Vidhi Codex

The Kerala Fiscal Responsibility Act, 2003

The Kerala Fiscal Responsibility Act, 2003

Finance200313 sections

The Kerala Fiscal Responsibility Act, 2003, regulates the financial planning, state borrowing, and budgeting practices of the Government of Kerala. Applying directly to the state government, this law mandates the systematic elimination of revenue deficits, reduction of public debt, and strict limits on annual borrowing relative to the size of the state economy. This legislation matters because it secures long term state economic stability and protects public resources. By enforcing transparency in state finances, establishing an independent review committee, and requiring government officials to publicly explain budget failures, it ensures the government is financially accountable to its citizens and taxpayers.

Start reading →Read full ActSections
  1. 0. Preamble
  2. 1. Short title and commencement.
  3. 2. Definitions.
  4. 3. Fiscal Policy Statement to be laid before the Legislative Assembly.
  5. 4. Fiscal Management Principles.
  6. 5. Measures for Fiscal Transparency.
  7. 6. Public Expenditure Review Committee.
  8. 7. Powers and functions of the Committee.
  9. 8. Measures to enforce compliance.
  10. 9. Power to make rules.
  11. 10. Protection of action taken in good faith.
  12. 11. Application of other laws not barred.
  13. 12. Removal of difficulties.

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