(1) This Act may be called the Haryana Fiscal Responsibility and Budget Management Act, 2005.
Short title and commencement.
1 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary), dated 09th June 2005, page-2624.
2 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary), dated 13th December, 2005, page-4659.
3 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary), dated 30th July, 2009, page-2895.
4. For Statement of objects and Reasons, see Haryana Government Gazette (Extraordinary) dated 08th March, 2010, page 897.
5. For Statement of objects and Reasons, see Haryana Government Gazette (Extraordinary) dated 3rd March, 2011, page 775.
6. For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary), dated 25th August, 2020, page-1760.
FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT 2005 : Hr. Act 6] 376 1(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. In this Act, unless the context otherwise requires,—
(a) 2[“aided institution employee” means a person in the whole time employment of any primary school, secondary school, college, university or technical education institution recognised and aided by the State Government for payment of salary, etc.;]
(aa) “budget” means the annual financial statement laid before the House of the Legislature of the State of Haryana under article 202 of the Constitution of India;
(b) “current year” means the financial year preceding the ensuing year;
(c) “ensuing year” means the financial year for which the budget is being presented;
(d) “financial year” means the year beginning on the 1st April and ending on 31st March next following;
(e) “GSDP” means Gross State Domestic Product at current market prices;
(f) “fiscal deficit” is the excess of aggregate disbursements (net of debt repayments) over revenue receipts, recovery of loans and non-debt capital receipts;
(g) “fiscal indicators” are such indicators as may be prescribed for evaluation of the fiscal position of the State Government;
(h) “fiscal targets” are the numerical ceilings and proportions to total revenue receipts (TRR) or GADP for the fiscal indicators;
(i) “prescribed” means prescribed by rules made under this Act;
(j) “previous year” means the year preceding the current year;
3[(jj) “public sector employee” means a person in the wholetime employment of any public sector undertaking including boards and corporations of the State of Haryana and drawing salary from the concerned institute;]
(k) “revenue deficit” means the difference between revenue expenditure and total revenue receipts (TRR);
Explanation.– Total revenue receipts (TRR) includes State’s own revenue receipts (both tax and non-tax) and current transfers from the Centre (comprising grants and State’s share of Central taxes).
1. The Act came into force vide Haryana Government Finance Department, Notification No.
S.O. 95/HA.6/2005/S.I./2005, dated 7-12-2005 w.e.f. 7-12-2005.
2. Inserted by Haryana Act 8 of 2006.
3. Inserted by Haryana Act 8 of 2006.
FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT [2005 : Hr. Act 6 Definitions.
377
(l) “special purpose vehicle” means an organisation or institution set up by State Government to discharge specific assignments/ duties within a specified period in respect of financial transactions or raising of loans from financial institutions or the market for specific purposes against State guarantees;
(m) “State Government” means the Government of the State of Haryana; and
(n) “total liabilities” means the liabilities under the Consolidated Fund of the State and the public accounts of the State and shall also include borrowings by the public sector undertakings and the special purpose vehicles and other equivalent instruments including guarantees where the principal and/or interest are to be serviced out of the State budgets.
3. The State Government shall—
(a) take appropriate measures to eliminate the revenue deficit and thereafter build up adequate revenue surplus and contain the fiscal deficit at a sustainable level, and utilize such surplus for discharging the liabilities in excess of the assets or for funding capital expenditure;
(b) pursue policies to raise non-tax revenue with due regard to cost recovery and equity; and
(c) lay down norms for prioritization of capital expenditure, and pursue expenditure policies that would provide impetus for economic growth, poverty reduction and improvement in human welfare.
4. The State Government shall be guided by the following fiscal management principles, namely:—
(a) transparency in setting the fiscal policy objectives, the implementation of public policy and the publication of fiscal information so as to enable the public to scrutinize the conduct of fiscal policy and the State of public finances;
(b) stability and predictability in fiscal policy making process and in the way fiscal policy impacts the economy;
(c) responsibility in the management of public finances, including integrity in the budget formulation;
(d) fairness to ensure that policy decisions of the State Government have due regard to their financial implications on future generations; and
(e) efficiency in the design and implementation of the fiscal policy and in managing the assets and liabilities of the public sector balance sheet.
Fiscal management objectives.
Fiscal management principles.
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5. The State Government shall in each financial year lay before the House of the State Legislature, the following statements of fiscal policy along with the budget, namely:—
(a) the Macroeconmic Framework Statement;
(b) the Medium Term Fiscal Policy Statement; and
(c) the Fiscal Policy Strategy Statement.
6. The macroeconomic framework statement, in such form as may be prescribed, shall contain an overview of the State economy, an analysis of growth and sectoral composition of GSDP, an assessment related to State Government finances and future prospects.