Government implementing Kelkar panel suggestions to curb fiscal deficit: P Chidambaram

NEW DELHI: The government today said it has accepted several recommendations of the Kelkar Committee on fiscal consolidation and initiated steps to implement them with a view to bridge the revenue-expenditure gap.

"These recommendations (by Vijay Kelkar Committee on fiscal consolidation) are wholesome and have been accepted by the government with certain reservations," Finance Minister P Chidambaram said in written reply in the Lok Sabha.

The Kelkar Committee on fiscal consolidation has recommended a number of reform measures in taxation, disinvestment and expenditure, he said.

On the taxation side, he said, the committee has strongly advocated a transition to the Goods and Services Tax (GST) and a quick review of the Direct Taxes Code (DTC) before its introduction and passing in Parliament.

Besides, the committee has recommended administrative measures to improve tax collection.

The panel has suggested rationalisation of schemes and strict control and monitoring on expenditure side, he said.

The Department of Revenue and the Department of Expenditure have initiated action on recommendations of the committee, he added.