(1) There shall he prepa red in each f inancial year a Medium Term Fiscal Plan along with the annual budge t in respect o f every Local Self- Government and shall be rubmit ted for approval of the concerned authority o f the Local Self-Government.
(2) The Medium Term Fiscal Plan shah set forth a f ive-year rolling target for the fiscal indicators with spec ification of under lying assumptions.
(3) In par ticula r and without jy ejudtce to the provisions contained in sub section (2), the Medium Term. Fiscal Plan shall include an assessment of sustainability rela ting to, -
(a) the balance be tween revenue receipts and revenue expenditures;
and
(b) .the use of capital receip ts including borrowings for generat ing produc tive assets,
(4) The Medium T enn Fiscal Plan shall, inter alia, contain, -
(a) the med ium term fiscal objectives o f the Local Self-Government;
(b) the mission, objectives and goals of the Local Self-Government;
(c) an eva luation of the performance of the fiscal indicators in the previous yea r vis-a-vis the targets sec out earl ier, and the likely performance in the current year as per revised estimates;
(d) a statement on recent trends and future prospects for growth and development affec ting fiscal pos ition of the Local Self- Government;
(e) the strategic priorities o f the Local Self-Government in the fiscal area for the ensuing financial, year;
(f) the policies o f the Local Self-Government for the ensuing financia l year relating to expenditure, borrowings and other liabilities, lending and investments and all such activities which have potential budgetary implications and the key fiscal measures and targets pertaining to each o f these;
(g) an evaluation as to ~cw the cunei it polic ies o f die Local Self- Government are in conformity vith the financial management principles set cut in sec tion 4 and the fiscal objectives set out in the Medium Term Fiscal Plan;
(h) a clear linkage cf the physical and financial targets;
(i) the key performance areas and corresponding performance indicators in as much quantitative detail as possible.
(5) The Medium Term Fiscal P lan shall be the source document for the prepara tion of the annual budget and shall address the prime needs of the ci tizens a s relevant to the specif ic Local Self-Government such as water supply, construction of road, education, public health, solid waste management and the like.
(6) The Medium Term Fiscal Plan shall have a functional focus and provide for backend modalities such as fund based accounting system (FBAS), computerization and a realistic and transparent budgeting process.
(7) The Medium Term Fiscal Plan shall be in the form as prescribed in Schedule-I.
4. Every Local Self-Gc vemres'-t shall be guided by the following financia l management principles, rnt sel y.-
(a) ensuring transparency m all stages o f policy making and implementation;
(b) introducing performance linked budget polic ies;
(c) providing for effective s ad sustained fiscal monitor ing systems;
(d) introducing robust financial management principles;
(e) maintain ing Local Self-Government’s debt at prudent levels;
(f) managing guarantees and other contingent liabilities prudently , with particular reference to the quality and level of such liabi lities;
(g) ensuring that policy decisions c f the Local Self-Government have due regard to the ir current financial pos ition and the financial implications on future generations;
1994 THE ASSAM GAZETTE. EXTRAORDINARY. SEPTEMBER 6, 2011 Measures for fiscal transparency Measures to enforce Fiscal Discipline (h ) adoptin g the accounting frame work for Local Self-Governments pres cribe d by Comptr oller an d Aud itor General of India;
(i) ensuri ng that borrowings are used for produ ctive purposes and accum ulation of capital assets , and are not applie d to finance current expenditure;
(j) purs uing tax policie s with due regard to econom ic efficiency and ' compliance costs;
(k ) purs uing fiscal po licies with due re gard to co st recov ery and equity;
(l) pursu ing expenditu re polic ies that wou ld provid e impetus for economic growth, pover ty reduc tion and improve ment in human welfare;
(m ) ensu ring that physical asse ts o f the Local Self-Governm ent are prope rly maintained; •
(n) disclo sing suffici ent inform ation t o allow the pu blic to scrutinize the condu ct of fiscal policy and the state o f Local Self-Government finances;
(o ) ensur ing that t he Local Self-Go vernme nt uses resource s in ways that give bes t valu e fo r money, and also ens ure th at pu blic assets are put to bes t possible use;
(p) mana ging expenditure con sistent with the level o f revenue generated;
(q) ' formula ting budge t in a rea listic and object ive m anner w ith due regar d to the general economic o utloo k an d rev enue prospe cts, and m inimize devia tions during the cour se o f the year;
(r) ensuring collection o f dues an d taxe s in an expeditiou s manner;
(s) ensur ing dis charge o f current liabilities in a timely manner,
(t) adopting appropria te tech niques f or measur ing th e cost of file services provi ded b y the Local Self- Gov ernm ent