4in;hliis !':,\c\,?nlesf\lie:O.&?t?i'folherwiserequires- ··--::.. _:•:!.:_:.,-.")?<:·.·\ .
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(a) "budget" ·rh?Aiis'·the · Annual . Fioal'lcial Statement laid before the +State legislattrre under·· Article ·20r of" the·· Constifiition;;:"": -????-·- ·-- • • • • ? '. -, • • • 'J ••
(b) ncurtent ·year'' means" the ffnancial year ' preceding the ensuing y?ar;
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(c) "ensuing year" moans the financial year for which the budset is being presented;
(d) "financial year" means the year beginning on the 1st April and ending on 31st March next following;
(e) ''fiscal· deficit" means the excess of total disbursements from the ..
· · Consolidated Fund of the State (excluding repayment ..
of. debt) . , • .
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"f' over the sum of revenue receipts, recovery of loans and non-debt capital receipts into the Fund during a financial year;
(0 "fiscal indicators" means such indicators as may be prescribed for evaluation of the fiscal position of the State Government;
(g). "fiscal targets'' means the numerical ceilings prescribed. ,in either 'absolutes (in Rupeecrores)or as proportions to the Gross Domestic Product or other magnitudes for the fisca! indicators;
(h) "guarantees" means the liabilities undertaken by State Public Sector Undertakings where servicing and repayment liabilities fall on the State Government iu the event of default by the primary borrower;
(i) "prescribed'' means prescribed by the rules made under thi! Act;
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(j) ''previous year" ?eans ·the year preceding the current ?yea.-;·' ...
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·\1d · "revenu,i.deficir" means ..
!he amount of excess · of revenue :expendi- ,..
Jure ov?r. revenue ·;cceiptsin. a jwap?ial year; ' .r r - .. .? ..
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(1) "State" means the State of Manipur;
(m) "State's. Own Tax Revenue" means ?h?, total, ? r?aQa pf ;jJ(o · ' State elcludi?gthe State's Share in. (;?t;?l '.I'a;o.?;. .· .
.J . ; ,/i 3 . --<?) -"?tl\h revenue receipts" .means the S?te's ow,a rev?? r?ipta .
(both tax and non-ta?)'and -?u'rr?nt transf?rs fro; .,b(J ?
_ ., (comp_ri_siDJgrantsan? ???te:?sµ,re .of CCllt!•lt?es);i.
, •• _::::;,i.>D"l {'o>?-·?otlll- liabilities" means the sum of the Iiabilitiea.uader the C?molidan ed Fund of the State, and tho Public Account of the: iSJato.;?,:
j? -fiscaf .-in?nagetncntobjectives.c-, The State Government ihall?
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(a) '.:take appropriate . measures to remain r?verl'fie.;fj<>sitivoanti ')build up: adequate revenudurplus and contain flie:ftscaHi?ficit>tt a- s,?.
nable level, and utilize such surplus for discharging- 'the' HabilitiCJ .in excess of the a$1ic,ts or for funding. capit?l- expenditure;
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(b) pursue policies to raise non-tax revenue with regard to cost recovery and equity ; and
(c) lay down norms for prioritization of capital expenditure, and pursue expenditure policies that would provide iniP.?tusfor economic growth.
4. Piscal.imanagement principles.c-The State. Government. shall be guided i,y the f'Qilowing .
fiscal management principles, namely..:- .. , ... " -- .;
' -(a} ?transparoncrin -setting the ·fiscal policy "Objectivcs?-'"th"tt·;implemon- tation or public policy and: the publication -of fiscaJ··information so as to enable the public to· scrutinize tfie condtictJ of fiscal policy and the state of public finances;
(b)" stability" .
and predictability.. iii liscal pofify· mak1ng-? p'r?s .a?d.in - .. the way the fiscal P?licy impacts the economy; .:.
(c) --- r'e:fponsioility-' "in' - the management of. 'piiblic 'firiances/ including -· ': ·fo.tegfitym·'budgel foniulatioi:i;'.
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?--·./• (d/'rairne?to- ensure th,?f-p??\?/d?ci?1??-?f,''t1i?"sta?eGovernment v-': ha?e . d?e-regarl to .
ilieii-'--ti?ncfal'-i?-plic?tio?;on ·_futuregenera- • • • ,I ...... •.: ' • ....i , •• • '. ;. ·. ,.,, ..:. •. J. - .
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(e) efficiency in the design and implementation of the fi? policy . ' and in managing the ·assets ind' liabilities''' ar the ptlblicsector balance sheef.
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be laid before. ·the··, Le:gislatitre.-The State -Oovehmlent :shall, ;Ul e_ach,! ,1inancial _y<!a,r?- lay before !}m1.,..-Hoo? of the State .Legislature. the · fQllowillg .
statements of fiscal poljcy _ aJong_ with tho annual ·budiet. ·namely:-:- :
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(a) Medium-term Fiscal ?9,li<:Y·•Statement ; and
(b) Fiscal Policy· Sftatety Statement.
n :?' Medium T?dn • 'pJfcalPbiicy'Sr:ate?ent'...:::(t).11':fir?M?him tlrm Fiscal ? S'tate1nent sbaI'l set fortii' in such f orin as may be' p?scribed, the fiscal management objectives of the 'State; G'overiiiheaii··· an'd :three-y?ar·rolling targets for' ?e Fe•cribed· fiscal fodica1oi51' witk dim· onunoilitidn of' ·tl\e' ,,.ndcrlying assumptions. '. ,
(2) X.. partic.war and .
without. p_rejudjf,C_)P fM, ;P,f.?vj.,i.Qns-9,P!!tai? in ?g?ion (1,), the Me4ium T?on Pis?l P,91icy ..
?W.QlC.Ilt. ll\lall ?cludo tho v?jous c!,Ss?mpt?o? ??ind · tile fiscal i:ncH?tors ? an ?St:Dcnt of sustain- -#ilityrelating · t-o :?
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(a) ·the balance' between revenue· receipts and revenue expenditure;
. (b) the use .
of ?apital receipts in?ludi?J.?borrowings ..
for .
1cnerating.
productive assets;
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(c) the estimated yearly pension liJ,bilities worked out on actuarial basis;
for the next ten years:
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Provided that in -case it ·is not possible to cak:niatc the pension liabilities on. actuarial basis during :the ·period of nrst thRo-yoaa :aft« .
the coming into fosce qf this Act, the Sta-te Go;v,?t ?y. during.
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period, estimete the .pension liabjJities -by ?1c,ing forecasts on tho ?s? pf tread jl':011.(tb.rJ!tes.
7. Fiscal policy strategy statement.s-The Fiscal Policy .Stni,tcgy Statement iball be in such form as may be prescribed and shall contain, inler alia,
(a) the fiscal policies of. th!' State Government .
.ffJfthe ensuing financial .
year relating to revenuereceipts, expenditure,borrowings and other liabilities. lending, investments, other contfogent iiabilities, user . tharges on publicgdods/iitmtfesand description: cif otl:ier activitica, .
such as . guarantees artd ;activities of p"llblksecforuhdertakings which have potential budgetary implicationa;
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(b) the strategic _:pr.i.ori?jes?f the .
S,?at?Oovernmfnt lD the fiscal area for the ensuing financial year;
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(c) the key fiscal measures and the rationale for any major deviation .
. , im. 'fiscal measures pertaioiog to re:9crwo::toeeipts. ·stulf;icly.. ,t.tpe,idituro •.
.. ,-,boc,towiligs·1and<user cba:r-,ges oa ptiblic ·:gt>O'ds/•llilitiea:;·•and,,, · . .
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f '(d) -an ev?tuatio?bribe current policiesor'tht's1aie·9?v,«r11mint,Y!f??Jis the fiscal management principles set out in section' ,4;· t'he''fiacal objectivei\et• out :iri' the ?etliurif'T?rm 'Pii8i-f Micyfilatement in sub-section 1 of section 6 'anti rftsil?al" targets'' sct·0111 in; section I.
f· :: 1?:· Fid"•·ta,o,t, . .-.(?) llhtr.State Ge.vcl'Q·D¥JDt Jn?Y }?tcscrjbe: auchtarscta u may· be 'dee'me1 .. neces?ary for giving effect ,ta- the fiscal JI]aR?gcr:nc:pt ?b??h'?•!r_,;., ?;·hat.?artic??;,.?n?with?ut prcjudi?c:·to the g?ocraiii{'of l h?;i??egoinj Jr.ovisions,. the State. G?:wcrnm?nt,.•halb-
(i) · itiive ·· to remain. revenue. surplus; by Jijaking .
a. balance in rovcnv.
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"receipts arid ,?cnditure acd build URfurt?cI _su1?u?;
(li) strive. t6 ;·brini do Wi'l fi?cal' 'deficit to' 3 %' 'of lGr.ogs. State; Domestic n.1bi, d ..
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(iii) limit the amount of outstanding Goverament guarantee?aa per•t?kt provisions of the ?anipur Ceiling on State Government Guarantee, •• J .
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(iv) , follow 'a recruitment a?;-w,g? policy., in ·11:mann? sµ?h th,t tho· total· salary bill ret•Cive to revenue expenditure excluding .
intcfest ' • t' • '".'' ,.- .·· I payments and pensions does not exceed .3?,per cent:
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Provided that revenue surplus may not be able to be maintained or/and fiscal deficit may,?exceed the ·limits specified under this section due to g,rpu?d M t;roundg of unforeseen demands on the finances of the Sta?c;,:Government arising out· of national .security or· namral calamity .,i,ncludiog famine ·relief tr such other exceptional circumstances, beyond the control. of the State. Government
Provided further· tha'i a statement iii respect of the: ground or grounds apecificdr.iri tfie .
first proviso shall be placed before the· House of. the Legislature, ai··soon a?;;maybe?after such deficit amount exceeds the. aforesaid targets or/ and the. revenue surplus is not maintained.
9. Measures for fisca 1 transparency.s-f l ) The State Government shall take ?mtable.measuresto 'ensure .
greate{'frans.parency)n jirf_fiscaloperations and ?nimiz?, as_far ·? prJcticabi?.in .
the pu'plic'ii;iteres?,secrecy in. the preparation of the Budget.
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(2) In particular, and without prejudicr;, to the geneq1lity of the foregoing pr?visi?n/tilt ?cifo 'Government iiia1l, at toetime ?:p?tnt10n:ofthe Midget, rl?:i'ite<'(J1scfo?reS'·b'ii · the' ·_following ·. afong·\vit'b detailed information; ·.m suclr'form -"i·?·,1be· ;pr?s,ct?t7d:,.•< ' , , : · .
;;_ · ., .ifrr ·.d .•• ?L::,:i,,T , , · -·.''·rru,H(a)'.!liif£1cals?of l:dtia-hge,1 ftlei, ?griificaii.(·chlln?-.:1 it\'1;1 tbthaecounting ! :,1'. 1oiiadtlairds;iq:1C!JJici·esand· ·prllcUtes::affeict#m,t QT! li4J!i?;'' tq·.ia??? the comput!tion of p)escribe.o. .Jisqal, in4tGa.tor!\; ,4 i 1 -. .. !l .
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; 7 '!· ?tsf-.dot41lanf ·edfniwi?·;'hf. W.?li.hf'IW"-JS; a?Ei· fW,aµ, ... :had??pc?pvcr ?rafts:•avaikxl ',of,, f1091 c:thc ·R??,a4tt?; '.Oii6'di?;,,; :,rlJ i. ,) _, :>i.. t.l{J}'?hVltebcvi!?·· tne State: ·Oo,vernnreht 1.1Hdw.tak«.S•'9 _ , ?Tl ditiGMlly_1i and subUadtfillyrepay"tfie · principal ·it?unt· and/or pay the interQSt of aj.Ytff??
tfp.l_?nt#y,it has t(). r?flect suc_hliability as the borrowingsof the State .
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10. Measures to enforce compliance:::..:c1y'T6c 'Minister-in ehar? tif,, lftt ?p!tifirieht'.·bf · Finance (hereinaftef'rcferr.od··.to: as. Miaiqoro0fr1Pinit'1ce) shall review. every ·i1llk1for,the 'ttonds 'In; receipts ada ?rilllitue,,Jtt.•:;l!elation to the biiqn·,(dsthnatcs: and ·pla? befor?·:; we ? of, ?gisfat_wc., .• Jhc; q-q\c<>mc of such reviews in the next session. The review shall 'also G'>Pff!W1 statemen! on _'M!Yi?pµ.il).-.?.Hgqts,if .ap,y.
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_ _ _ • ... (2) Whenever there · is either shortfall iri revenue or 6CCSS of expenditure o".er the intra-year targets mentioned in the Fiscal Polk:,.-=stratogyStatement Br' the rules made under' this'! Xct,>the Stat• Oo11iftnment ahalLtilke appropriate tii?:i.Iutes 't6t-·tricteasin1··?ehuc afid'/or 0ro1- 1iMluci:i11athe espenditure, including curtailment of the sumi a;uthorized to be paid and - . appliod froJD out of the Consolidated Fund of the State.
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Provided that nothing in thi5 · suliH1ection lihall apply -to the uponditUID charged on the Consolidated Fund of the State under claus-e (3) of Article 202 of the Constitution or any other eipe>ilditure, which is .required to be incurred under any agreement or contract/ which cannot be, p:oritponed or cunailed.
. (3) Any measure projosed in the course of the, financial year a,.
which may lead. to an increase in fCV¢nue deficit, either t}J.rouah increased CfJ>COOitun:
or loss of revenue, shall be aecompanied by a statement of remedial measures, proposed to neutralize such increase.or Joss and such statement shall bo placed before the House of Legislature while socking approval of Revised Estimate.
_ .- (4) The State G?v?rDIJl!mtJD?Y? j( c::l?r? so, set up an agency or body i?d,ep??dentof· Jh? Stato G?v9rn'lll??t..?. rcyjew the compljarico of - the provisions ofthis Act and table such· reviews in·\ the House or Houses of th6 State Legislature.
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Pcnnr to mak-c-,ml0$.-{l} The -ij?tc Oo.vi:;rnlllPQt1+li1l• ?f nofifica,tion in the Oftu=ial Gazott.,, ?ate. rule, fof ?ing Olft th,;.pro,visiQRJ 9(Uus ?!.t,
(2) In particular, and without prejudice to the gcneraHty' ()f-thc fcdlbint power, .such rulea may prqviJjo. fur? Off4D:Y ·pf?· foUqwi? m!JJtei;?,inameJy (tt ' the fomt · of M edi,trn · 1'erm Fiscal Policy Sllatimlent. imludin I the targets for the fiscal paramekin,'- under -tioa "o;
th? form of the Fiscal Policy Sttategy .. Statement ulldor.sq:,tion 7;
the f'orins ror disclosure under sub-section (2Jof IOCtioll'9;
---------- 7 '(d) tho moasurcs to enforce compliance ;
(c) the manner of review of compliance of the provisions of this Act -by the i.Ddepeadcmt agency under section 10; and
(f) any other matter which is required to be, or may be, prescribed,