Fiscal Policy Statement in sub-section (1) of section-7 and fiscal targets set out in section-9.

Fiscal Targets.- (1) The State Government may prescribe such targets as may be deemed necessary for giving effect to the fiscal management objectives.

1. (2) In particular, and without prejudice to the generally of the foregoing provisions, the State Government shall -
   • (a) beginning from financial year 2006-07 and in case there being revenue deficit, reduce revenue deficit/Gross State Domestic Product ratio every year by at least 0.1 percent depending upon the economic situation, eliminates revenue deficit by 2008- 09 and generate revenue surplus thereafter;
   • (b) beginning from financial year 2006-07 reduce fiscal deficit / Gross State Domestic Product ratio by at least 0.3 percent per year, if it is more than 3 percent and to not more than 3 percent by 2008-09; Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section due to unforeseen circumstance 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.