Confederation of Indian Industry (CII) has launched a Fiscal Performance Index (FPI) to assess state and central budgets. The Index incorporates qualitative assessments of revenue expenditure, capital expenditure, revenues, fiscal prudence and the level of public debt arrive at a more holistic picture of fiscal performance than the fiscal deficit to GDP ratio according to the CII.
As an example, the index will consider expenditure on infrastructure, education, healthcare and other social sectors beneficial for economic growth compared to other revenue expenditure. It will also consider tax revenues a more sustainable source of revenues for the government as compared to one-time income sources.
Source- The Economic Times
Static/Current Takeaways Important For LIC AAO Mains 2019:
- Mr Vikram Kirloskar is the President of Confederation of Indian Industries.