Fiscal Management Targets

(i) Without prejudice to the generality of the previous provisions, the State Government shall ensure: (a) to reduce the revenue deficit to zero by the end of 31st March, 2009; (b) to reduce the fiscal deficit to a maximum of three percent of the estimated Gross State Domestic Product by the end of 31st March, 2009; (c) to reduce the fiscal deficit by the specified percentage of the Gross State Domestic Product every financial year so that the target specified in sub-clause (b) can be achieved; (d) to prepare a surplus of more than 3 percent of the Gross State Domestic Product by the year ending 31st March, 2008; (e) Other important monitorable fiscal targets shall be as follows: (i) by the year ending 31st March, 2008, the percentage of salary in relation to State revenue should be reduced to 80 percent; (ii) by the year ending 31st March, 2008, non-interest committed revenue expenditure in relation to State revenue and assigned revenue should be reduced to 55 percent; and (iii) by the year ending 31st March, 2009, the ratio of State revenue receipts and revenue deficit should be reduced to 0 percent; (p) interest payments should be limited to 18 to 25 percent of revenue receipts to bring debt to a self-sustaining level; (N) total debt of the State by the end of the financial year 2007-08 should be limited to 300 percent of the total receipts of the State. Provided that if there is an unforeseen demand on the State's finances due to a natural calamity, the revenue deficit and fiscal deficit may exceed the limit specified in this section, but the extra expenditure due to the above-mentioned reasons shall not exceed the actual financial cost. Provided also that the specific purpose(s) for which fiscal deficit is likely to increase and the report, reasons, etc. related to exceeding the specified limit of the deficit shall be presented before the Legislative Assembly as soon as possible. [Note: Amendment Act 2015 inserts/supersedes 5(1)(b) to read: "For the financial years 2015-16 and 2016-17, the fiscal deficit be limited to 3.50 percent of the estimated Gross State Domestic Product and for the financial years 2017-18, 2018-19 and 2019-20, up to 3.25 percent. Loans taken from the open market in the financial years 2015-16 and 2016-17 for financial restructuring and development of the State's electricity distribution company (DISCOM) under the Central Government's sponsored scheme UDAY will be outside the above conditions."]