The Fiscal Responsibility and Budget Management (FRBM) panel headed by former Revenue Secretary and Rajya Sabha MP NK Singh, which will be submitting its report to Finance Minister by October 31, is likely to come up with a new roadmap.
The existing FRBM roadmap is twelve years old and so it is likely to be revamped sources have told CNBC-TV18.
In the new roadmap, there is a likelihood that goods and services tax (GST) could be one of the most important variables over the next 12-18 months.
However, according to Dr Singh, GST is not part of the official terms of reference for the panel.
Meanwhile, the existing terms of reference to the panel have been expanded – the 13th and 14th finance recommendations will also be looked at by the panel.
The 13th Finance Commission that was held by Vijay Kelkar had a separate chapter on GST, wherein it was called the Grand Bargain Scheme – it was suggested that Rs 15,000 crore corpus should be created by the government to give to assurance to states in terms of their compensation, in case there is revenue loss on account of GST rollout.
The panel is also supposed to look into recommendations of the Expenditure Management Commission.
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