Assam Fiscal Responsibility and Budget Management Act, 2005
No: 27 Dated: May, 17 2005
Amendment:- Assam Fiscal Responsibility and Budget Management (Amendment) Act, 2005
Assam Fiscal Responsibility and Budget Management (Amendment) Act, 2007
THE ASSAM FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT. 2005
ASSAM ACT NO. XXVII OF 2005
An Act To provide for the responsibility of the State Government to ensure fiscal stability, sustainability, improve efficiency and transparency in management of the public finances of the State, enhance the availability of resources by achieving sufficient revenue surplus, reduce fiscal deficit and remove the impediments to effective conduct of fiscal policy and prudent debt management for improving the social and physical infrastructure and human development in the State.
Be it enacted by Assam legislative Assembly in the Fifty sixth Year of the Republic of India as follows:-
1. Short title, extent and commencement. - (1) This Act may be called The Assam Fiscal Responsibility and Budget Management Act, 2005.
(2) It extends to the whole of Assam.
(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
2. Definitions. - In this Act, unless the context otherwise requires,-
(a) "Administrative Approval" means authority to create liability and / or incur expenditure;
(b) "Annual budget" means the annual financial statement laid before the State Legislature under article 202 of the Constitution;
(c) "Appointing Authorities" means officers of the State Government exercising the delegated authority of appointing persons to the posts under the State Government;
(d) "Current Year" means the year preceding the year for which the budget and the Five Year Fiscal Plan (FYFP) are being presented;
(e) "Financial Year" means the year beginning on the 1st April and ending on the 31st day of March of the following calendar year;
(f) "Fiscal Deficit" means the excess of aggregate disbursements (net of debt repayments) from the Consolidated Fund of the State over revenue receipts, recovery of loans and non-debt capita l receipts during a financial year
Explanation: For the purpose of calculation of Fiscal Deficit, borrowings by the Public Sector Undertakings and Special Purpose Vehicles and other equivalent instruments where liability for repayment is on the State Government, are to be treated as the borrowings of the State Government.
(g) "Plan Outlay" means the annual aggregate plan for the State for a financial year as approved by the Planning Commission of the Government of India;
(h) "Fiscal Indicators" means such figures, proportions, percentages as may be prescribed, for evaluation of the fiscal position of the State Government;
(i) "Prescribed" means as prescribed by the rules made under this Act;
(j) "Previous Year" means the year preceding the current year;
(k) "Revenue deficit" means the excess of the revenue expenditure over the revenue receipts in a financial year;
Explanation: For the purpose of this clause, interest payment by the State Government towards the borrowings by the Public Sector Undertakings, Special Purpose Vehicles or any other equivalent instruments where the liability for repayment is on the Government, shall be treated as revenue expenditure.
(l) "Revenue Surplus" means the excess of revenue receipts over the revenue expenditure;
(m) "Sanctioned Post" means the posts which were created by a sanction of the State Government and has not been subsequently abolished or kept in abeyance by am order of the State Government;
(n) "State Government" means the Government of Assam;
(o) "Finance Department" means the Finance Department of the Government of Assam;
(p) "Total Liabilities" means liabilities upon the Consolidated Fund of the State and Public Account of the State.
3. The Five Year Fiscal Plan to be laid before the Legislature.. - (1) The State Government shall in each financial year, lay before the State Legislature a Five Year Fiscal Plan along with the Annual Budget.
(2) The Five Year Fiscal Plan shall set forth a five year rolling target for the prescribed fiscal indicators with specifications of underlying assumptions.
(3) In particular and without prejudice to the provisions contained in sub-section (2) the Five Year Fiscal Plan shall include an assessment of sustainability relating to,
(i) balance of revenue receipt and revenue expenditure,
(ii) the use of capital receipts including borrowings for creating productive assets.
(4) The Five year Fiscal Plan shall, inter alia, contain,
(a) the Medium Term Fiscal Objectives of the State Government;
(b) an evaluation of the fiscal indicators in the previous year vis-à-vis the target set out earlier 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 the fiscal position of the State Government;
(d) the strategic priorities of the State Government in the fiscal area for the ensuing financial year;
(e) policies of the State Government for the ensuing Financial year relating to tax and non-tax revenue, expenditure, subsidies (including grants to Public Sector Undertakings, grants-in-aid to Non- Government Organizations), borrowing and other liabilities, lending and investments, Government guarantees to Public Sector Undertakings with key fiscal measures and targets relating to each of these
(f) an evaluation as to how the 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 Five Year Fiscal Plan.
(5) The Five Year Fiscal Plan shall be in such form as may be prescribed.