The institution of the rule-based fiscal policy, as envisaged in the Fiscal Responsibility and Budget Management Act, 2003 (FRBM) has been on revenue-led  4  BIS Review 39/2006  fiscal consolidation, better expenditure outcomes and rationalisation of tax regimes to remove distortions and improve competitiveness of domestic goods and services in a globalised economic environment.
In this regard I wish to confirm that the Reserve Bank generally views it inappropriate to resort to the escape clause, and would rather provide an explanation to any deviation from the target range once the final outcome of the CPIX average for that year had been published.