S [ate budget.

Fiscal management principles

1. (1) The State Government shall take appropriate measures to reduce the fiscal deficit and revenue deficit so as to eliminate revenue deficit by the 31st March, 2009 and bring fiscal deficit down to 3% of the GSDP by the 31st March 2009.
2. (2) The State Government shall, by rules made by it, specify-
   • (a) the annual targets for the reduction of fiscal deficit and revenue deficit during the period beginning with the commencement of the Act and ending on 31st March, 2009.
3. (3) The annual targets of assuming contingent liabilities in the form of guarantees and the total liabilities as percentage of GSDP. Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section on the ground or grounds of unforeseen demands on the finances of the State Government arising out of internal disturbance or natural calamity.