Meghalaya Fiscal And Responsibility Rules, 2006
No: FWM.10/2004/150 Dated: Nov, 06 2006
Meghalaya Fiscal Responsibility and Budget Management Act, 2006
THE MEGHALAYA FISCAL AND RESPONSIBILITY RULES, 2006
NOTIFICATIONS
No.FWM.10/2004/150.- In exercise of the powers conferred by Section 10 of the Meghalaya Fiscal Responsibility and Budget Management Act, 2006, (Meghalaya Act No. 4 of 2006), the Governor of Meghalaya hereby makes the following rules namely.
1. Short title and Commencement: - (1) These rules may be called the Meghalaya Fiscal and Responsibility Rules, 2006.
(2) They shall come into force on the date of notification in the Official Gazette.
2. Definition:- (1) In these rules, unless the context otherwise requires:
(a) "Act"means the Meghalaya Fiscal and Responsibility Act, 2006 (Meghalaya Act No. 4 of 2006);
(b) "form"means a form appended to these rules;
(c) "section"means the section of the Act;)
(d) "State Government"means the State Government of Meghalaya; and
(e) Words and expressions used and not defined but defined in the Act such words or expression shall have the same meanings respectively assigned to them in the Act.
3. Macro economic Framework Statement.- The Macro economic Framework Statement as required under Clause (a) of Section-7, shall be in the form, F-1.
4. Medium Term Fiscal Policy Statement :- (1) The Medium Term Fiscal Policy Statement as required under Clause (b) of sub-section (1) of section-7 shall be in the form, F-2 with three years rolling targets in respect of the following fiscal indicators.
(a) revenue deficit as a percentage of Total Revenue Receipts.
(b) fiscal deficit as percentage of Gross State Domestic Product; and
(c) outstanding total liabilities as per as a percentage of Gross Domestic Product.
(2) The Medium Term Fiscal policy Statement shall also explain the assumptions underlying the above mentioned targets for fiscal indicators and an assessment of sustainability relating to the items indicated in sub-section (3) under Section-7.
5. Fiscal Policy Strategy Statement.- The Fiscal Policy Strategy Statement as required under sub-section 4 of Section- 7 shall be in the Form F-3.
6. Disclosures.- (1) The State Government shall, at the time of presenting the budget, make disclosures required under Section 8 of the Act along with the following Statements; namely.
(a) a statement of select indicators of fiscal situation Form D-I;
(b) a statement on the components of State Government liabilities and interest cost of borrowings/mobilization of deposits in form D-2.
(c) A statement of Consolidated Sinking Fund in form D-3;
(2) The State Government shall endeavour to provide the following statement not later than two years after the coming into force of these rules, namely:-
(a) a statement of guarantee given by the Government in form D-3;
(b) a statement of outstanding risk- weighted guarantees in Form D-5;
(c) a statement on the Guarantee Redemption Fund in Form D-6;
(d) a statement of Assets in Form D-7;
(e) a statement on numbers of employees in State government, public sector and aided institutions and related outlays for salaries as in Form D-8.
Measures to Enforce Compliance.- In case the outcome of the quarterly reviews shows that trends in receipts and expenditure, at the end of the second quarter of a financial year in such that there is short fall in revenue or excess of expenditure over the intra year target specified in the Fiscal Policy Strategy Statement then as required at sub-section (2) of Section 9 of the Act the State Government shall take appropriate measures to increase revenue and reduce expenditure.