With covid-19 a clear and present threat, vast sums of money will be needed for relief and stimulus measures. An ordinance should be issued to lift the FRBM cap on our fiscal deficit Among all the relics we have in our law books, nothing looks as badly outdated today—and in urgent need of revision—as the Fiscal Responsibility and Budget Management (FRBM) Act of 2003.
It did serve a valid purpose once in aiming to prevent profligate spending by a government, so that future generations would not be saddled with the payback burden, inflation could be kept in better control, and the stability assured could set conditions for the economy to expand faster.