tag:blogger.com,1999:blog-5043138489010794057.post3445273243795701573..comments2024-03-27T15:57:09.192+05:30Comments on Urbanomics: Institutionalizing fiscal policyUrbanomicshttp://www.blogger.com/profile/16956198290294771298noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5043138489010794057.post-51147232897866472852010-09-14T09:07:09.290+05:302010-09-14T09:07:09.290+05:30I agree that it is better to have a council which ...I agree that it is better to have a council which provides such advice on fiscal policy.<br /><br />Maybe, we can also work on making it effective also.<br />In any case it would provide information in public domain which could be used as cannon feed by detractors of government. Probably that is the essence of democracy anyway.sai prasadnoreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-35877027164592214482010-09-10T07:49:10.514+05:302010-09-10T07:49:10.514+05:30i agree sir that these institutions could end up b...i agree sir that these institutions could end up being ignored. but surely it is better to have a professionally competent agency which provides information on the consequences of government spending decisions and finances...<br /><br />just imagine if such councils are mandated to provide the immediate and long-term projections about the fiscal impact of populist policies. atleast some level of more informed debates can take place and the moral suasion impact could be not insignificant.<br /><br />and depending on the magnitude of the powers vested on such councils, they can be more effective. for example, if the FRBM (and let us also bear in mind that the FRBM worked with some level of effect for 3-4 years, before the sub-prime crisis blew it over) can be amended to make it mandatory that the fiscal projections would be provided for by the council and not the government itself, then the off-balance sheet entities would have got reflected more accurately in the fiscal balance sheet. <br /><br />the possibility of the council being captured by the government is real, and is the same with RBI. but RBI has been reasonably fair in its activities over the years despite its officials being appointed by government. such institutions will take time to establish credibility.Urbanomicshttps://www.blogger.com/profile/16956198290294771298noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-64278707631466171532010-09-09T22:54:54.077+05:302010-09-09T22:54:54.077+05:30In India i have heard of several state governments...In India i have heard of several state governments fervently begging the FM to permit them more leeway with respect to the FRBM. They have been wanting to borrow beyond the bounds set by the FRBM. This raises the issue of whether this breach is to be prevented at all cost and under what exigencies this be allowed.<br /><br />Under such circumstances, fiscal councils as suggested could at best provide advice which governments could ignore. Further, since the councils are to be appointed by the same government, they are likely to function as a government department.sai prasadnoreply@blogger.com