High-level committee that revised fiscal consolidation roadmap for Centre and States — set benchmark debt-to-GDP ratios for sustainable public finance.
Tamil Nadu's mounting debt burden of Rs 13.18 lakh crore and simultaneous farm loan waiver announcement has rekindled focus on FRBM limits and state debt sustainability benchmarks recommended by the FRBM Review Committee (2019).
|
Term |
Detail |
|
FRBM Act |
Enacted 2003, institutionalizes fiscal discipline and public debt reduction |
|
FRBM Review Committee |
Chaired by N.K. Singh, submitted report in 2019 |
|
State Debt Benchmark |
Recommended 20% of GDP for state debt sustainability |
|
Current State Debt |
Hovering around 27–29% of GDP, above recommended threshold |
|
Fiscal Deficit Ceiling |
3% of GSDP for state governments |
|
Off-Budget Borrowings |
Opaque borrowings via SPVs to bypass FRBM limits |
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