EXPENDITURE MANAGEMENT COMMISSION

By early September 2014, the GoI constituted an Expenditure Management Commission (EMC) through a Resolution. The EMC will look into various aspects of expenditure reforms to be undertaken by the government and other issues concerning Public Expenditure Management. The Commission has one full time, one part time and one ex-officio members other than Chairman of (Cabinet rank). Dr. Bimal Jalan is its first Chairman. The terms of reference of the Commission are as given below:

(i) Review the major areas of Central Government expenditure, and to suggest ways of creating fiscal space required to meet developmental expenditure needs, without compromising the commitment to fiscal discipline.

(ii) Review the institutional arrangement, including budgeting process and FRBM rules, for enforcing aggregate fiscal discipline and suggest improvements theirin;

(iii) Suggest measures to improve allocative effeciencies in the existing expenditure classification system, including focus on capital expenditure;

(iv) Design a framework to imrpove operational efficiency of expenditures through focus on utilization, targets and outcomes;

(v) Suggest an effective strategy for meeting reasonable proportion of expenditure on services through user charges;

(vi) Suggest measures to achieve reduction in financial costs through better Cash Management Ssystem;

(vii) Suggest greater use of IT tools for expenditure management;

(viii) Suggest improved financial reporting systems in terms of accounting,

budgeting, etc., and

(ix) Consider any other relevant issue concerning Public Expenditure Management in Central Government and make suitable recommendations.