The Government has constituted the Expenditure Management Commission which will suggest ways to reduce food, fertiliser and oil subsidies to contain the fiscal deficit.

Prime Minister Narendra Modi has approved the constitution of the Commission. Former Governor of the Reserve Bank of India Dr Bimal Jalan will head the Commission and former Finance Secretary Sumit Bose and Eminent Economist Dr Subir Gokarn will be its members.

Finance Minister Arun Jaitley had announced its constitution in the budget for 2014-15. Additional Secretary in the Department of Expenditure will be an ex-officio member and a senior officer with experience in finance and expenditure will be the Member-Secretary.

The detailed Terms of Reference of the Expenditure Management Commission will be notified separately. The Commission is expected to submit its interim report before the Budget of 2015-16 and its final report before the Budget of 2016-17.