Speaking at the first Indian Cost Accounts Service Day celebration here, Jaitley stated what happened in Greece recently was a direct consequence of the fact that governments there decided 'not to live' within their means. "The public exchequer, government money is people's money after all and this money is something which is sacrosanct. Sacrosanct for the reason that governments have to learn the discipline of living within their means," he said.

In the inter-connected world, if governments do not live within their means, it can have a lot of adverse consequences, Jaitley added. "It can lead to outflow of capital...it can have an adverse impact on your currency rates...It can knock off fiscal discipline," he cited. The government has pegged the fiscal deficit at 3.9 percent of the GDP for FY 2015-16 and proposed to lower it to 3 percent by FY 2017-18.

The Finance Minister further said the only way to stick to fiscal discipline and follow the road of fiscal consolidation is either 'you earn more or spend less'. "And the ideal route is to do both. And that is what governments are now endeavouring to do," he added.

Jaitley asserted that governments need professional advice so as to ensure that they do not overspend. "And obviously, people with varied experience who run the government, the permanent establishment of the government is civil service. How above the professional the civil service is, its ability at analysing cost could always be limited. "And therefore, the creation of a catalyst service which analyses the cost and comes to a realistic assessment of cost is necessarily required," the Finance Minister said.

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