Rajasthan Fiscal Responsibility and Budget Management Act, 2005
No: 7 Dated: May, 03 2005
THE RAJASTHAN FISCAL RESPONSIBILITIES AND BUDGET MANAGEMENT ACT, 2005
(Act No. 7 of 2005)
An Act to ensure prudence in fiscal management and fiscal stability by progressive reduction of revenue deficit, prudent debt management consistent with fiscal sustainability, greater transparency in fiscal operations of the Government and conduct of fiscal policy in a medium term fiscal framework and for matters connected therewith or incidental thereto.
Be it enacted by the Rajasthan State Legislature 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 Rajasthan Fiscal Responsibility and Budget Management Act, 2005.
(2) It shall extend to the whole of the State of Rajasthan.
(3) It shall come into force on such date1 as the State Government may, by notification in the Official Gazette, appoint in this behalf.
2. Definitions:- In this Act, unless the context otherwise requires,-
(a) “annual budget” means the Annual Financial Statement laid before the House of the State Legislature under Article 202 of the Constitution of India;
(b) “Consolidated Fund” means the Fund as defined in Article 266 (1) of the Constitution of India comprising all revenues received by the Government of Rajasthan, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by the Government in repayment of loans;
(c) “current year” means the year preceding the year for which the annual budget, Medium Term Fiscal Policy Statement and the Fiscal Policy Strategy Statement are being presented;
(d) “ensuing year” means the financial year for which the budget is being presented;
(e) “Financial year” means the year beginning on the 1st April and ending on 31st March next following;
(f) “fiscal deficit” means the excess of total disbursements from the consolidated Fund of the State (excluding repayment of debt) over the sum of revenue receipts, recovery of loans and non-debt capital receipts into the Fund during a financial year;
(g) “fiscal indicators” means such indicators as may be prescribed for evaluation of the fiscal position of the State Government;
(h) “fiscal targets” means the numerical ceiling prescribed in either absolutes (in Rupees crore) or as proportions to the Gross State Domestic Product or other magnitudes for the fiscal indicators;
(i) “guarantees” means the liabilities (except outstanding guarantees against State Insurance and Provident Fund, which are included in total explicit liabilities), undertaken by State Public Sector Undertakings or Special Purpose Vehicles, where servicing and repayment liabilities fall on the State Government in the event of default by the primary borrower;
(j) “prescribed” means prescribed by the rules made under this Act;
(k) “Public Sector Undertaking” means the enterprises having equity contribution of more than 50% from the Government of Rajasthan, whether departmental or non-departmental
(kk) “Rajasthan Development and Poverty Alleviation Fund” means a Fund created under section 6A;”
(l) “Reserve Bank” means the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 (Act No. 2 of 1934);
(m) “revenue deficit” means the amount of excess of revenue expenditure over revenue receipts in a financial year;
(n) “Special Purpose Vehicle” means the instruments set up for financing of investments through borrowings not routed through the annual budget of the Government of Rajasthan;
(o) “State” means the State of Rajasthan;
(p) “total liability” means the explicit liabilities under Consolidated Fund of the State and the Public Account of the State including General Provident Fund.