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Against the backdrop of Public Finance Management (PFM) reforms, we analyse the issues related to budgetary processes and fiscal transparency issues in India, at the national and subnational levels of government in India. The fiscal codes are built on the premise that fiscal transparency is crucial for financial stability, and the information asymmetries are a significant cause of financial-fiscal failures. The study identified various data gaps in the budgetary preparation and dissemination processes, and the need for the revised fiscal rules, and a comprehensive accounting and reporting processes. These inferences have policy implications for the recently constituted 16th Finance Commission. We suggest that constituting a Fiscal Council can improve fiscal transparency, efficiency and consistency.

JEL: M4, E6, E62, H50, H61, H70, H71, H72, H76

Keywords: Budget Systems, Fiscal Transparency, public expenditure management, fiscal rules.