The Karnataka Fiscal Responsibility Act, 2002
The Karnataka Fiscal Responsibility Act, 2002
This Act establishes a framework for prudent financial management and fiscal discipline within the Karnataka State Government. It applies directly to the state government, public sector undertakings, and government-backed agencies. The law requires the state to eliminate its revenue deficit, cap its fiscal deficit relative to the state gross domestic product, limit public debt, and present a four-year Medium Term Fiscal Plan alongside annual budgets. By legally enforcing fiscal transparency, regular legislative reporting, and responsible borrowing practices, the Act ensures long-term economic stability, prevents excessive state debt from burdening future generations, and guarantees public funds are used productively.
- 0. Preamble
- 1. Short title, extent and commencement
- 2. Definitions.- In this Act, unless the context otherwise requires,
- 3. Medium Term Fiscal Plan to be laid before the Legislature.- (1) The State
- 4. Fiscal Management Principles
- 5. Measures for Fiscal Transparency
- 6. Measures to enforce compliance
- 7. Power to make rules.- (1) The State Government may, by notification in the
- 8. Rules to be laid before Legislature
- 9. Protection of action taken in good faith
- 10. Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
- 11. Power to remove difficulties.
PDF: pending for this language.