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

Master sculptor recalls the making of the Shankaracharya statue

The Golden Chisel: The Story Behind the Making of Ram Lalla  By Seethalakshmi S. and Rahul Nandan Rupa Publications, 168 pages, Rs 395  

Mumbai’s missing affordable homes

Mumbai’s real estate market keeps growing, yet homeownership remains out of reach for much of its population. Three experts – urban researcher Hussain Indorewala, urban planner Vidyadhar Phatak and developer Kamlesh Thakur of NAREDCO Maharashtra, agree that simply constructing more apartments

Rubio denies US foreknowledge of Starlink restrictions in Ukraine

US secretary of state Marco Rubio has said he was unfamiliar with the Wall Street Journal report suggesting Elon Musk had decided to throttle Starlink services in Ukraine, but rejected claims that Washington had ordered the restrictions to pressure Kyiv.   “There was no

Can AI change India’s breast cancer story?

Breast cancer has become a public-health challenge in India. The greatest opportunity is to find cancers earlier. Artificial intelligence (AI) is opening a new era in breast cancer detection. AI systems can analyse mammograms and other breast-imaging studies, identify subtle abnormalities and assist radi

Farm stability in the time of climate change

Indian agriculture is experiencing significant climate volatility, while the world economy seems to be in a highly volatile situation. Economic indices from various countries show that they need to recalibrate their strategies to withstand economic headwinds. In such a challenging situation, a country li

El Niño threatens India’s Rabi crops

India’s southwest monsoon ended with a 13% rainfall deficit in 2026, its weakest performance in a decade, raising concerns over agricultural production, water security and the upcoming rabi season. With El Niño expected to persist into early 2027, experts warn that declining soil moisture, dep

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter