India`s fiscal responsibility legislation should be reformed: IMF
Washington: Expressing concern at the rising fiscal deficit, the IMF has said that there should be a successor to the Fiscal Responsibility and Budget Management (FRBM) Act to reduce the scope for window dressing in government finances.
India`s fiscal responsibility legislation should be reformed "to reduce opportunities for creative accounting and biased forecasts," said an International Monetary Fund working paper on "India’s Experience with Fiscal Rules".
Although the fiscal deficit of the Central government, as mentioned in the budget documents, was 6.2 percent of gross domestic product (GDP) for 2008-09, in practical terms it worked out to eight percent after taking into account the off-budget expenses, especially the oil bonds.
Suggesting that the government should start fiscal reform as soon as the economy recovers, the IMF paper said the new FRBM framework should "define precisely the accounting framework and definitions for target fiscal indicators".
More from India
More from World
More from Sports
More from Entertaiment
- Shahi Imam meets PM Modi, demands innocent Muslims must not be harassed in name of fighting ISIS
- 12 men rape British teen girl for over 13 months; slapped with 140 years in jail
- Mahendra Singh Dhoni: I allow bowlers to set the field in T20 cricket
- 'Achhe din': Residents of PM Modi's adopted village to get free electricity, work in full swing
- Siachen survivor Lance Naik Hanumanthappa brought to Delhi, Army chief Dabir Singh visits RR hospital