Medium Term Fiscal Plan to be laid before the Legislature

(1) The State Government shall lay in each financial year before Legislative Assembly a Medium Term Fiscal Plan along with the Annual Budget. (2) The Medium Term Fiscal Plan 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 Plan shall include an assessment of sustainability relating to- (i) the balance between revenue receipts and revenue expenditures; (ii) the use of capital receipts including market borrowings for generating productive assets; (iii) the medium term fiscal objectives of the State Government; (iv) the evaluation of performance of the prescribed fiscal indicators in the previous year vis-a-vis the targets set out earlier and the likely performance in the current financial year as per the revised estimates; (v) the strategic priorities of the State Government in the fiscal area for the current financial year in form of a Fiscal Policy Strategy; and (vi) the policies of the State Government for the current financial year relating to expenditure, borrowings and other liabilities, lending and investments and description of other activities, such as guarantees and activities of Public Sector Undertakings which have potential budgetary implications. (4) The Medium Term Fiscal Plan shall be in such Form as may be prescribed. The fiscal indicators required to be prescribed for the purposes of the Act shall be as follows :- (a) revenue deficit as a percentage of Gross State Domestic Product; (b) fiscal deficit as a percentage of Gross State Domestic Product; (c) Primary deficit/ surplus as a percentage of Gross State Domestic Product; and (d) total debt stock as a percentage of Gross State Domestic Product. In Section 5 of the principal Act,-(i) in clause (a), after the words “rupees two hundred and eighty-five crores” occurring at the end, the words and figures “and after commencement of the Odisha Fiscal Responsibility and Budget Management (Amendment) Act, 2011, the revenue deficit shall be maintained at zero for the financial year, 2011-12 and for subsequent financial years” shall be inserted; (ii) in clause (b), after the words and figures “31st day of March, 2009” occurring at the end, the words and figures “and from financial year, 2011-12 and onwards shall contain fiscal deficit within three per cent of the estimated Gross State Domestic Product (GSDP)” shall be inserted; (iii) clause (c) shall be omitted; (iv) clause (d) shall be omitted; (v) sub-clause (iii) of clause (e) shall be omitted; (vi) in clause (f), for the words “limited to eighteen to twenty-five per cent”, the words “limited to fifteen per cent” shall be substituted; (vii) after clause (g), the following clause shall be inserted, namely;- “(h) notify the debt GSDP ratio limit fixed by the Finance Commission and guidelines, if any, issued by the Government of India from time to time, and ensure that the debt GSDP ratio are maintained in accordance with the said limit.”; and (viii) for the first and second provisos, the following provisos shall be substituted, namely:- “Provided that the revenue deficit and fiscal deficit may exceed the limits specified under this section on ground of shortfall in the central tax devolutions in relation to the budgetary estimates of the Union of India or unforeseen demands on the finances of the State Government arising out of natural calamity or such other exceptional ground as the State Government may, by order, specify: Provided further that a statement in respect of the ground on which the deviation has been made under the first proviso shall be placed before the State Legislature.”.