Measures for Fiscal Transparency

(2) In particular, and without prejudice to the generality of the foregoing provisions, the said Minister shall make a statement explaining, - (a) any deviation in meeting the obligations cast on the State Government under this Act; (b) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and (c) the remedial measures, the State Government proposes to take. (3) Whenever there is either shortfall in revenue or excess of expenditure over the prescribed levels during any period in a financial year, the State Government shall proportionately curtail the sums, authorized to be paid and applied from and out of the Consolidated Fund of the State under any Act enacted by the Punjab State Legislature to provide for the appropriation of such sums: Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of the State under clause (3) of article 202 of the Constitution. (4) Whenever outstanding guarantees exceed the limits specified in clause (d) of sub-section (2) of section 4, no fresh guarantee shall be given except for the purpose of replacing high cost debt with low cost debt in such a way that there is no net increase in out-standing guarantees after such debt swap. (5) No department of the State Government shall allow any liabilities, which have become due, to remain unpaid for a period of more than three months or to incur fresh liabilities, if previously incurred liabilities, have remained unpaid for a period of more than three months. (6) Any measure proposed in the course of the financial year, which may lead to an increase in revenue deficit, either through enhanced expenditures or loss of revenue, shall be accompanied by remedial measures, which will neutralize such increase or loss and such measures shall be clearly mentioned. (7) The State Government may assign an independent external agency to carry out the periodic review for the compliance of the provisions of this Act in the manner as may be prescribed.