#5MinRead #Mains2020 #Topic07 #GS2 #GS3
Fiscal Council
A fiscal council is a permanent agency with a mandate to assess the government’s fiscal plans and projections against parameters of macroeconomic sustainability.
- It puts out its findings in the public domain.
- It recommended by both 13th and 14th Finance Commission
Significance:
- Raises the level of debate.
- Boost accuracy.
- Greater transparency and accountability.
- Raises the public awareness
- Understand the nature of budgetary constraint.
- More accurate macroeconomic and budgetary forecasts.
Need for Fiscal Council?
- Tax maladministration
- Lack of coordination between GST and Finance Commission
- Overestimated revenue growth and underestimated expenditure growth.
- Limiting on the Center’s borrowing
- Fixing up fiscal deficit
Conclusion
FC ensures the checks and balances in the system for greater good and will help in improving comprehensiveness, transparency and accountability of budgetary data.
Fiscal Council
A fiscal council is a permanent agency with a mandate to assess the government’s fiscal plans and projections against parameters of macroeconomic sustainability.
- It puts out its findings in the public domain.
- It recommended by both 13th and 14th Finance Commission
Significance:
- Raises the level of debate.
- Boost accuracy.
- Greater transparency and accountability.
- Raises the public awareness
- Understand the nature of budgetary constraint.
- More accurate macroeconomic and budgetary forecasts.
Need for Fiscal Council?
- Tax maladministration
- Lack of coordination between GST and Finance Commission
- Overestimated revenue growth and underestimated expenditure growth.
- Limiting on the Center’s borrowing
- Fixing up fiscal deficit
Conclusion
FC ensures the checks and balances in the system for greater good and will help in improving comprehensiveness, transparency and accountability of budgetary data.