NEW DELHI: Finance Commission Chairman N K Singh Thursday made a case for putting in a “monetary council” as an institutional mechanism to monitor the monetary consolidation roadmap of the Centre and kingdom governments.
He also stated monetary federalism is a dynamic procedure and ‘a Work in Motion.’
Singh became speaking on the release of the ebook ‘Indian Fiscal Federalism’ written by way of Y V Reddy, who had served as RBI Governor and Finance Commission Chairman.
Referring to an offer within the e-book, Singh said he too consents that there needs to be some mechanism to ensure that simple spirit of devolution process is not undercut with the aid of smart economic engineering or taking recourse to traditions that make it technical and legally tenable however perhaps morally no longer so.
Emphasizing that rules of the sport should be identical for both the Centre as well as the states about borrowings, Singh stated, “for country authorities liabilities, Article 293 (3) affords a constitutional test over borrowings. But there is not any such restriction on the Centre”.
“I feel that it is time we’ve got an opportunity institutional mechanism like the financial council to put into effect fiscal regulations and keep a check at the center’s financial consolidation,” he said.
Singh, who had also served as sales secretary within the finance ministry, agreed with the suggestion inside the e-book that the Finance Commission as envisaged in the Constitution no longer limit its non-stop functioning except that it needs to be re-constituted earlier than the tenure ends every five years.
Talking to journalists later, Singh said, “we do need a mechanism for enforcement with a purpose to be similarly applicable for each the Centre and the states earlier than Finance Commission or every other can training session and layout a coherent map of fiscal consolidation.”
At the book launch occasion, former Deputy Chairman of erstwhile Planning Commission Montek Singh Ahluwalia underlined the need to grow the municipalities’ finances allocation.
Former Finance Minister of Jammu and Kashmir Haseeb Drabu was confused at coordination among the Finance Commission and the GST Council.
“GST Council has no clue approximately 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 need for an institutional mechanism to resolve variations between the principal and kingdom governments.