Fiscal policy statements to be laid before the Legislature

The State Government shall in each financial year lay before the State Legislature, the following statement of fiscal policy along with the annual financial statement and demands for grants, namely :-

1. (a) The Macroeconomic Framework Statement;
2. (b) The Medium Term Fiscal Policy Statement; and
3. (c) The Fiscal Policy Strategy Statement.

1. (2) The Macroeconomic Framework Statement shall contain an overview of the State economy, an analysis of growth and sectoral composition of GSDP, an assessment related to State Government finances and future prospects. In particular and without prejudice to the generality of the foregoing provisions the macroeconomic framework statement shall contain an assessment relating :
   • (i) The growth in the GSDP
   • (ii) The fiscal balance of the State Government as reflected in the revenue balance and gross fiscal balance. (3)
   • (i) The Medium Term Fiscal Policy Statement shall set forth in such form as may be prescribed the fiscal management objectives of the State Government and three-year rolling targets for the prescribed fiscal indicators with clear enunciation of the underlying assumptions.
   • (ii) In particular and without prejudice to the provisions contained in sub-section (1), the Medium Term Fiscal Policy Statement shall include the various assumptions behind the fiscal indicators and an assessment of sustainability relating to :-
   • (a) the balance between revenue receipts and revenue expenditure;
   • (b) the use of capital receipts including borrowings for generating productive assets;
2. (4) The Fiscal Policy Strategy Statement shall be in such form as may be prescribed and shall contain, inter alia :-
   • (i) the fiscal policies of the State Government for the ensuing year relating to taxation, expenditure, borrowings and other liabilities, lending, investments, other contingent liabilities, user charges on public goods/utilities and description of other activities, such as guarantees and activities of Public Sector Undertakings which have potential budgetary implications;
   • (ii) the strategic priorities of the State Government in the fiscal area for the ensuing year;
   • (iii) the key fiscal measures and the rational for any major deviation in fiscal measures pertaining to, taxation, subsidy, expenditure, borrowings and user charges on public goods/utilities; and
   • (iv) an evaluation of the current policies of the State Government vis-a-vis the fiscal management principles set out in Section 3 and the fiscal objectives set out in the Medium-Term Fiscal Policy Statement in sub-section 3
3. (1) of section 4.