The Maharashtra Fiscal Responsibility and Budgetary Management Act, 2005
Chapter II BUDGET TRANSPARENCY
Finance200512 sections5 chapters
Chapter II BUDGET TRANSPARENCY
3. Fiscal Policy Statement to be laid before State Legislature.
Statutory text
- (1) The State Government shall lay, in each financial year, before both Houses of the State Legislature the following statements of fiscal policy alongwith the annual financial statement and demands for grants, namely:-
- (a) the Medium-term Fiscal Policy Statement,
- (b) the Fiscal Policy Strategy Statement.
- (2) The Medium-term Fiscal Policy Statement shall set forth a three year rolling target for prescribed fiscal indicators with specification of underlying assumptions.
- (3) In particular and without prejudice to the provisions contained in sub-section (2), the Medium-term Fiscal Policy Statement shall include an assessment of sustainability relating to,-
- (i) the balance between revenue receipts and revenue expenditures;
- (ii) the use of capital receipts for generating productive assets.
- (4) The Fiscal Policy Strategy Statement shall, inter-alia, contain,-
- (a) the policies of the State Government for the ensuing financial year relating to taxation, expenditure, borrowings and other liabilities, lending and investments, description of other activities such as underwriting and guarantees which have potential budgetary and fiscal implications;
- (b) the strategic priorities of the State Government for the ensuing financial year in the fiscal area;
- (c) the key fiscal policies and rationale for any major deviation in fiscal measures pertaining to taxation and expenditure;
- (d) an evaluation as to be how the current policies of the State Government are in conformity with the fiscal management principles set out in section 5 and the objectives set out in the Medium-term Fiscal Policy Statement.
- (5) The Medium-term Fiscal Policy Statement and the Fiscal Policy Strategy Statement referred to in sub-section (1) shall be in such form as may be prescribed.
Chapter II BUDGET TRANSPARENCY
4. Disclosures.
Statutory text
- (1) The State Government shall take suitable measures to ensure greater transparency in its fiscal operations in the public interest.
- (2) In particular and without prejudice to the generality of the foregoing provisions the State Government shall, at the time of presentation of annual financial statement and demands for grants, make such disclosures and in such form as may be prescribed.
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