Official

For clause (ii) sub-section (2) of section 8 of the Manipur Fiscal Responsiblllty and T;JndgetManagement Act 2005 the following shall be substituted, namely:- "(ii) Fiscel deficit sha'rl be anchored to an annual limit of 3% of Gross State Domestic product. There shall be flexibi!ity of 0.25% over end above 3% for any given year for which the borrowing limits are to be fixed if the State's debt-Gross State Domestic Product ratio is less than or equal to 25% in the preceding year. Furthermore, the State Government shall be further eligible for an additional borrowing limit of 0.25% of GSDP in a given year for which the borrowing limits are to be fixed if the interest payments are less than or equal to 10% of the revenue receipts in the preceding year. Thus, the maximum fiscal deficit relative to Gross State Domestic Product in any given year shall be 3 .5%. The flexibility in availing the additional limit of 0.5% either fully or partially, i,e. 0.25% only, shall be subject to the condition that there is no revenue deficit in the year in which borrowing limits are to be fixed and the immediately preceding year."