of Finance will provide necessary secretarial and logistics support to the Committee.

The Committee shall submit its Report to Government by the 31st October, 2016.

FRBM framework review initiated; committee to recommend targets, deficit range feasibility and alignment with credit cycles. Constitution of a five member expert committee to review and recommend a roadmap for the Fiscal Responsibility and Budget Management framework, including review of past operation, assessment of factors informing FRBM targets, feasibility of a fiscal deficit range in place of fixed targets, alignment of fiscal stance with credit cycles, and assessment of expected impact on the general government deficit; supported by the Budget Division and authorised to consult stakeholders and determine procedures.