Karnataka Fiscal Responsibility Act, 2002

No: 16 of 2002 Dated: Apr, 01 2003

Karnataka Fiscal Responsibility Act, 2002

An Act to provide for the responsibility of the State Government to ensure fiscal stability and sustainability, and to enhance the scope for improving social and physical infrastructure and human development by achieving sufficient revenue surplus, reducing fiscal deficit and removing impediments to the effective conduct of fiscal policy and prudent debt management through limits on State Government borrowings, debt and deficits, greater transparency in fiscal operations of the State Government and use of a medium‐term fiscal framework and for matters connected therewith or incidental thereto.

Whereas it is expedient to provide for the responsibility of the State Government to ensure fiscal stability and sustainability, and to enhance the scope for improving social and physical infrastructure and human development by achieving sufficient revenue surplus, reducing fiscal deficit and removing impediments to the effective conduct of fiscal policy and prudent debt management through limits on State Government borrowings, debt and deficits, greater transparency in fiscal operations of the State Government and use of a medium‐term fiscal framework and for matters connected therewith or incidental thereto.

Be it enacted by the Karnataka Legislature in the Fifty‐third Year of the Republic of India as follows:‐ 

1. Short title, extent and commencement.‐ (1) This Act may be called the Karnataka Fiscal Responsibility Act, 2002.

(2) It extends to the whole of Karnataka.

(3) It shall come into force on such as the State Government may, by notification, appoint.

1. The 1st April 2003 to be the day on which the Act shall come into force  ‐  vide   Notification No. FD 5PMU 2003 dated 11.2.2003.