(1) The State Government may prescribe such targets as may be deemed necessary for giving effect to the fiscal management objectives.
(2) In particular, and without prejudice to the generally of the foregoing provisions, the State Government shall -
(a) beginning from financial year 2006-07 and in case there being revenue deficit, reduce revenue deficit/Gross State Domestic Product ratio every year by at least 0.1 percent depending upon the economic situation, eliminates revenue deficit by 2008- 09 and generate revenue surplus thereafter;
(b) beginning from financial year 2006-07 reduce fiscal deficit / Gross State Domestic Product ratio by at least 0.3 percent per year, if it is more than 3 percent and to not more than 3 percent by 2008-09;
Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section due to unforeseen circumstance arising out of internal disturbance or natural calamity or such other exceptional grounds as the State Government may specify,
Provided further that a statement in respect of the ground or grounds specified in the first proviso shall be placed before the House or Houses of the Legislature, as soon as may be, after such deficit amount exceeds the aforesaid targets.
10. Measure for Fiscal Transparency - (1) The State Government shall take suitable measures to ensure greater transparency in its fiscal operations in the public interest and minimize as far as practicable, secrecy in the preparation of the budget.
(2) In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall, at the time of presentation of the budget, make disclosures on the following, along with detailed information in such forms as may be prescribed:
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(a) the significant changes in the accounting standards, policies and practices affecting or likely to affect the computation of fiscal indicators;
(b) details of borrowings by way of Ways and Means Advances/Overdraft availed of from the Reserve Bank of India;
(c) the number of employees in government, public sector, and aided institutions and related salaries.
(3) Whenever the State Government undertakes to unconditionally and substantially repay the principal amount and/or pay the interest of any separate legal entity, it has to reflect such liability as the borrowings of the State.
11. Measure to Enforce Compliance - (1) The Minister- in- Charge of the Department of Finance (hereinafter referred to as Minister of Finance) shall review, every quarter, the trends in receipts and expenditure in relation to the budget estimates and place before the House or Houses of the Legislature, the outcome of such reviews.
(2) Whenever there is either shortfall in revenue or excess of expenditure over the intra-year targets mentioned is the Fiscal Policy Strategy Statement or the rules made under this Act, the State Government shall take appropriate measures for increasing revenue and/or for reducing the expenditure, including curtailment of the sums authorised to be paid and applied from out of the Consolidated Fund of the State.
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 or any other expenditure, which is required to be incurred under any agreement or contact, which cannot be postponed or curtailed.
(3) (a) Except as provided under this Act, no deviation in meeting the obligations cast on the State Government under this Act shall be permissible without approval of Legislature.
(b) Where owing to unforeseen circumstances, any deviation is made in meeting the obligations cast on the State Government under this Act, the Minister of Finance shall make a statement in both the Houses of Legislature explaining :-
(i) any deviation in meeting the obligations cast on the State Government under this Act;
(ii) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and
(iii) the remedial measures the State Government proposes to take
(4) Any measure proposed in the course of the financial year, which may lead to an increase in revenue deficit, either through increased expenditure or loss of revenue, shall be accompanied by a statement of remedial measures, proposed to neutralise such increase or loss and such statement shall be placed before both Houses of Legislature.
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(5) The state Government may set up an agency independent of the State Government to review periodically the compliance of the provisions of this Act and table such reviews in the Houses of the State Legislature.