Amendment status not verified — confirm the current text below against the official source.
Fiscal Management Principles. - (1) The State Government will, be guided by following fiscal management principles:- (a) manage expenditures consistent with the revenue generated; (b) maintain Government debt at prudent level; (c) manage guarantees and other contingent liabilities prudently with particular reference to the quality and level of such liabilities; (d) ensure that the policy decisions of the Government have due regard to the financial implications on the future generations; (e) ensure that the borrowings are used for productive assets and accumulation of capital assets and are not applied to finance revenue expenditures; (f) ensure a reasonable degree of stability and predictability in the level of tax burden; (g) maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions; (h) pursue tax policies with due regard to economic efficiency and compliance costs; (i) pursue non-tax policies with due regard to cost recovery and equity; (j) pursue expenditure policies that would provide impetus to economic growth, poverty reduction and improvement in human welfare; (k) build up a revenue surplus for use in capital formation and productive expenditure; (l) ensure maintenance of the physical assets of the Government; (m) maintain transparency by disclosing sufficient information to allow public to scrutinize the state of the public finances; (n) ensure best possible uses of the Government resources and public assets; (o) minimize the fiscal risk associated with management of public sector undertakings and the utilities providing public goods and services; (p) ensure discharge of cunent liabilities in a timely manner; (q) formulate a realistic budget with due regard to the general economic outlook and revenue prospects and minimize deviations during the course of the year. (2) The State Government shall take appropriate measures to eliminate revenue deficit and contain fiscal deficit at a 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,- THE ASSAM GAZETTE, EXTRAORDINARY, MAY 17, 2005 1509 (i) eliminate revenue deficit within five financial years beginning on the 1st day of April 2005 and ending on the 31s1 day of March 2010; (ii) reduce the revenue deficit as a percentage of Gross State Domestic Product (GSDP) in each of the Financial year beginning 1st day of April 2005, in a manner consistent with the target set out in clause ( i ) above; Explanation: For the purpose of calculation of the revenue deficit vis-a-vis the target set for any year, due adjustments will be made to cover the shortfall in the current transfers from the Centre, including devolution of the State’s share of Central taxes, with reference to the budgetary provision of the year. (iii) by the year 2010 the expenditure on account of salary and wages of the employees of the State Government will be contained within 60% of the total tax and non-tax revenue of the State Government, including devolutions from the Government of India but excluding the grants under the Annual Plan from the Planning Commission and other developmental grants; (iv) restrict the revenue expenditure under Annual state plan to one third of the Plan outlay in a financial year with a view to making more fund available for capital and developmental expenditures; Explanation: For the purpose of computation of revenue expenditure, any grant given for capital expenditure will be excluded but any loan given for revenue expenditure will be included. (v) reduce fiscal deficit to 3% of the estimated Gross State Domestic Product within a period of five financial years beginning on the 1st day of April 2005 and ending on 31st day of March 2010; (vi) reduce fiscal deficit as percentage of the estimated Gross State Domestic Product in each of the financial year beginning on 1st day of April 2005, in a manner consistent with the goal set out in clause (v) above; (vii) restrict the total debt stock of the State Government including the Government Guarantee to 45% of the GSDP of the previous year at current prices within a period of five years beginning on the 1st day of April, 2005; (viii) State Government Guarantee for the loans contracted by Public Sector Undertakings, Boards, Companies, Corporations, Cooperative societies or Autonomous organizations under the State Government, shall be restricted at any point of time to fifty percent of State’s own tax and non-tax revenue of the previous year or five percent of the GSDP of previous year at current prices, whichever is lower: Provided that revenue deficit and fiscal deficit may exceed the limits specified under this sub-section on the ground or grounds of unforeseen demands on the finances of the State Government arising out of internal disturbance or natural calamity or such other exceptional grounds as the State Government may specify: 1510 THE ASSAM GAZETTE, EXTRAORDINARY, MAY 17, 200k Provided further that the ground or grounds specified in the first proviso shall be placed before the State Legislature, as soon as may be, after such deficit amount exceeded the aforesaid limit.