Medium Term Fiscal Restructuring Policy to be laid before the Legislature

§3

Summary

3. (1) The State Government shall in each financial year lay before both Houses of the Legislature a Medium Term Fiscal Restructuring Policy alongwith the annual budget. (2) The Medium Term Fiscal Restructuring Policy shall set forth a five-year rolling targets for the prescribed fiscal indicators with specification of under lying assumptions. (3) In particular and without prejudice to the provisions contained in sub-section (2), the Medium Term Fiscal Restructuring Policy shall include an assessment of sustainability relating to- (i) the balance between revenue receipts and revenue expenditure; (ii) the use of capital receipts including borrowings for generating productive assets. (4) The Medium Term Fiscal Restructuring Policy shall, inter-alia, contain - (a) the medium term fiscal objectives of the State Government ; (b) an evaluation of performance on the basis of the prescribed fiscal indicators vis-a-vis the targets set out in the budget, and the likely performance in the current year as per revised estimates ; (c) a statement on recent economic trends and future prospects for growth and development affecting fiscal position of the State Government ; (d) the strategic priorities of the State Government in the fiscal areas for the ensuring financial year ; (e) the policies of the State Government for the ensuing financial year relating to taxation, expenditure, borrowings and other liabilities, lending and investments, pricing of administered goods and services, guarantees, and activities of Public Sector Undertakings which have potential budgetary implications, and the key fiscal measures and targets pertaining to each of these : (f) an evaluation as to how current policies of the State Government are in conformity with the fiscal management principles set out in Section 4 and the fiscal objectives set out in the Medium Term Fiscal Restructuring Policy. (5) The Medium Term Fiscal Restructuring Policy shall be in such form as may be prescribed. [(6) The State Government shall endeavour to make the Medium Term Fiscal Restructring Policy more comprehensive giving details of all significant items of receipt and expenditure.]1

3. (1) The State Government shall in each financial year lay before both Houses of the Legislature a Medium Term Fiscal Restructuring Policy alongwith the annual budget. (2) The Medium Term Fiscal Restructuring Policy shall set forth a five-year rolling targets for the prescribed fiscal indicators with specification of under lying assumptions. (3) In particular and without prejudice to the provisions contained in sub-section (2), the Medium Term Fiscal Restructuring Policy shall include an assessment of sustainability relating to- (i) the balance between revenue receipts and revenue expenditure; (ii) the use of capital receipts including borrowings for generating productive assets. (4) The Medium Term Fiscal Restructuring Policy shall, inter-alia, contain - (a) the medium term fiscal objectives of the State Government ; (b) an evaluation of performance on the basis of the prescribed fiscal indicators vis-a-vis the targets set out in the budget, and the likely performance in the current year as per revised estimates ; (c) a statement on recent economic trends and future prospects for growth and development affecting fiscal position of the State Government ; (d) the strategic priorities of the State Government in the fiscal areas for the ensuring financial year ; (e) the policies of the State Government for the ensuing financial year relating to taxation, expenditure, borrowings and other liabilities, lending and investments, pricing of administered goods and services, guarantees, and activities of Public Sector Undertakings which have potential budgetary implications, and the key fiscal measures and targets pertaining to each of these : (f) an evaluation as to how current policies of the State Government are in conformity with the fiscal management principles set out in Section 4 and the fiscal objectives set out in the Medium Term Fiscal Restructuring Policy. (5) The Medium Term Fiscal Restructuring Policy shall be in such form as may be prescribed. [(6) The State Government shall endeavour to make the Medium Term Fiscal Restructring Policy more comprehensive giving details of all significant items of receipt and expenditure.]1

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