New Delhi: Delhi govt is working on a fiscal reform roadmap aimed at curbing expenditure and borrowing, improving the capital’s financial health and keeping public debt at sustainable levels, senior officials said.As part of the proposed reforms, the govt has set a target of limiting the fiscal deficit to 3% of Delhi’s gross state domestic product (GSDP) and capping outstanding debt, including public account liabilities, at 15% of GSDP.The targets form part of measures being undertaken under the Fiscal Responsibility and Budget Management (FRBM) framework. The govt informed the Delhi Assembly about the proposed reforms and tabled a statement outlining rolling fiscal targets during the last budget session.Officials said the framework focuses on generating an adequate revenue surplus that can be channelled towards capital expenditure, while gradually reducing fiscal deficit and debt levels.A senior govt official said the FRBM framework is intended to prevent excessive spending and impose discipline on borrowing. “It seeks to ensure that debt does not accumulate to levels that place an undue burden on future taxpayers,” the official said.Under the proposed framework, the govt will also be required to place annual accountability statements before the legislative assembly.Officials said the measures were aimed at ensuring prudent financial management, maintaining long-term fiscal stability and distributing the burden of debt more equitably across generations.The govt believes the reforms will strengthen Delhi’s finances and create greater room for investment in physical and social infrastructure, as well as human development programmes.
