Panel recommends complete overhaul of FRBM act; suggests govt not to keep fiscal deficit below 3%

NEW DELHI: NK Singh panel on review of Fiscal Responsibility and Budget Management Act (FRBM) has recommended the government to completely overhaul the act.

According to reports on ET Now, in its final report submitted to Finance Ministry today, the panel has recommended against following an 'aggressive fiscal consolidation path'.

In its report, the panel has advocated expansionary fiscal consolidation policy to aid growth and has suggested the government that there is no need for reducing fiscal deficit below 3% in near term.


Government is likely to incorporate the recommendations in the Budget.

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.