Medium Term Fiscal Plan to be laid before the Legislative Assembly

(1) The Government shall, in each financial year, lay before the Legislative Assembly a Medium Term Fiscal Plan along with the Budget. (2) The Medium Term Fiscal Plan shall set forth a three-year rolling target for the prescribed fiscal indicators with specification of underlying assumptions relating to parameters underlying projections for receipts and expenditure and the band within which they can vary while remaining consistent with targets. (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 expenditure; (ii) the use of capital receipts including borrowings for generating productive assets. (4) The Medium Term Fiscal Plan shall, inter-alia, contain :- (i) the medium term fiscal objectives of the Government; (5) The Medium Term Fiscal Plan shall contain, - (i) the evaluation of the performance of the prescribed fiscal indicators of the previous year versus the targets set out in the Medium Term Fiscal Plan, and the likely performance in the current year as per revised estimates; (ii) a statement on recent economic trends and its prospective from growth and development affecting fiscal position of the Government; (iii) the strategic priorities of the Government in the fiscal matters for the ensuing financial year; (iv) the policies of the Government for the ensuing financial year relating to taxation, expenditure, borrowings and other liabilities, subsidies, lending and investments, guarantees and activities of Public Sector Undertakings which have potential budgetary implications and the key fiscal measures and targets pertaining to each of these; (v) an evaluation as to how the current policies of the Government are in conformity with the fiscal management principles set out in section 4 and the fiscal objectives set out in the Medium Term Fiscal Plan; (6) The Medium Term Fiscal Plan shall be in such form as may be prescribed.