Kerala Fiscal Responsibility Act, 2003
No: 28 Dated: Sep, 17 2003
THE KERALA FISCAL RESPONSIBILITY ACT, 2003
ACT 29 OF 2003
An Act to provide for the responsibility of the Government to ensure prudence in fiscal management and fiscal stability by progressive elimination of revenue deficit and sustainable debt management consistent with fiscal stability, greater transparency in fiscal operations of the Government and conduct of fiscal policy in a medium term fiscal frame work and for matters connected therewith or incidental thereto.
Preamble –WHEREAS it is expedient to provide for the responsibility of the Government to ensure prudence in fiscal management and fiscal stability by progressive elimination of revenue deficit and sustainable debt management consistent with fiscal stability, greater transparency in fiscal operations of the Government and conduct of fiscal policy in a medium term fiscal frame work and for matters connected therewith or incidental thereto.
BE it enacted in the Fifty-fourth Year of the Republic of India as follows:-
1. Short title and commencement. – (1) This Act may be called the Kerala Fiscal Responsibility Act, 2003.
(2) It shall come into force, on such date as the Government may, by notification in the Gazette, appoint.
2. Definitions-In this Act, unless the context otherwise requires,-
(a) ‘‘annual budget’’ means the annual financial statement laid before the Legislative Assembly under article 202 of the Constitution of India;
(b) ‘‘committee’’ means public expenditure review committee constituted under sub section (1) of section 6.
(c) ‘‘current year’’ means the year preceding the year for which the budget and medium term fiscal policy are being presented.
(d) ‘‘fiscal deficit’’ means the excess of total expenditure of the Government over the total receipts and represents the borrowing requirements, and net of repayment of debt of the Government during the year, calculated as prescribed by the Comptroller and Auditor General of India.
(e) ‘‘fiscal indicators’’ means measures such as numerical ceilings and proportions to gross state domestic products as may be prescribed for evaluation of the fiscal position of the State Government;
(f) ‘‘Government’’ means Government of Kerala;
(g) ‘‘medium term fiscal framework’’ means the frame work drawn up by the Government for a five year period from the financial year on which this Act shall come into force with the objective of progressively eliminating the Revenue Deficit;
(h) ‘‘prescribed’’ means prescribed by rules under this Act;
(i) ‘‘previous year’’ means the year preceding the current year;
(j) ‘‘revenue deficit’’ means the difference between revenue expenditure and revenue receipts and implies increase in the liabilities of the State without corresponding increase in the assets of the State calculated as prescribed by the Comptroller and Auditor General of India;
(k) ‘‘State’’ means the State of Kerala;
(l) ‘‘total liabilities’’ means liabilities upon the Consolidated Fund and public account of the State;
(m)‘‘triggers’’ means the intra year bench marks on deficit.