The chairman of the 15th Finance Commission NK Singh on Thursday said a new fiscal architecture for both the Centre and states is needed.
Singh speaking to CNBC-TV18 said the states have the option of aligning their FRBMs (Fiscal Responsibility and Budget Management)with the Centre if they want to use the fiscal escape clause.
Singh said, “We have decided to constitute a fiscal committee which will also address that one particular recommendation contained there on a legal framework for fiscal architecture. It is just a thought as I really think that whether such a legal framework would be useful or not, would be practical or not.”