NEW DELHI: Finance Commission Chairman N K Singh Thursday made a case for putting in place a “monetary council” as an institutional mechanism to reveal financial consolidation roadmap of the Centre and kingdom governments.
He also stated fiscal federalism is a dynamic process and ‘a Work in Motion.’
Singh changed into speaking at the launch of the e-book ‘Indian Fiscal Federalism’ written via Y V Reddy, who had served as RBI Governor in addition to Finance Commission Chairman.
Referring to a proposal within the ebook, Singh said he too has the same opinion that there should be a few mechanisms to make sure that pure spirit of devolution procedure isn’t undercut by using clever economic engineering or taking recourse to traditions that make it technical and legally tenable but perhaps morally not so.
Emphasizing that guidelines of the sport have to be identical for both the Centre in addition to the states in regards to borrowings, Singh stated, “for kingdom authorities liabilities, Article 293 (3) affords a constitutional take a look at over borrowings. But there aren’t any such restrict at the Centre”.
“I feel that it is time we have an alternative institutional mechanism like fiscal council to put in force financial rules and keep a take a look at at the center’s financial consolidation,” he stated.
Singh, who had also served as revenue secretary in the finance ministry, agreed with the concept in the e book that the Finance Commission as envisaged in the Constitution does now not limit its non-stop functioning besides that it needs to be re-constituted before the tenure ends every five years.
Talking to journalists later, Singh said, “we do need a mechanism for enforcement to be similarly applicable for each the Centre and the states earlier than Finance Commission or every other can work out and lay out a coherent map of fiscal consolidation.”
Recently, Reserve Bank of India Governor Shaktikanta Das too made a case for permanent fame to Finance Commission.
At the ebook launch occasion, former Deputy Chairman of erstwhile Planning Commission Montek Singh Ahluwalia underlined the want for increased allocation of the price range for the municipalities.
Former Finance Minister of Jammu and Kashmir Haseeb Drabu harassed on the need for coordination among the Finance Commission and the GST Council.
“GST Council has no clue about what the Finance Commission is doing, and Finance Commission has an even lesser clue of what the GST Council is doing,” he said, adding there has been a want for an institutional mechanism to clear up differences among the relevant and state governments.