Fiscal Targets

(1) The State Government may prescribe such targets as it may consider necessary for making the fiscal management objectives effective. (2) In particular and without prejudice to the generality of the foregoing provisions, the State Government - (a) shall reduce revenue deficit in every financial year so as to eliminate it by 31st March, 2009 and thereafter increase revenue surplus; (b) shall reduce fiscal deficit in every financial year so that it remains not more than 3.00 percent of GSDP by 31st March, 2009; (c) shall ensure that within a period of 10 years i.e. 31st March, 2015, the total liabilities do not exceed 40 percent of the estimated GSDP for that year; (d) shall restrict the annual growth rate of guarantees so as to ensure that the total guarantees of the current year do not exceed 80 percent of the total revenue receipts of the preceding year: Provided that the revenue deficit and fiscal deficit may exceed the limit specified under this section based on the ground or grounds of shortfall in the central tax devolution in relation to the Union budget estimates and/or based on the ground or grounds of unforeseen liabilities arising out of internal disturbance or natural calamity or such other exceptional grounds as the State Government may specify: Provided further that a statement in relation to the ground or grounds specified in the first proviso shall be laid before the State Legislature as contained in section 11.