The Fiscal Responsibility and Budget Management (FRBM) Committee headed by Shri N.K. Singh, former Revenue and Expenditure Secretary and former Member of Parliament presented its Report to the Union Finance Minister Shri Arun Jaitley today in his (FM) office in North Block in the national capital.  Other Members of the Committee including Dr. Urjit R. Patel, Governor, Reserve Bank of India (RBI), Shri Sumit Bose, former Finance Secretary, Dr. Arvind Subramanian, Chief Economic Adviser and Dr. Rathin Roy, Director, National Institute of Public Finance & Policy (NIPFP) were also present on the occasion. The Government will examine the Report and take appropriate action.

Earlier, the Government had constituted a Committee in May, 2016 to review the Fiscal Responsibility and Budget Management (FRBM) Act under the Chairmanship of Shri N.K. Singh, former Revenue and Expenditure Secretary and former Member of Parliament.  The Committee consisted of Dr. Urjit R. Patel, Governor, Reserve Bank of India (RBI), Shri Sumit Bose, former Finance Secretary, Dr. Arvind Subramanian, Chief Economic Adviser and Dr. Rathin Roy, Director, National Institute of Public Finance & Policy (NIPFP) as members.

The Committee had wide ranging Terms of Reference (ToR) to comprehensively review the existing FRBM Act in the light of contemporary changes, past outcomes, global economic developments, best international practices and to recommend the future fiscal framework and roadmap for the country.  Subsequently, the Terms of Reference were enlarged to seek the Committee’s views on certain recommendations of the Fourteenth Finance Commission and the Expenditure Management Commission.  These primarily related to strengthening the institutional framework on fiscal matters as well as certain issues connected with new capital expenditures in the budget.

The Committee held extensive consultations with a wide range of stakeholders.  It also received inputs from eminent national and international organisations and domain experts.  The Committee also held interactions with various Ministries of Government of India as well as with the State Governments.

Fiscal framework review under the FRBM Act recommends recalibrated fiscal targets and clearer rules for capital spending. Review of the statutory fiscal framework under the FRBM Act reassessed fiscal rules, institutional arrangements and budgetary practices, recommending recalibration of fiscal targets, clarified treatment of new capital expenditure, and strengthened mechanisms for fiscal discipline. The Committee emphasized stakeholder consultations and considered prior recommendations on expenditure management and institutional architecture, proposing a medium term fiscal roadmap for future budgetary governance.