Kelkar committee report
Kelkar committee report
Kelkar committee report
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FOREWORD<br />
This Committee was mandated by the Finance Minister to give a <strong>report</strong> outlining a roadmap<br />
for fiscal consolidation in a medium term framework in pursuit of the FRBM Act and related<br />
targets. The Committee was expected to complete this task by the end of August.<br />
The Committee met several times to deliberate these issues. During our discussions, the<br />
Secretary of each department of the Finance Ministry and the Chief Economic Advisor gave<br />
us the benefit of their valuable views. Similarly, the Ministry of Petroleum and Natural Gas<br />
and Department of Fertilizer give their inputs. The Budget Division and Economic Division<br />
of the Ministry of Finance assisted the Committee in all its deliberations. While all the data<br />
were provided by the Budget and Economic Divisions, we take responsibility for our analysis<br />
and projections.<br />
The Committee was charged with the task of introducing mid-term corrections in the current<br />
fiscal year 2012-13 and to chart a medium term framework on this basis, for the remaining<br />
time horizon of the Thirteenth Finance Commission. These corrections have to be necessarily<br />
feasible from a political economy perspective so as to carry credibility.<br />
Keeping both urgency and credibility as touchstones, we have proposed necessary policy<br />
actions which are within the realm of the feasibility. While proposing a frontal attack on<br />
inequitable subsidies, we have kept in mind the need for maintaining the sinews of growth as<br />
well as the social protection needs of disadvantaged sections of our society. By protecting<br />
public investment and reducing public borrowing, we would “crowd in” private investment<br />
and thus achieve higher growth and employment.<br />
The Committee wishes to place on record its special thanks to the Budget Division and<br />
Economic Division of the Ministry of Finance. We hope that this <strong>report</strong> and subsequent<br />
public discussions will enable the Government to take the policy actions recommended in this<br />
<strong>report</strong>.<br />
September 03, 2012<br />
Vijay <strong>Kelkar</strong>, Chairman<br />
Indira Rajaraman, Member<br />
Sanjiv Misra, Member
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