18.28         ndian     onom
     regard to DBT with regard to LPG and kerosene                 discipline and suggest improvements
     consumers—Chandigarh and 8 districts of                       theirin;
     Haryana have become kerosene free. Besides, 84          (iii) Suggest measures to improve allocative
     Government schemes have also been boarded on                  effeciencies in the existing expenditure
     the DBT platform. The idea of DBT will also be                classification system, including focus on
     key to India’s transition to a cashless economy—              capital expenditure;
     as pointed by the Economic Survey 2015-16 and           (iv)  Design a framework to imrpove
     vindicated in the post-demonetisation period.                 operational efficiency of expenditures
           The Economic Survey 2015–16 suggested                   through focus on utilization, targets and
     the DBT solution for farm loans and interest                  outcomes;
     subvention schemes availed by the farmers. It            (v)  Suggest an effective strategy for meeting
     further advised for replacing the existing system             reasonable proportion of expenditure on
     of MSP/procurement based PDS with DBT                         services through user charges;
     which will free the market of all controls on           (vi)  Suggest measures to achieve reduction
     domestic movement and import. The present                     in financial costs through better Cash
     system distorts the concept of a market and needs             Management Ssystem;
     to be discontinued to enhance productivity in          (vii)  Suggest greater use of IT tools for
     agriculture, as per the Survey.                               expenditure management;
                                                           (viii)  Suggest improved financial reporting
        exPendIture management                                     systems in terms of accounting,
        commIssIon                                                 budgeting, etc., and
     By early September 2014, the GoI constituted an         (ix)  Consider any other relevant issue
     Expenditure Management Commission (EMC)                       concerning        Public      Expenditure
     through a Resolution. The EMC will look into                  Management in Central Government
     various aspects of expenditure reforms to be                  and make suitable recommendations.
     undertaken by the government and other issues
     concerning Public Expenditure Management.              need of PuBlIc Investment
     The Commission has one full time, one part          We see the new government at the Centre
     time and one ex-officio members other than          initiating several reforms. Together with the
     Chairman of (Cabinet rank). Dr. Bimal Jalan is      experts, the Government of India also believe that
     its first Chairman. The terms of reference of the   this has revived the investor sentiment. But a real
     Commission are as given below:                      investment flow is yet to pick-up, especially from
           (i) Review the major areas of Central         the private sector. The cause for such a situation
               Government expenditure, and to suggest    has been identified as the “balance sheet syndrome
               ways of creating fiscal space required to with Indian characteristics”. The Economic Survey
               meet developmental expenditure needs,     2014–15 has analysed this situation in greater
               without compromising the commitment       details.
               to fiscal discipline.                           In such a scenario, together with other
          (ii) Review the institutional arrangement,     measures, the most important action which has
               including budgeting process and FRBM      been suggested is “boosting the public investment”.
               rules, for enforcing aggregate fiscal     Merit of such an action has been emphasised by