Punjab Fiscal Responsibility and Budget Management Act, 2003

No: 11 Dated: May, 05 2003

THE PUNJAB FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT (ACT. 2003

(Punjab Act No. 11 of 2003)

     An Act to provide for the responsibility of the State Government to ensure inter-generational equity in fiscal management and long-term financial stability by achieving sufficient revenue surplus, containing fiscal deficit and prudential debt management consistent with fiscal sustainability through limits on the State Government borrowings, debt and deficits, greater transparency in fiscal operations of the State Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto.

    Be it enacted by the Legislature of the State of Punjab in the Fifty-fourth Year of the Republic of India as follows :-

1. Short title and commencement. - (1) This Act may be called Punjab Fiscal Responsibility and Budget Management Act, 2003.

(2) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint in this behalf.

2. Definitions. - In this Act, unless the context otherwise requires, -

(a) "annual budget" means the annual financial statement laid before the Punjab Legislative Assembly under Article 202 of the Constitution of India;

(b) "fiscal deficit" means revenue deficit, plus budgetary capital expenditure including net loans advanced, minus other non-debt capital receipts. It is, however, made clear that for the purpose of this definition, off budget borrowings shall be treated as borrowings by the State Government, and the expenditure incurred on subsidies due to the enterprises in the power sector whether paid or not, shall be treated as expenditure by the State Government;

(c) "fiscal indicators" means the measures such as numerical ceilings and proportions to gross domestic product, as may be prescribed, for the evaluation of the fiscal position of the State Government;

(d) "off budget borrowings" means borrowings by the State Government or its Agencies which are not reflected in the Budget;

(e) "prescribed" means prescribed by rules made under this Act;

(f) "Reserve Bank" means the Reserve Bank of India constituted under sub- section (1) of Section 3 of the Reserve Bank of India Act, 1934 (Act 2 of 1934);

(g) "revenue deficit" means the budgetary revenue receipt, minus budgetary revenue expenditure. It is, however, made clear that for the purpose of calculating revenue deficit, expenditure incurred on subsidies due to the enterprises in the power sector, whether paid or not, shall be treated as expenditure incurred by the State Government;

(h) "State Government" means the Government of the State of Punjab in the Department of Finance; and

(i) "total liabilities" means the liabilities under the Consolidated Fund of the State and the public account of the State referred to in Article 266 of the Constitution of India.