Medium Term Fiscal Plan.- (1) There shall be prepared in each financial year a

Medium Term Fiscal Plan along with the annual budget in respect of every local fund authority and shall be submitted for approval of the concerned authority.

1. (2) The medium Term Fiscal Plan shall set forth a four-year rolling target for the 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:-
3. (7) the balance between revenue receipts and revenue expenditures; and
4. (8) the use of capital receipts including borrowings for generating productive assets.
5. (4) The Medium Term Fiscal Plan shall, inter alia, contain,-
   • (a) the medium term fiscal objectives of the local fund authority;
   • (b) the mission, objectives and goals of the local fund authority;
   • (c) an evaluation of the performance of the 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;
   • (d) a statement on recent trends and future prospects for growth and development affecting fiscal position of the local fund authority;
   • (e) the strategic priorities of the local fund authority in the fiscal area for the ensuing financial year;
   • (f) the policies of the local fund authority for the ensuing financial year relating to expenditure, borrowings and other liabilities, lending and investments. and all such activities which have potential budgetary implications and the key fiscal measures and targets pertaining to each of these;
   • (g) an evaluation as to how the current policies of the local fund authority are in conformity with the financial management principles set out in section 4 and the fiscal objectives set out in the Medium Term Fiscal Plan;
   • (h) a clear linkage of the physical and financial targets;
     • (i) the key performance areas and corresponding performance indicators in as much quantitative detail as possible.
6. (5) The Medium Term Fiscal Plan shall be the source document for the preparation of the annual budget and shall address the prime needs of the citizens as relevant to the specific local fund authority such as water supply, construction of road, education, public

health, solid waste management and the like.

1. (6) The Medium Term Fiscal Plan shall have a functional focus and provide for backend modalities such as fund based accounting system (FBAS), computerisation and a realistic and transparent budgeting process.
2. (7) The Medium Term Fiscal Plan shall be in such form as may be prescribed.