(1) The Minister-in-charge of the Department of Finance shall review, after every six months, the trends in receipts and expenditure in relation to the budget, and place before the Legislative Assembly the outcome of such reviews. The review report shall be in such form as may be prescribed and shall explain,-
(a) any deviation or likely deviation in meeting the obligations cast on the State Government under this Act;
(b) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes, and how much of the deviation can be attributed to general economic environment and to policy changes by the State Government; and
(c) the remedial measures the State Government proposes to take.
(2) Whenever there is a prospect of either shortfall in revenue or excess of expenditure over pre-specified levels for a given year on account of any new policy decision of the State Government that affects either the State Government or its Public Sector Undertakings, the State Government, prior to taking such policy decision, shall take measures to fully offset the fiscal impact for the current and future financial years by curtailing the sums authorized to be paid and applied from and out of the Consolidated Fund of the State under any Act enacted by the Legislative Assembly to provide for the appropriation of such sums, or by taking interim measures for revenue augmentation, or by taking up a combination of both:
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.
2 [(3) The State Government may entrust the Comptroller and Auditor General of India to review, the compliance of the provisions of this Act in the manner as may be prescribed and such reviews shall be laid on the table of Legislative Assembly of the State.]