Moneycontrol
Jul 13, 2017 08:14 PM IST | Source: PTI

FinMin to take decision on N K Singh panel report soon

The government would soon take a decision on various suggestions of N K Singh panel on fiscal management to further contain fiscal deficit, a senior finance ministry official said.

The government would soon take a decision on various suggestions of N K Singh panel on fiscal management to further contain fiscal deficit, a senior finance ministry official said.

"There are many important recommendations (of N K Singh panel). Some of them would be part of the budget...very soon the government will take a decision on that," the official said.

The government will follow calibrated measures to bring down fiscal deficit which will also impact the debt level that is still high.

In Union Budget 2017-18, the fiscal deficit has been pegged at 3.2 percent, lower than 3.5 percent in the last financial year.

The Fiscal Responsibility and Budget Management (FRBM) committee, headed by Singh, a former revenue secretary, recommended keeping the budgetary deficit at 3 percent of the GDP in three years to March 2020.

It also suggested progressively reducing it to 2.5 percent by 2022-23.

Besides, the panel suggested setting up of a new fiscal council as an autonomous body under finance ministry.

The official further said India is the fastest growing economy in the world despite some blips last year.

"Those things have played out and institutions expect India to resume plus seven percent growth, the highest in the world," the official, who did not wish to be identified, said.

There is some stress in the financial sector, especially the banking system, and that is an area where a lot of action is required, he added.
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