The term of the Fiscal Responsibility and Budget Management (FRBM) Review Committee has been extended up to November 20, the finance ministry said in a statement late Monday. The committee, headed by former revenue and expenditure secretary N.K. Singh, was supposed to submit its report by October 31.
“Approval of the Ministry of Finance, Department of Economic Affairs is hereby conveyed to the extension of the term of the FRBM Review Committee up to November 20, 2016,” the statement said.
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The committee will review the working of the FRBM Act over the last 12 years along with examining the feasibility of having a fiscal deficit range instead of a fixed number as a percentage of gross domestic product at present.
The committee will also study the feasibility of aligning the fiscal expansion or contraction with credit expansion or contraction in the economy along with looking into various factors, aspects, considerations going into determining the FRBM targets.
While presenting the Budget for 2016-17, though finance minister Arun Jaitley had stuck to the fiscal consolidation roadmap, he had announced setting up of a committee to review the FRBM Act to examine the possibility of a fiscal deficit range as the target, instead of the current practice of fixed numbers as targets.