Medium Term Fiscal Plan

[See rule 4 (2)] A. Fiscal Indicators – Rolling Targets [Table details regarding Revenue Deficit, Fiscal Deficit, Primary Deficit, Total Debt Stock percentages of GSDP]. B. Assumptions underlying the Fiscal Indicators - 1. Revenue receipts (a) Tax Revenue – Tax wise growth rates (b) Non Tax Revenue – policies and approaches (c) Devolution to States – Plan Receipts from Government of India 2. Capital receipts – (a) Recovery of Loans & Advances – Principles and measures adopted by State Government to enhance recovery of loans and advances (b) Other Receipts – New dis-investment/ sale decisions taken by State Government (c) Borrowings – Plan Borrowings and other internal borrowings including proposals for debt swap 3. Total Expenditure – Policy Stance (a) Revenue Account - (i) Salary & pension – measures to control (ii) Subsidies – Policies and new proposals (iii) Maintenance Expenditure – Norms and Finance Commission recommendations (iv) Calamity Relief – (v) Others (b) Capital Account - (i) Loans & Advances – (ii) Capital Outlay – measures taken by the State Government to enhance provision for developmental expenditure (c) Assessment of sustainability relating to - (i) The balance between revenue receipts and revenue expenditures. The MTFP may specify the tax-GSDP ratio for the current years and the subsequent two years. It may discuss the non tax revenue and the policies concerning the same. Expenditure on revenue account, both plan and non plan may also be made with particular emphasis on the measures proposed to meet the medium term fiscal objectives. (ii) The use of capital receipts including market borrowings for generating productive assets. The Fiscal Policy Strategy statement may specify the proposed use of capital receipts for generating productive assets in different categories. It may spell out proposed changes among these categories and discuss it in terms of overall policy of the Government.