Amendment of section 3

For section 3 of the Chhattisgarh Fiscal Responsibility and Budget Management Act (No. 16 of 2005), the following shall be substituted namely :- "3. (1) Annual targets :- By the 31st day of March 2009, the State Government shall take appropriate measures to reduce the revenue deficit. The State shall make every endeavour to maintain nominal revenue surplus in each financial year beginning with 2005-06 but however, under no circumstance, the state should exceed revenue deficit as below :- 2005-06 Rs. 253.20 crore; 2006-07 Rs. 168.80 crore; 2007-08 Rs. 84.4 crore; 2008-09 and later Zero revenue deficit. (2) The State Government shall reduce fiscal deficit every year beginning with financial year 2005-06 by an amount atleast equivalent to one fourth of what actual fiscal deficit as a percentage of GSDP exceeds 3% in the financial year 2004-05, so that fiscal deficit is brought down to not more than 3 percent of GSDP at the end of March, 2009. (3) The State Government shall not give new guarantees, in any financial year beginning with the financial year 2005-06, in excess of 1.5 percent of GSDP in nominal terms or 0.5% of GSDP on risk weighted basis, whichever is lower. (4) The State Government shall not assume additional total liabilities in excess of 5 percent of GSDP for any financial year beginning with 2005-06. 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 or such other exceptional grounds as the State Government may specify."