• A Fiscal Council is a permanent agency.
  • Its mandate is to independently assess government’s fiscal plans and projections.
  • It puts its findings in the public domain.
  • Proposed for India because:
    • India has a chronic problem of fiscal irresponsibility.
    • Government often overstates GDP and revenue projections.
    • It understates expenditures.
    • There is manipulation of budget figures using ‘off-budget’ financing.
    • It aims to bring open scrutiny and accountability to fiscal management.