Expenditure management panel to look into Centre’s spending

New Delhi, Sept 5: The newly formed Expenditure Management Commission (EMC) has been tasked with reviewing all matters related to central government spending, including suggesting space for increased developmental spending and reviewing the budgeting process and FRBM rules to suggest improvements, if necessary. It will also suggest measures to improve operational efficiencies of the expenditure process through focus on utilisation, targets, and outcome, according to an official release.

The EMC, which will be headed by former RBI governor Bimal Jalan, will submit its interim report before the FY16 Budget and the final report before the FY17 Budget.

Some other responsibilities of the EMC will include suggesting ways of meeting reasonable proportion of spending on services through user charges, suggesting ways to achieve reduction in financial costs through better cash management system, suggest greater use of IT tools, and suggest improved financial re- porting systems in terms of budget and accounting.

The other members of the EMC include former finance secretary Sumit Bose and former RBI deputy governor Subir Gokarn, apart from a serving additional secretarylevel officer from the finance ministry. The terms of reference also stated that Jalan will have the status of a union cabinet minister. The setting up of the EMC was announced by finance minister Arun Jaitley in the FY15 Budget.

Jaitley has recently said he would expect the commission to give a report on rationalisation of subsidies as early as possible so that some steps can be taken in that direction in the current financial year itself. The minister said some subsidies would indeed need to stay but said there was scope for reform.

The gradual increase in diesel price has brought down the subsidy on the fuel to virtually nil and the direct benefit transfer scheme and a possible hike in urea prices are seen as other major steps that would reduce the subsidy burden on the government.