(1) This Act may be called the Madhya Pradesh Rajkoshiya Short title, extent Uttardayitva Evam Budget And commencement Prabandhan Adhiniyam, 2005
(2) It extends to the whole of the State of Madhya Pradesh.
(3) 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: - Definitions a) " budget" means the annual financial statement laid before the State Legislature under Article 202 of the Constitution;
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 commencing on the first day of April;
e) "fiscal deficit" means the excess of aggregate disbursements (net of debt repayments) over revenue receipts, recovery of loans and non debt capital receipts of the State Government;
f) "fiscal targets" means the measures such as numerical ceilings and proportions to GSDP, as may be prescribed for evaluation of the fiscal position of the State Government;
g) "GSDP" means Gross State Domestic Product at current market prices.
h) "Reserve Bank" means the Reserve Bank of India constituted under subsection (1) of section 3 of the Reserve Bank of India Act, 1934 (No.2 of 1934);
i) "revenue deficit" means the difference between revenue expenditure and revenue receipts of the State Government;
j) "total liabilities" means the liabilities under the Consolidated Fund of the State and the Public Account of the State and includes risk weighted guarantee obligations of the State Government where the principal and/ or interest are to be serviced out of the State budget;
3. The State Government shall:
Fiscal Management Objectives.
(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 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 Fiscal Management management principles, namely: - Principles
(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 scrutinise the conduct of fiscal policy and the state of public finances;
(b) stability and predictability in fiscal policy making process;
(c) responsibility in the management of public finances, including integrity in 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.
5. The State Government shall in each financial year lay before Fiscal Policy Statements the Legislature, the following to be laid before the Legislature. statements of fiscal policy along with the budget, namely:-
(a) the Macro- economic Framework Statement;
(b) the Medium Term Fiscal Policy Statement; and
(c) the Fiscal Policy Strategy Statement.
6. The Macro-economic Framework Statement, in such form as Macro-economic Framework Statement may be prescribed and it 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.