Fiscal Targets

(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 at least 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; Provided that for the financial years from 2015-16 to 2019-20, the Revenue Deficit shall not be more than 2.5 % of GSDP including onetime additional borrowing of Rs. 2,534 crore permitted by Government of India for the year 2019-20. Provided further that for the financial year ending March 2021, the Revenue Deficit shall be contained within 4.5% of GSDP and reduced progressively thereafter. (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. Provided that for the financial year ending March, 2009 the fiscal deficit shall not be more than 3.5 percent of G.S.D.P and for the financial year ending March, 2010 the fiscal deficit shall not be more than 4 percent of G.S.D.P. Provided further that for the financial years from 2015-16 to 2020-21, the Fiscal Deficit shall not be more than 5 % of GSDP, including onetime additional borrowing of Rs. 2,534 crore permitted by Government of India for the year 2019-20 and including 2% of GSDP additional borrowing permitted by Government of India for FY 2020-21 in the wake of Covid-19 pandemic, and sought to be progressively reduced thereafter. (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; (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 (ccc) ensure that for the financial years from 2015-16 to 2020-21, the outstanding total liabilities do not exceed 35 per cent of the estimated GSDP and maintain thereafter, including onetime additional borrowing of Rs. 2,534 crore permitted by Government of India for the year 2019-20 and 2% of GSDP additional borrowing permitted by Government of India for FY 2020-21 in the wake of Covid-19 pandemic. (d) limit the amount of annual incremental risk weighted guarantees to 90 per cent 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 maybe, after such deficit amount exceeds the aforesaid targets.