Amendment status not verified — confirm the current text below against the official source.
iv) requiring the State Government to take suitable measures to ensure greater transparency in Fiscal Operation and to minimise, as far as practicable, secrecy in the preparation of the annual budget. v) to require that the annual budget and the policies announced at the time of Budget shall be consistent with the objectives and targets specified in the Medium Term Fiscal Plan for the coming and future years. vi) half yearly review of the trends in receipts and expenditure in relation to the budget by the Finance Minister and placing the out come of such review before both the Houses of the State Legislature. vii) requiring the Finance Minister to make statement in both the Houses of the State Legislature explaining any deviation in meeting the obligations cast on the State Government under the Legislation. viii) relaxation from deficit reduction targets to deal with unforeseen demands on account of national security or unprecedented natural calamities. Hence the Bill. (L.A. Bill No. 28 of 2002) I Amending Act 6 of 2009.- It is considered necessary to amend section 4 of the Karnataka Fiscal Responsibility Act, 2002 to raise the Fiscal deficit to 3.5 percent of estimated Gross State Domestic Product for the year 2008-09 as a one time relaxation and to meet capital expenditure as a part of economic stimulus package. Hence the Bill. [LA Bill No.22 of 2009, File No.DPAL 16 Shasana 2009] (The subject matter of the Bill falls under clause (2) of Article 283 of the Constitution of India.) II Amending Act 14 of 2009.- It is considered necessary to amend section4 of the Karnataka Fiscal Responsibility Act, 2002 to raise the fiscal deficit to 4 percent of the estimated Gross State Domestic Product for the year 2009-10 as a one time relaxation. Hence the Bill. [L.A.Bill No.35 of 2009, File No.DPAL 35 Shasana 2009] [The subject matter of the Bill falls under clause (2) of Article 283 of the Constitution of India.] III Amending Act 13 of 2011.- It is considered necessary to amend the Karnataka Fiscal Responsibility Act, 2002 to implement the measures prescribed by the Government of India based on the recommendation of XIII Finance Commission as a condition precedent to release specific grants and debt relief measures to the State. Hence, the Bill. [L.A. Bill No. 13 of 2011, File No.Samvyashae 11 Shasana 2011] [The subject matter of the Bill falls under Clause (2) of Article 283 of the Constitution of India.] IV Amending Act 17 of 2014.- It is considered necessary to amend the Karnataka Fiscal Responsibility Act, 2002 to provide for,- (a) redefinition of "Fiscal Deficit" by omitting Item (ii) and the explanation thereunder in clause (c) of section 2 of the Act to bring it on the lines of the Fiscal Responsibility and Budget Management Act, 2003 (Central Act 39 of 2003) and also with the Finance Commission's reports; and (b) inclusion of the Off Budget Borrowings that are to be repaid from the State Government's budget in the definition of the term "Total Liabilities" in clause (g) of the section 2 of the Act to provide true picture of sustainability of debt. Hence, the Bill. [L.A. Bill No.39 of 2014, File No. Samvyashae 8 Shasana 2014] [Entry Clause (2) of Article 283 of the Constitution of India.] ---- KARNATAKA ACT No. 16 OF 2002 (First published in the Karnataka Gazette Extra-ordinary on the thirtieth day of August, 2002) THE KARNATAKA FISCAL RESPONSIBILITY ACT, 2002 (Received the assent of the Governor on the twenty seventh day of August, 2002) (Amended by Karnataka Act 6 of 2009, 14 of 2009, 13 of 2011 and 17 of 2014. ) An Act to provide for the responsibility of the State Government to ensure fiscal stability and sustainability, and to 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, 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. Whereas it is expedient to provide for the responsibility of the State Government to ensure fiscal stability and sustainability, and to 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, 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 by the Karnataka Legislature in the Fifty-third Year of the Republic of India as follows :-