Improved tax revenue realization and better aligned expenditure are the components of fiscal consolidation as the fiscal deficit reaches at a manageable level. The fiscal position of both central and state governments worsened significantly since the fiscal consolidation achieved after the 1991 bop crisis. After decades of policy forbearance and missed opportunities, sri lanka is at an inflection. The report stresses the need and urgency to address indias fiscal deficit. The 9member committee was headed by former finance secretary vijay kelkar and submitted its report on 19 november 2015. Report the role of expenditure reform in fiscal consolidations. In order to decide on the necessary amount of fiscal consolidation, policy makers needed to incorporate their views on gdp and its future growth rate to assess debt sustainability. Fiscal consolidation policies and corporate investment composition senay agca george washington university. Kelkar committee roadmap for fiscal consolidation ministry of. Government should increase the excise duty on merit goods. Since 2008, the ez economy has moved away from it precrisis growth trend.
Fiscal year 2011 report to congress national park service. Fiscal consolidation refers to the policies undertaken by governments national and subnational levels to reduce their deficits and accumulation of debt stock key deficits of government are the revenue deficit and the fiscal deficit. Eu fiscal rules are likely to lead to disappointment. The annual report for 2012 was approved by the chairman of the fiscal council, according to article 43, paragraph 2, letter d of law no. The role of expenditure reform in fiscal consolidations. Fiscal consolidation during a depression nitika bagaria, dawn holland and john van reenen special paper no. Kelkar was set up to devise the fiscal consolidation roadmap for 2012 to 201415 recommendations. The fiscal research division is a nonpartisan, central staff agency that provides fiscal and policy information to the legislature.
Working paper series the confidence effects of fiscal consolidations roel beetsma jacopo cimadomo oana furtuna massimo giuliodori note. Kelkar to assist the government in formulating a path of fiscal consolidation. This is especially so in view of medium and longterm spending pressures on public finances, related, inter alia, to ageing. The chapter analyses current fiscal positions and announced fiscal strategies, consolidation plans, and the expenditure and revenue measures for 30 oecd member countries. We have prepared the fiscal reform subcommittee preliminary report presented here based on the results of. Views are split regarding the most appropriate consolidation strategy to follow, in particular considering. High and persistent fiscal deficit is a sign of healthy and growing economy.
This working paper should not be reported as representing the views of the european central bank ecb. The committee formation was announced during the 201617 budget by fm arun jaitely. Authorized for distribution by petya koeva november 20. Thirteenth finance commission, and presented at the planning commission, the 46th annual. The committee was formed following the finance ministers. Fiscal consolidation means the steps taken by government to increase its shareholding in psus. We make an attempt to address this question using a. Success and failure of fiscal consolidation in the oecd. With many economies around the world in fiscal consolidation mode, there is an ongoing. The fiscal system councils fiscal system committee has deliberated on the topic of japans fiscal structure and the future direction of fiscal reforms based upon overseas and local surveys. Spending and revenue options cbo mandatory spending defense option 1 introduce minimum outofpocket requirements under tricare for life 19 energy option 2 transfer the tennessee valley authoritys electric utility functions and. The committee was asked to recommend midterm corrections for the current fiscal year 2012 and reforms for medium term fiscal consolidation. Report of the vijay kelkar committee on roadmap for.
Fiscal consolidation is required in most oecd countries. Vijay kelkar to assist the government in formulating a path of fiscal consolidation. Lovise bauger against the background of recovering growth and remaining fiscal consolidation needs, reforming tax expenditures may offer a promising avenue to raise revenue and, at the same time, improve efficiency of the tax systems. Fiscal outlook for the remaindernatural resources of the 200002 biennium. According to jeanclaude trichet, writer for the financial times, adjusting spending while boosting longterm growth is. The challenges of fiscal consolidation and debt reduction. Chapter 1 14 submission for the division of revenue 2012 chapter 1 south africas transition to a consolidated budget and fiscal guidelines. As fiscal consolidation was implemented, we witnessed its negative effects on output growth. Back to index chapter 1 south africas transition to a.
Government should sell unused land owned by various ministries, if it is not generating any revenue. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The role of expenditure reform in fiscal consolidations barry bosworth 1 1 this paper was prepared for a seminar sponsored by the imf. Nevertheless the fact remains that the government is determined enough to make its efforts bear fruit on the fiscal consolidation programme in the mediumterm. If revenue targets are not met, fiscal consolidation can go off the track as the. Should fiscal consolidations be frontloaded or proceed at a more steady pace, and how does this affect growth. Which of the following, isare not recommend by kelkar committee on fiscal consolidation. Fiscal illusion, fiscal consolidation and government. Options and strategies for fiscal consolidation in india. The nk singh committee suggested a draft debt management and fiscal responsibility bill, 2017 to replace the earlier fiscal responsibility and budget management act, 2003 frbm act. Transmittal letter html pdf 314 kb manual 2,721 kb appendices 2,143 kb. Consolidated summary report for the fiscal year ended. Background the topic which i am going to talk about today is very important, particularly in the present context of the macroeconomic management challenges in sri lanka. In these reports, it largely confined itself to fiscal consolidation and prudence and suggested some changes.
The committee believes that this report seeks to align our fiscal regime to the. The fiscal responsibility and budget management frbm. Krishnamurthy, sanjiv mishra, deepak mohanty, indira. Kelkar committee was created to suggest the roadmap for implementation of direct tax code. The committees report was put on the website a few weeks ago. Impact of fiscal consolidation on debt levels economics help. A 3member committee headed by the former finance secretary and th finance commission chairman, vijay l. Fiscal deficit in a governments budget is not necessarily bad for the economy. Article pdf available in economic and political weekly 48. Report summary roadmap for fiscal consolidation in august 2012, the finance minister constituted a committee under the chairmanship of dr vijay kelkar to outline a roadmap for fiscal consolidation. This paper tests five hypotheses explaining the success and failure of fiscal consol. Revenue based fiscal consolidation towards sustainable. Summary report of consolidated operating results for fiscal 2010 year ended december 31, 2010. September 1, 2016, the department shall report to the chairmen of the house committee on appropriations and the senate committee on finance on the efforts undertaken by the department to establish the program.
Fiscal adjustment is moderated by some attempts to reverse this trend. For this purpose, we will modify a standard median voter model incorporating a type of fiscal illusion based, in a analogous way to the case of investments, on the idea that voters may not be aware of the true composition of government expenditures because all. Transmittal letter html pdf 154 kb manual 2,330 kb appendices 2,6 kb sed cfr due date extension 187 kb july 2018 to june 2019. Vijay kelkar submitted its report to the finance ministry on november 19, 2015. Report summary report of the committee on revisiting and revitalising the ppp model of infrastructure the committee on revisiting and revitalizing the ppp model of infrastructure development chair. Versions of the paper have also been presented at a department of economics seminar at iseg, at the 9th bmrcqass conference on macro. Government o cials should also consider when to adopt whatever policy they have.
Consolidated fiscal report manuals currently available files are. The use of tax expenditures in times of fiscal consolidation. A large fiscal multiplier of close to 1 can cause debt consolidation to increase debt to gdp ratios in the short term. To achieve fiscal consolidation, government should increase the nonplan expenditure. Govt sets up frbm committee on fiscal deficit range. Because government miss their debt targets, they may engage in even more levels of fiscal consolidation trying to meet targets. The challenges of fiscal consolidation and debt reduction in the caribbean charles amoyartey, machiko narita, garth peron nicholls, joel chiedu okwuokei, alexandra peter. Pdf fiscal consolidation, macro fundamentals and growth in. Presence or absence of changes in specified subsidiaries that involved changes in the scope of. High deficits, unproductive expenditure, and tax distortions have constrained the economy from realising its full growth potential. This committee was mandated by the finance minister to give a report outlining a roadmap for fiscal consolidation in a medium term framework in pursuit of the frbm act and related targets. Report of the subcommittee on economic development and an. Data and materials for the fiscal year 1979 finance. The use of tax expenditures in times of fiscal consolidation authors.
Long, chairman february 1978 printed for the use of the committee on finance n. Recently, the kelkar committee published a roadmap for fiscal consolidation. Fiscal reform subcommittee preliminary report june 2001. This document is an annotated version of the joint conference committee report on the continuation, expansion, and capital budgets for fy 201415 as enacted in s. Panel submits report on fiscal consolidation roadmap to.
See the report of the committee on roadmap for fiscal consolidation. The committee met several times to deliberate these issues. Fiscal consolidation can have longterm benefits, but whether it is successful depends on how it is designed and implemented. The indian economy is presently poised on the edge of a fiscal precipice, making corrective measures aimed at speedy fiscal consolidation an imperative necessity. Fiscal committee of the general court state house concord, new hampshire 03301 and the honorable, benjamin lefebvre chair, house fish and game and marine resources committee and the honorable, russell prescott chair, senate energy and natural resources committee in accordance with rsa 214. Fm statement on kelkar committee report, fiscal roadmap. Projections for selected macroeconomic indices suggest that ghana has good economic prospects over the mediumterm, given prudent fiscal management, with a sound basis provided for the private sector.
The consequences of europes fiscal consolidation world. We also investigate the degree to which, according to our simulations, the ezs fiscal consolidation has added to the weak growth performance of the ez economy over the 201120 period. The thirteenth finance commission laid out a consolidation plan in. Revenue and expenditure gaps and fiscal consolidation.
In 2010, president obama created the bipartisan national commission on fiscal. The committee was expected to complete this task by the end of august. The gains from the economic reforms introduced in india in early nineties could not be sustained for a much longer period. Fiscal consolidation is a process where governments fiscal health is getting improved and is indicated by reduced fiscal deficit. Fiscal consolidation policies and corporate investment. In this paper a fiscal consolidation programme for india has been presented. Torres authorized for distribution by preliminary draft please do not quote may 20 abstract several governments still need to adjust their fiscal balance after the great recession. In fact, according to many economists, fiscal deficit, or borrowing by the government, is an integral part of fiscal policy and hence is inevitable.805 1347 183 429 1473 1544 1441 769 219 582 1156 20 851 1517 165 526 817 616 464 1428 1563 1299 649 911 702 108 1408 911 470 161 913 250 215 469 300 528 396 135