Measures to enforce compliance

§6

Summary

6.(1) The Annual budget, and policies announced at the time of the budget, shall be consistent with the objectives and targets specified in the Medium Term Fiscal Restructuring Policy for the coming and future years. (2) The Minister In charge of the Department of Finance, shall review, every half year, the trend in receipts and expenditure in relation to the budget, remedial measures to be taken to achieve the budget targets and place before both the Houses of Legislature the outcome of such reviews. The review report shall be in such from as may be prescribed. (3) The review report shall explain - (a) any deviation or likely deviation in meeting the obligations cast on the State Government under this Act; (b) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes, and how much of the deviation can be attributed to general economic environment and to policy changes by the State Government; and (c) the remedial measures the State Government proposes to take. (4) Wherever there is a prospect of either shortfall in revenue or excess of expenditure over pre-specified levels for a given year on account of any new policy decision of the State Government that affects either the State Government or its public sector undertakings, State Government, prior to taking such policy decision, shall take measures to fully offset the fiscal impact for the current and future years by curtailing the sums authorized to be paid and applied from and out of the Consolidated fund of the State under any Act to provide for the appropriation of such sums, or by taking interim measures for revenue augmentation, or by taking up a combination of both. Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of the State under clause (3) of Article 202 of the Constitution: Provided further that, while adhering to the fiscal years, the State Government will give priority to protecting certain expenditure defined in the Medium Term Fiscal Restructuring Policy as " High Priority Development Expenditure " (including, inter alia.) from curtailment or may impose a recede or partial curtailment. (5) Whenever one or more supplementary estimates are presented to the House of Legislature, the State Government shall also present an accompanying statement indicating the corresponding curtailment of expenditure and / or augmentation of revenue to fully offset the fiscal impact of the supplementary estimates in relation to the budget targets of the current year and the Medium Term Fiscal Restructuring Policy objectives and targets for the future year. [(6) The Govrernment shall appoint an independent agency to review the status of financial position of the Government with special reference to the compliance of the provision of this Act. The periodicity of such review shall be such as may be prescribed.]1

6.(1) The Annual budget, and policies announced at the time of the budget, shall be consistent with the objectives and targets specified in the Medium Term Fiscal Restructuring Policy for the coming and future years. (2) The Minister In charge of the Department of Finance, shall review, every half year, the trend in receipts and expenditure in relation to the budget, remedial measures to be taken to achieve the budget targets and place before both the Houses of Legislature the outcome of such reviews. The review report shall be in such from as may be prescribed. (3) The review report shall explain - (a) any deviation or likely deviation in meeting the obligations cast on the State Government under this Act; (b) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes, and how much of the deviation can be attributed to general economic environment and to policy changes by the State Government; and (c) the remedial measures the State Government proposes to take. (4) Wherever there is a prospect of either shortfall in revenue or excess of expenditure over pre-specified levels for a given year on account of any new policy decision of the State Government that affects either the State Government or its public sector undertakings, State Government, prior to taking such policy decision, shall take measures to fully offset the fiscal impact for the current and future years by curtailing the sums authorized to be paid and applied from and out of the Consolidated fund of the State under any Act to provide for the appropriation of such sums, or by taking interim measures for revenue augmentation, or by taking up a combination of both. Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of the State under clause (3) of Article 202 of the Constitution: Provided further that, while adhering to the fiscal years, the State Government will give priority to protecting certain expenditure defined in the Medium Term Fiscal Restructuring Policy as " High Priority Development Expenditure " (including, inter alia.) from curtailment or may impose a recede or partial curtailment. (5) Whenever one or more supplementary estimates are presented to the House of Legislature, the State Government shall also present an accompanying statement indicating the corresponding curtailment of expenditure and / or augmentation of revenue to fully offset the fiscal impact of the supplementary estimates in relation to the budget targets of the current year and the Medium Term Fiscal Restructuring Policy objectives and targets for the future year. [(6) The Govrernment shall appoint an independent agency to review the status of financial position of the Government with special reference to the compliance of the provision of this Act. The periodicity of such review shall be such as may be prescribed.]1

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