New Delhi, Feb 04: Government today approved a diluted fiscal responsibility and budget management bill, which would enable Centre to check borrowings and reduce deficits to manageable levels.
The long-awaited decision was taken at a cabinet meeting after incorporating the recommendations of the parliamentary standing committee on finance. Unlike the earlier bill, the diluted version of the bill does not set any target for the reduction of fiscal and revenue deficit, parliamentary affairs minister Sushma Swaraj told reporters here after the cabinet meeting under the chairmanship of Prime Minister Atal Bihari Vajapyee.


The bill will be introduced in the forthcoming Budget Session of Parliament.

The fiscal responsibility bill was first introduced in December 2000. It was then referred to the parliamentary standing committee which submitted its report in December 2001. Bureau Report