Medium Term Fiscal Policy Statement to be laid before the Legislature

(1) The State Government shall present a medium-term fiscal plan along with the Annual Financial Statement in the State Legislature every financial year. (2) The medium-term fiscal plan shall set a three-year rolling target for prescribed fiscal indicators with a clear specification of underlying assumptions. (3) The medium-term fiscal plan shall, in particular, include the determination of sustainability relating to the following, without prejudice to the provisions contained in sub-section (2): (i) balancing between revenue receipts and revenue expenditure; (ii) use of capital receipts including market loans for the creation of productive assets; (iii) medium-term fiscal objective of the State Government; (iv) evaluation of the performance of fiscal indicators of the previous year against the targets set earlier and estimated performance in the current year in the light of the revised estimates; (v) fiscal policy priorities of the State Government for the current financial year; and (vi) fiscal policies of the State Government for the current financial year relating to expenditure, borrowing and other liabilities, lending and investments and other activities, such as guarantees and activities of public sector undertakings, for which potential budgetary implications exist. (4) The medium-term fiscal plan shall be in such form as may be prescribed.