Amendment status not verified — confirm the current text below against the official source.
(1) The State Government may prescribe such targets as may be deemed necessary for giving effect to the fiscal management objectives. (2) In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall,- (a) reduce revenue deficit by an amount equivalent to atleast 0.32 percentage point of GSDP in each financial year, beginning from the 1st day of April 2005, so as to eliminate it by 31st March 2009 and generate revenue surplus thereafter; 1 [(b) reduce fiscal deficit by an amount equivalent to atleast 0.25 percentage point of Gross State Domestic Product in each financial year beginning from the 1st day of April, 2005, so as to bring it down to not more than 3 percent; subject to the fiscal deficit limits fixed by the Government of India from time to time:] 2 [Provided that for each of the financial years 2016-17 to 2019-20, flexibility for additional fiscal deficit shall be available to the State up to a maximum of 0.5 of GSDP over and above the normal fiscal deficit limit of 3 of GSDP in any given year subject to fulfilling the following conditions laid down by the Fourteenth Finance Commission: 3 [Provided further that, for the Financial Year 2019-20, additional fiscal deficit of Rs.1435 crore shall be permissible over and above 3.25 of the GSDP as a one-time special dispensation and for the Financial Year 2020-21 additional fiscal deficit of 2 over and above 3 of the GSDP (upto 5 of GSDP) shall be permissible]:- (i) The State shall be eligible for flexibility for additional fiscal deficit of 0.25 of GSDP over and above the limit of 3.0 of GSDP for any given year, if the debt-GSDP ratio is less than or equal to 25 per cent in the immediately preceding year. (ii) The State shall be eligible for an additional fiscal deficit of 0.25 percent of GSDP in any given year if interest payments are less than or equal to 10 per cent of the revenue receipts in the immediately preceding year. (iii) The State shall have the option of availing of the options under (i) and (ii) above either separately, if any of the above criteria is fulfilled, or simultaneously if the both the above criteria are fulfilled. (iv) The additional fiscal deficit limit up to 0.5 of GSDP shall be conditional on the State having no revenue deficit in the year in which additional fiscal deficit is to be incurred and also in the immediately preceding year;] 4 [(bb) The State shall have the facility of additional borrowings to the extent of unutililsed fiscal deficit limit of 3 of GSDP, if any, in any particular year during the period 2016-2017 to 2018-19 in the following year but within the period 2016-17 to 2019-20;] (c) ensure within a period of five years, beginning from the initial financial year on the 1st day of April 2005, and ending on the 31st day of March 2010, that the outstanding total liabilities do not exceed 35 per cent of the estimated GSDP for that year; 5 [(cc) ensure within the subsequent period of five years, beginning from the financial year on the 1st day of April, 2010, and ending on the 31st day of March, 2015, that the total outstanding liabilities do not exceed 27.6 percent of the GSDP, as prescribed by the Government of India in pursuance of the recommendations of Thirteenth Finance Commission, year wise as follows: for the financial year 2010-11 30.3 percent of GSDP for the financial year 2011-12 29.6 percent of GSDP for the financial year 2012-13 28.9 percent of GSDP for the financial year 2013-14 28.2 percent of GSDP for the financial year 2014-15 27.6 percent of GSDP;] (d) limit the amount of annual incremental risk weighted guarantees to 6 [200 percent] of the TRR in the year preceding the current year: Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section due to 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: Provided further that a statement in respect of the ground or grounds specified in the first proviso shall be placed before the House or Houses of the Legislature, as soon as may be, after such deficit amount exceeds the aforesaid targets.