Relevance: Prelims: Economy
Why in news?
- The 15th Finance Commission (FC) has constituted a committee to review the fiscal consolidation roadmap of the general government.
About:
- The committee, to be headed by chairman of the FC will recommend a debt and fiscal consolidation roadmap for FY21-FY25 for the central government, overall states and general government and attempt building up scenarios for public sector enterprises.
- The general government consists of central, state and local governments and the social security funds controlled by them.
Role of the committee:
- As per the terms of reference of the committee, it will make recommendations on the definition of deficit and debt for each of the mentioned levels of government by considering all explicit and measurable liabilities of India and by bringing in consistency between the definition of debt and deficit.
- The committee is also tasked with laying down the principles for arriving at the debt of the general government and consolidated public sector while avoiding double-counting.
- The committee will be assisted in terms of analytical and data support by a team from the National Institute of Public Finance and Policy and the economic division of the FC secretariat.
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