Amendment status not verified — confirm the current text below against the official source.
(1) The State Government will be guided by the following fiscal management principles: (a) maintain Government debt at prudent 16vels; (b) manage guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities; (c) ensure that policy decisions of the Government have due regard-to their f financial I implications on future generations; ,: (d) ensure that borrowings are used for productive purposes and aw :mulation of capital assets, and are not applied to finance current expenditure; (e) ensure a reasonable degree of stability and predictability in the level of the tax burden '(f) maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions; (g) pursue tax policies with due regard to economic efficiency and compliance costs; (h) pursue non-tax revenue policies with due regard to cost recovery and equity; -3- (i) pursue expenditure policies that would provide impetus for economic growth, poverty reduction and improvement in human welfare; (j) build up a revenue surplus for use in capital formation and productive expenditure; (k) ensure that physical assets of the Government are properly maintained; (I) disclose sufficient information to allow the public to scrutinize the conduct of fiscal policy and the state of public finances; (m) ensure that Government uses resources in ways that give best value for money; and also ensure that public assets are put to best possible use; (n) minimize fiscal risks associated with running of public sector undertakings and utilities proving public goods and services; (o) manage expenditure consistent with the level of revenue generated; (p) formulate budget in a realistic and objective manner with due regard to the general economic outlook and revenue prospects, and minimize deviations during the course of the year;and (q) ensure discharge of current liabilities in a timely manner. (2) The State Government shall take appropriate measures to eliminate the revenue deficit and contain the fiscal deficit at sustainable level and build up adequate revenue surplus. (3) In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall '[(a) Maintain the level of revenue surplus in all the years beginning from the initial financial year on l" April 2015 and ending 31st March 2020. (b) Maintain revenue surplus as a percentage of Gross State Domestic Product (GSDP} in each of the financial year beginning on the 1st day of April 2015 and ending on 31st March 2020 in a manner consistent with the goal set out. (c) to reduce fiscal deficit to not more than 3%percent of the estimated Gross State Domestic Product (GSDP} for the years 2015-16 which is the award period of 14th Finance Commission. (d) Maintain debt GSDP ratio less than 25 or equal to 25% in the preceding year to avail the additional borrowing of 0.25 per cent of GSDP. (e)Maintain the interest payment to the level of less than or equal to 10 percent of the revenue receipts in the preceding year to avail the additional borrowing limit of 0.25 percent of GSDP in a given year for which the borrowing limits are to be fixed. (f) The flexibility in availing the additional limit under either of two options or both will be available to the state only if there is no deficit in the year in which borrowing limits are to be fixed and immediately preceding year. (g) If the state is not able to fully utilise its sanctioned borrowing limit of 3% of GSDP in any particular year of the award period of 14 Finance Commission(2015-16 to 2018-19} it will have the option of availing this unutilized borrowing amount only in the following year but within the award period of the 14th Finance Commission]. Provided that 1[revenue surplus may decrease] and fiscal deficit may exceed the limits specified under this sub-section due to ground or grounds of unforeseen demands on the finances of the Slate Government due to national security or natural calamity, subject to the condition that the excess beyond limits arising due to natural calamities does not exceed the actual fiscal cost that can be attributed to the calamities; Provided further that the ground or grounds specified in the first proviso shall be placed before the House of Legislature, as soon as may be, alter it becomes likely that such deficit amount may exceed the aforesaid limits, with an accompanying report stating the likely extent of excess, and reasons therefor. Measures for Fiscal Transparency.