New Delhi : Experts here have stressed the need for government agencies to judiciously spend allocated funds and asked the Finance Commission to ensure this aspect.
A meeting of the 13th Finance Commission with members of its preceding body Thursday was advised by the predecessors to judiciously look into the needs of the central government and the demands by the states.
The experts further asked the Finance Commission to ensure that expenditure earmarked for a purpose is effectively utilised by government agencies.
The Commission meeting, which was presided over by its chairman Dr Vijay Kelkar, discussed the scope for improving the finances of the central government and the states.
The discussants also suggested modalities to be followed to review the finances of the Centre and the states. The members also told the Commission to adopt various measures to maintain “a stable, sustainable and consistent fiscal environment” for the economic growth of the country.
The 13th Finance Commission was constituted to give recommendations on the sharing of tax receipts between the Centre and states besides suggesting for providing grants-in- aid to the states out of the central government’s consolidated fund.
The Commission will also suggest measures to augment the Consolidated Funds of the states to supplement the resources of the Panchayats and Municipalities. The Finance Commission is expected to submit its final report by October 2009.