Q.5)The deteriorating state of fiscal health has once again raised the question of setting up a fiscal council. Critically examine.
Why this question:
Important part of GS paper- III.
Key demand of the question:
Feasibility of setting up a fiscal council as recommended by the 13th and 14th FC, benefits it will have and the challenges ahead.
Critically examine- Look in close detail and establish the key facts and important issues surrounding the topic. Try and offer reasons as to why the facts and issues identified are most important, as well as explain the different ways they could be construed.
Introduce by defining fiscal council and various committees that have recommended setting it up.
In the first part, write about the advantages of setting up a fiscal council and how it will help in improving the fiscal health of the economy.
In the next part, write about challenges involved in this process.
Conclude with the importance of having sound fiscal health of the economy.