The committee headed by former secretary in the finance ministry and BJP member N.K. The committee headed by former secretary in the finance ministry and Bharatiya Janata Party (BJP) member N.K. The government had mandated the committee to explore whether it should adopt a flexible fiscal deficit target instead of a fixed number every year. There is now a school of thought which believes that instead of fixed numbers as fiscal deficit targets, it may be better to have a fiscal deficit range as the target, which would give necessary policy space to the government to deal with dynamic situations. It also sought to examine the need and feasibility of having a “fiscal deficit range” in place of the existing fixed numbers (percentage of GDP) as a fiscal deficit target.

Source: Mint January 23, 2017 05:02 UTC