Uttarakhand fiscal responsibility and Budget Management Act, 2005
No: 22 Dated: Oct, 31 2005
Uttarakhand fiscal responsibility and Budget Management Act, 2005
(Uttarakhand Act No. 22 of 2005)
An Act to provide for the responsibility of the State Government to ensure fiscal stability and sustainability, and 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, Government guarantees, 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 in the Fifty-sixth year of the Republic of India as follow-
1. Short title and commencement. - (1) This Act may be called the Uttarakhand Fiscal Responsibility and Budget Management Act, 2005.
(2) It shall come into force on such date as the State Government may, by notification in this behalf, appoint.
2. Definitions. - In this Act, unless the context otherwise requires -
(a) "annual budget" means the annual financial statement laid before the house of State Assembly under Article 202 of the constitution;
(b) "current year" means the year preceding the year for which budget is being presented;
(c) "fiscal deficit" means the excess of -
(i) total disbursements from the consolidated Fund of the State (excluding repayment of debt) over total receipts into the Fund (excluding the debt receipts) during a financial year, or
(ii) total expenditure from the consolidated Fund of the State (including loans but excluding repayment of debt) over own tax and non-tax revenue receipts, devolution and other grants from Government of India to the State, and non-debt capital receipts during a financial year which represents the borrowing requirements, net of repayment of debt, of to State Government during the financial year;
(d) "Fiscal Indicators" means the measures such as numerical ceilings and proportions to gross State domestic product or any other ratios, as may be prescribed, for evaluation of the fiscal position of the State Government;
(e) "previous year" means the year preceding the current year;
(f) "revenue deficit" means the difference between revenue expenditure and revenue receipts;
(g) "total liabilities" means the liabilities under the consolidated Fund of the State and the public account of the State.
(h) "Interest Payment" means the amount payable other than refund of principal amount on the internal debt of the State Government from the Central Government and on State provident funds and other liabilities in the public account.
3. Medium Term Fiscal policy to be laid before the State Assembly. - (1) The State Government shall in each financial year lay before the State Assembly a Medium Term Fiscal policy along with the annual budget.
(2) The Medium Term Fiscal Policy shall set forth a three year rolling targets for the prescribed fiscal indicators with specification of under lying assumptions.
(3) In particular and without prejudice to the provisions contained in sub-section (2), the Medium Term Fiscal Policy shall include an assessment of sustainability relating to-
(i) the balance between revenue receipts and revenue expenditure;
(ii) the use of capital receipts including borrowings for generating productive assets.
(4) The Medium Term Fiscal Policy shall, inter-alia contain-
(a) the medium term fiscal objectives of the State Government;
(b) an evaluation of performance on the basis of the prescribed fiscal indicators vis-a-vis the targets set out in the budget and the likely performance in the current year as per revised estimates;
(c) a statement on recent economic trends and future prospects for growth and development affecting fiscal position of the State Government;
(d) the strategic priorities of the State Government in the fiscal areas for the ensuing financial year;
(e) the policies of the State Government for the ensuing financial year relating to taxation, expenditure, borrowings and other liabilities, lending and investments, pricing of administered goods and services, guarantees and activities of Public Sector Undertakings which have potential budgetary implications; and the key fiscal measures and targets pertaining to each of these;
(f) an evaluation as to how current policies of the State Government are in conformity with the fiscal management principles set out in section 4 and the fiscal objectives set out in the Medium Term Fiscal Policy.
(5) The Medium Term Fiscal Policy shall be in such form as may be prescribed.