4. (1) The State Government shall be guided by the following fiscal management principles-
(a) to maintain Government debt at predent levels;
(b) to manage guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities;
(c) to ensure that policy decisions of the Government have due regard to their financial implication on future generation;
(d) to ensure that borrowings are used on development activities, which are evaluated to become self-sustained, and creation or augmentation of capital assets, and are not applied to finance current expenditure ;
(e) to manage guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities;
(f) to ensure that policy decisions of the Government have due regard to their financial implication on future generation;
(g) to ensure that borrowings are used on development activities, which are evaluated to become self-sustained, and creation or augmentation of capital assets, and are not applied to finance current expenditure ;
(h) to ensure a reasonable degree of stability and predictability in the level of tax burden;
(i) to maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions;
(j) to pursue tax policies with due regard to economic efficiency and compliance costs;
(k) to pursue non-tax revenue policies with due regard to cost recovery and equity;
(l) to pursue expenditure policies that would provide impetus to economic growth, poverty reduction and improvement in human welfare;
(m) to build up a revenue surplus for use in capital formation and productive expenditure;
(n) to ensure that physical assets of the Government are properly maintained;
(o) to disclose sufficient information to allow the public to scrutinize the conduct of fiscal policy and the state of public finance;
(p) to ensure that Government uses resources in ways that give best value for money and also ensure that public assets are put to best possible use;
(q) to minimize fiscal risks associated with running of public sector undertakings and utilities providing public goods and services;
(r) to manage expenditure consistent with the level of revenue generated;
(s) to formulate budget in realistic and objective manner with due regard to the general economic outlook and revenue prospects and minimize deviations during the course of the year;
(t) to ensure discharge of current liabilities in a timely manner.
(2) The State Government shall take appropriate measures to eliminate the revenue deficit and control the fiscal deficit at sustainable level and build up adequate revenue surplus.
(3) In particular, and without prejudice to the generality of the foregoing provisions the State Government shall -
[(a) reduce revenue deficit to nil by the end of the fiscal year 2011-12.And maintain revenue blance or attain a surplus thereafter ]
(b) reduce revenue deficit as percentage of Gross State Domestic Product in each of the financial years referred to in clause (a) in a manner consistent with the goal set out in clause (a);
[(c) maintain fiscal deficit at not more than three percent of the estimated Gross State Domestic Product in each of the Years 2026- 2027, 2027-2028, 2028-2029, 2029-2030 and 2030-2031;]
[(d) reduce fiscal deficit as percentage of Gross State Domestic Product in each of the financial years referred to in clause (c) in a manner consistent with the goal set out in that clause. ]
(e) not to give guarantee for any amount exceeding the limit stipulated under any rule or law of the State Government existing at the time of the coming into force of this Act or any rule or law to be made by the State Government subsequent to coming into force of this Act:
[(f) ensure that the total debt stock is maintained at not more than 30 percent of the estimated Gross State Domestic Product at the end of the Years 2026-2027, 2027-2028, 2028-2029, 2029-2030 and 2030-2031 respectively;]
[(g) Provide for at least 70 percent of budget provision for capital works for the ongoing capital works and not more than 30 percent for the new capital works in the annual budget provision of various departments.]