THE KARNATAKA LOCAL FUND AUTHORITIES FISCAL RESPONSIBILITY ACT
The Karnataka Local Fund Authorities Fiscal Responsibility Act, 2003
This Act regulates the financial management of local fund authorities in Karnataka to ensure fiscal discipline and transparency. It applies to bodies that manage state government revenue, such as municipalities and panchayats. The law requires these authorities to prepare a Medium Term Fiscal Plan alongside their annual budget, setting four-year targets for revenue and expenditure. This plan ensures that borrowing is used for productive assets and that spending aligns with citizen needs like water and roads. By mandating clear linkages between physical and financial goals, the Act promotes sustainable growth and accountable governance for local bodies.
- 0. Preamble
- 1. Short title, extent and commencement
- 2. Definitions.- In this Act, unless the context otherwise requires,-
- 3. Medium Term Fiscal Plan.- (1) There shall be prepared in each financial year a
- 4. Financial management principles
- 5. Measures for fiscal transparency.
- 6. Measure to enforce compliance to this Act
- 7. Publication of financial document and annual report
- 8. House of the State Legislature.
- 9. Protection of action taken in good faith
- 10. Application of other laws
- 11. Removal of difficulties
PDF: pending for this language.