Fiscal Responsibility and Budget Management Act, 2003
No: 39 Dated: Aug, 26 2003
Fiscal Responsibility and Budget Management Act, 2003
(Act No. 39 of 2003)
An Act to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:-
1. Short title, extent and commencement.—(1) This Act may be called the Fiscal Responsibility and Budget Management Act, 2003.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “fiscal deficit” means the excess of total disbursements, from the Consolidated Fund of India, excluding repayment of debt, over total receipts into the Fund (excluding the debt receipts), during a financial year;
(aa) “Central Government debt” at any date means—
(i) the total outstanding liabilities of the Central Government on the security of the Consolidated Fund of India, including external debt valued at current exchange rates;
(ii) the total outstanding liabilities in the public account of India; and
(iii) such financial liabilities of any body corporate or other entity owned or controlled by the Central Government, which the Government is to repay or service from the annual financial statement, reduced by the cash balance available at the end of that date;
(b) “fiscal indicators” means the measures such as numerical ceilings and proportions to gross domestic product, as may be prescribed, for evaluation of the fiscal position of the Central Government;
(bb) “general Government debt” means the sum total of the debt of the Central Government and the State Governments, excluding inter-Governmental liabilities;
(bc) “gross domestic product” means the sum of the gross value added by all resident production units plus that part of taxes, less subsidies, on products, which is not included in the valuation of output, during a financial year, reckoned at current market prices, as published by the Central Statistics Office from time to time;
(c) “prescribed” means prescribed by rules made under this Act
(ca)"real gross domestic product" means gross domestic product, reckoned at constant prices, as published by the Central Statistics Office from time to time;
(cb) "real output growth" means growth in real gross domestic product;
(d) “Reserve Bank” means the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (2 of 1934)