Finance panel for 'calibrated' exit strategy from stimulus

13th Finance Commission's report tabled in parliament

PTI | February 25, 2010



The 13th Finance Commission has asked the government to adopt a "calibrated" strategy for withdrawing stimulus measures provided to spur the economy in the wake of the global economic crisis.

Although the Economic Survey has favoured providing further stimulus to the exports sector, the economic document also factors in the recommendations of the Finance Commission and said that the suggestions have to be taken on board in shaping the fiscal policy for 2010-11 and medium term.

The Commission recommended "a calibrated exit strategy from the expansionary fiscal stance of 2008-09 and 2009-10."

Both the Survey and the Finance Commission's report were tabled in Parliament on Thursday.

The Commission also recommended increase in states share to 32 per cent of Central tax proceeds from the current level of 30.5 percent.

"The share of states in net proceeds of shareable Central taxes shall be 32 percent every year for the period of the award (2010-11 to 2014-15)," said the Commission, headed by former finance secretary Vijay Kelkar.

The Commission also proposed that a new Fiscal Responsibility and Budgetary Management (FRBM) Act should have a space for relaxing targets of deficits on account of economic shocks.

"The FRBM Act needs to specify the nature of shocks that would require relaxation of the targets thereunder," the commission recommends.

The overall approach of the recommendations is to foster "inclusive and green growth promoting fiscal federalism," said the Survey.

Comments

 

Other News

“Script is the real hero”

Basking in the success of the new web series, ‘Scam 1992: The Harshad  Mehta Story ’,on SonyLIV, the OTT platform from Sony stable where the lead actors are new faces, NP Singh, MD and CEO of Sony Pictures Networks, has said that the script is the new hero. He credited the s

India’s active cases below 10% of total cases for three days

India’s trend of steadily decreasing active cases continues unabated. The number of Active Cases has remained below 10% of the total cases for the last three days, suggesting only one in 10 cases is active Covid-19 patient. The active cases comprise merely 9.29% of the total positive c

Cabinet clears bonus for non-gazetted employees

The union cabinet chaired by prime minister Narendra Modi on Wednesday gave its approval to pay productivity linked bonus (PLB) for 2019-20 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, and ESIC, with a financial implication of Rs.2,791 crore.

Covid-19: Daily new cases fall below 50K

India has leaped across several significant milestones in its fight against Covid-19. The new confirmed cases in the 24 hours to Tuesday morning have fallen below 50,000 (46,790, to be precise) for the first time in nearly three months. The last time the number of new cases was close to this level was on J

Media taking advantage of a divided Bollywood: Shatrughan Sinha

Legendary film star and politician Shatrughan Sinha has said that friendship in Bollywood is limited to onscreen, and there is no unity and some news channels are taking advantage of this situation. “Groups within the industry or their supporters may sometimes come together for some c

‘2.40 lakh TB cases went unreported in India in 2019’

In India, only 2.40 million out of an estimated 2.64 million cases of tuberculosis were reported to the government, that is, 2,40,000 TB patients went unreported, in 2019, according to the WHO Global Tuberculosis Report 2020. The reporting of TB cases, however, has significantly increased ov

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter