A group of leading economists met the Fifteenth Finance Commission on Thursday and opined that the permissible limits on borrowings under Fiscal Consolidation roadmap needed to be equally applicable to Centre and States in the context of overall macroeconomic framework.

The economists further opined that it would be realistic to use contemporary population data but weightage should be assigned to population and also rewards for population stabilization policy.

It could be appropriately determined by the commission. Commission needs to balance equity with efficiency, they viewed.

They said that issues of uncertainty pertaining to GST needed to be fully factored in.

The Chairman summing the discussion felt that continued engagement with Domain Experts over the coming months will help commission in firming up the approach before reaching tentative conclusions both on the vertical and horizontal devolution of revenue.

Besides an approach for local bodies and panchayats which were both realistic and would genuinely deliver the intended resources to the beneficiaries.

Later, Commission also held the first meeting with the Advisory Council to get inputs on various issues under the purview of the Commission.

These included political economy behind the Centrally Sponsored Schemes, future of CSS, methods required for long term financing of schemes, stabilization of GST.