Formation of Fiscal Council has been suggested by the Finance Commission as well as by FRBM review committee. Do you agree with the view that the formation of the Fiscal Council will be helpful in portraying the virtue of the fiscal discipline of the government? Give reasons in support of your argument. 10 marks

Mentor’s comment-
  • https://www.thehindu.com/opinion/lead/do-we-need-a-fiscal-council/article32046204.ece
  • In the intro, briefly mention about the mandate of the council.
  • In the body, you can either agree or disagree with the view. As in the above-cited article, you can disagree with the view by mention the issues such as-duplicity of role with FRBM,  issue of lack of demand from accountability, issue of interference with the role of Finance Ministry, issue of overlapping function with CAG as a watchdog etc.
  • Conclude by suggesting the provision of appointment of an ad-hoc committee by CAG before the budget with the mandate of scrutinising the budget.

 

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