(1) The State Government shall lay, in each financial year, before both Houses of the State Legislature the following statements of fiscal policy alongwith the annual financial statement and demands for grants, namely:-
(a) the Medium-term Fiscal Policy Statement,
(b) the Fiscal Policy Strategy Statement.
(2) The Medium-term Fiscal Policy Statement shall set forth a three year rolling target for prescribed fiscal indicators with specification of underlying assumptions.
(3) In particular and without prejudice to the provisions contained in sub-section (2), the Medium-term Fiscal Policy Statement shall include an assessment of sustainability relating to,-
(i) the balance between revenue receipts and revenue expenditures;
(ii) the use of capital receipts for generating productive assets.
(4) The Fiscal Policy Strategy Statement shall, inter-alia, contain,-
(a) the policies of the State Government for the ensuing financial year relating to taxation, expenditure, borrowings and other liabilities, lending and investments, description of other activities such as underwriting and guarantees which have potential budgetary and fiscal implications;
(b) the strategic priorities of the State Government for the ensuing financial year in the fiscal area;
(c) the key fiscal policies and rationale for any major deviation in fiscal measures pertaining to taxation and expenditure;
(d) an evaluation as to be how the current policies of the State Government are in conformity with the fiscal management principles set out in section 5 and the objectives set out in the Medium-term Fiscal Policy Statement.
(5) The Medium-term Fiscal Policy Statement and the Fiscal Policy Strategy Statement referred to in sub-section (1) shall be in such form as may be prescribed.