Fiscal marksmanship

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News:The Government of India’s decision in 2017 to advance the presentation of the Union Budget by February has led to India’s fiscal marksmanship being questioned.

Facts:

About Fiscal marksmanship:

  • Fiscal marksmanship essentially refers to the accuracy of the government’s fiscal forecasts such as revenues, expenditure among others.
  • In the Indian context,the term gained popularity after the then India’s Chief Economic Advisor stressed on fiscal marksmanship in the Economic Survey for the year 2012-13.

Significance of fiscal marksmanship:

  • The main purpose of publicly disclosing the Budget in a democracy and seeking approval from the legislature is to make the policymaking and governance transparent and participatory.
  • However, if these fiscal forecasts turn out to be way off the mark repeatedly, it will undermine the credibility of the Budget numbers and reflects poor fiscal marksmanship.