Reserve Bank governor Shaktikanta Das on Tuesday underlined the need for sticking to the fiscal roadmap by adopting a commonly agreed expenditure code-based spending plan to address the socioeconomic challenges. He also advocated giving permanent status to the finance commission.
The comments from the former-economic-affairs- secretary-turned-central banker assume importance as the Government for two consecutive terms have missed it fiscal deficit targets by 10 bps in the outgoing fiscal year. Many analysts fear that even the upwardly revised fiscal deficit target of 3.4 percent may be difficult to meet given the massive shortfall indirect tax collection and also shortfall in other budgeted non-tax revenue.
Das, speaking at the launch of a book ‘Indian Fiscal Federalism’, by former RBI governor YV Reddy along with GR Reddy here this evening, Das said there is now general agreement about the importance of fiscal consolidation roadmaps both at national and state levels.
