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Fiscal Discipline Committee
April 2 , 2019
2092 days
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- The Chairman of the Fifteenth Finance Commission N K Singh has emphasised the need for a fiscal council to enforce fiscal rules and for better management of public debt.
- Article 293 (3) of the constitution places an upper limit on the ability of the state governments to borrow. They cannot breach that ceiling.
- But Central Government does not any have constitutional checks on the amount of the money it can borrow.
- India’s debt-to-GDP ratio of the states and the Centre combined is also way too high at 70%.
- An Institutional mechanism like Fiscal Council is needed to enforce fiscal rules and to keep a check on Centre’s fiscal consolidation.
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