(1) The State Government may prescribe such targets as may be Fiscal Targets deemed necessary for giving effect to the fiscal management objectives.
(2) In particular and without prejudice to the generality of the foregoing provisions, the State Government shall, -
(a) reduce revenue deficit in each financial year so as to eliminate it by 31st March 2009 and generate revenue surplus thereafter;
(b) reduce fiscal deficit in each financial year so as to bring it down to not more than 3.0 per cent of GSDP by 31st March 2009.
(c) ensure within a period of 10 years, that is as on the 31st day of March 2015, total liabilities do not exceed 40 per cent of the estimated GSDP for that year;
(d) limit the annual incremental guarantees so as to ensure that the total guarantees do not exceed 80 per cent of the total revenue receipt in the year preceding the current year:
Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section due to ground or grounds of shortfall in the central tax devolutions in relation to the budgetary estimates of the Union of India and/or unforeseen demands on the finances of the State Government 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 Legislature as contained in section 11.