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Fiscal Council - Coggle Diagram
Fiscal Council
Intro
CI
Fiscal situation was under stress
even before COVID-19
and this pandemic has only worsened it
D/F
Consolidated deficit
of union and states
could be high as 12% of GDP
and overall debt could go upto 85%
Current year
deficit is estimated
due to sharp decline in revenues
at about 7% of GDP
MB
BP/GE/IS
Transparency Issues
NO
comprehensiveness
transparency and
accountability in the Budget
repeated postponement of targets
timely non-settlement of bill payments
special banking arrangements
remitting the money
to the govt
as disinvestment proceeds
14th Financial Commission
recommended
independent financial council
reported to parliament
by insert
new section in FRBM Act
Fiscal Council
independent fiscal institution (IFI)
mandate
to promote stable
sustainable public finances
should be publicly funded entity
staffed by non-elected professionals
mandated
to provide nonpartisan
oversight of fiscal performance
on key aspect of fiscal policy
Institution
assist in calibrating
sustainable fiscal policy
by making
objective and
scientific analysis
BP
Unbiased report
to parliament helps
raise the level of debate
bring
transparency and
accountability
Scientific estimates
cost of programmes
assessment of forecasts
help in raising public awareness
about fiscal implications
and nature of budgetary constraint
Council
work as conscience keeper
in monitoring rule-based policies
significantly helps
reduce bias estimates
improve budget forecasts
restoring fiscal sustainability
Unique Ideas/Examples
Independent Fiscal Institutions
countries with IFIs
tend to have more
accurate macroeconomics and
budgetary forecasts
likely to raise public awareness
Case sudies
in Belgium, Chile, and UK
show that IFIs
have significantly
contributed to improved
fiscal performances
and strong influence
CON
GI
Fiscal Council
needed to complement
the rule-based fiscal policy
improving
comprehensiveness
transparency
and accountability