He said a counter cyclical fiscal policy is required for insurance against external shocks and localized domestic factors. Aiming towards fiscal consolidation, the Government would introduce an amendment to the Fiscal Responsibility and Budget Management (FRBM) Act 2003 laying down the fiscal road map for the next five years.

The Finance Minister also proposed to introduce Public Debt Management Agency of India Bill in the next financial year. The States are required to amend or enact their FRBM Acts to confirm to a combined States’ debt target of 24.3 per cent of GDP to be reached latest by 2014-15.