Medium Term Fiscal Plan to be laid before the Legislature.- (1) The State

Government shall in each financial year lay before both Houses of the Legislature a Medium Term Fiscal Plan along with the annual budget.

1. (2) The Medium Term Fiscal Plan shall set forth a four-year rolling target for the prescribed fiscal indicators with specification of underlying assumptions.
2. (3) In particular and without prejudice to the provisions contained in sub-section

(2), the Medium Term Fiscal Plan shall include an assessment of sustainability relating to,–

1. (i) the balance between revenue receipts and revenue expenditures;
2. (ii) the use of capital receipts including borrowings for generating productive assets.

1. (4) The Medium Term Fiscal Plan shall, inter alia, contain,–
   • (a) the medium term fiscal objectives of the State Government;
   • (b) an evaluation of the performance of the prescribed fiscal indicators in the previous year vis-à-vis the targets set out earlier, and the likely performance in the current year as per revised estimates.
   • (c) a statement on recent economic trends and future prospects for growth and development affecting fiscal position of the State Government.
   • (d) the strategic priorities of the State Government in the fiscal area for the ensuing financial year;
   • (e) the policies of the State Government for the ensuing financial year relating to taxation, expenditure, borrowings (including borrowings by Public Sector Undertakings and Special Purpose Vehicles and other equivalent instruments where liability for repayment is on the State Government, with ceiling fixed for each agency) and other liabilities, lending and investments, pricing of administered goods and services and description of other activities, such as guarantees and activities of Public Sector Undertakings which have potential budgetary implications; and the key fiscal measures and targets pertaining to each of these;
   • (f) an evaluation as to how the current policies of the State Government are in conformity with the fiscal management principles set out in Section 4 and the fiscal objectives set out in the Medium Term Fiscal Plan.
2. (5) The Medium Term Fiscal Plan shall be in such form as may be prescribed.