Lack of FRBM target monitoring for Union government: Union government monitors the fiscal target of the state government but there is no formal body to oversee union government fiscal targets.
Lack of adherence to FRBM: There has been a lack of adherence to the FRBM act, 2003 as many times the fiscal deficit target has been flouted.
Post facto assessment: The audit of FRBM by Auditor general is merely a post facto assessment rather than a pre situational assessment.
Incorrect revenue projections: Moreover there has also been a problem of incorrect revenue forecast that has led to funding cuts for the programme at the middle of the financial years.
Positive Impact
Transparency & accountability: The setting up of such body will ensure transparency in government functioning, reduce the debt level as a percentage of GDP and creates accountability by providing an independent assessment of union government fiscal performance.
