Publication

The paper looks at the trends of fiscal consolidation in India following the introduction of the Fiscal Responsibility and Budget Management (FRBM) Act of 2003. It examines the deviations from the FRBM targets since 2007 and analyzes the recommendations of the Thirteenth Finance Commission in the light of the evolving pressures on India’s public finances. The paper argues that apart from laying out the road map for devolution of resources from the Center to the States, the Commission’s key contribution has been on emphasizing restoration of fiscal discipline by reducing deficits, more transparent use of public debt and greater accountability in managing public finances.