Vijay Kelkar Panel

The Vijay Kelkar Committee has framed a Road Map for the Centre’s Fiscal Deficit , one that is easier than that projected by the 13th Finance Commission, also headed by Vijay Kelkar.

The Vijay Kelkar Committee recommended that the government prune its subsidies ( Reduction of subsidy on Petro Product , Fertilizer etc . in phase out manner ) , check plan expenditure, raise at least Rs 30,000 crore from Disinvestment and Shore up tax-to-GDP ratio to restrict Fiscal Deficit at 5.2 per cent of the Gross Domestic Product (GDP) for the Current Financial Year.

Sale of Surplus Land with Public Sector Undertaking ( Port Trusts , Railways to fund Infrastructure ) fast-tracking of the Center’s Disinvestment Programme , Expansion of the Service Tax Net to raise revenue as also on an Overhaul of the Direct Taxes Code .

The Kelkar Committee stated the government Should Reform Services and Excise Duties for their Smooth Integration into the GST regime and suggested a cut in the standard excise duty rate from 12 per cent to eight per cent to align it with the GST rate and send a signal the government was committed to the new indirect tax regime.