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THE MADHYA PRADESH RAJKOSHIYA UTTARDAYITVA AVAM BUDGET PRABANDHAN NIYAM, 2006

THE MADHYA PRADESH RAJKOSHIYA UTTARDAYITVA AVAM BUDGET PRABANDHAN NIYAM, 2006

THE MADHYA PRADESH RAJKOSHIYA UTTARDAYITVA AVAM BUDGET PRABANDHAN NIYAM, 2006

THE MADHYA PRADESH RAJKOSHIYA UTTARDAYITVA AVAM BUDGET PRABANDHAN NIYAM, 2006[1]

PREAMBLE

In exercise of the powers conferred by sub-section (1) and sub-section (2) of Section 12 of the Madhya Pradesh Rajkoshiya Uttardayitva Avam Budget Prabandhan Adhiniyam, 2005 (No. 18 of 2005), the State Government hereby makes the following rules, namely :

Rule - 1. Short title and commencement.

(1)     These rules may be called the Madhya Pradesh Rajkoshiya Uttardayitva Avam Budget Prabandhan Niyam, 2006.

(2)     They shall come into force with effect from the date of its publication in the Madhya Pradesh Gazette.

Rule - 2. Definitions.

(1)     In these rules, unless the context otherwise requires :

(a)      "Act" means the Madhya Pradesh Rajkoshiya Uttardayitva Avam Budget Prabandhan Adhiniyam, 2005 (No. 18 of 2005);

(b)      "Form" means a form appended to these rules;

(c)      "Section" means a section of the Act;

(d)      "Previous Year" means the financial year preceding of the current year;

(e)      "State Government" means the Government of Madhya Pradesh.

(2)     Words and expressions used herein but not defined and defined in the Act shall have the same meanings as assigned to them in the Act.

Rule - 3. Macroeconomic Framework Statement.

The Macroeconomic Framework Statement as required under Section 6, shall be in Form F-1.

Rule - 4. Medium Term Fiscal Policy Statement.

(1)     The Medium Term Fiscal Policy Statement, as required under sub-section (1) of Section 7, shall be in Form F-2 which shall include five year rolling targets in respect of the following fiscal indicators :

(a)      revenue deficit as a percentage of GSDP;

(b)      fiscal deficit as a percentage of GSDP;

(c)      outstanding total liabilities as a percentage of GSDP.

(2)     The Medium Term Fiscal Policy Statement shall also explain the assumptions underlying the above mentioned targets for fiscal indicators and an assessment of sustainability relating to the items indicated in sub-section (2) of Section 7 of the Act.

Rule - 5. Fiscal Policy Strategy Statement.

(1)     The Fiscal Policy Strategy Statement as required under Section 8 shall be in Form F-3.

Rule - 6. Guarantee.

The total revenue receipts mentioned in clause (d) of sub-section (2) of Section 9 of the Act shall not include any receipt, which is transitory in nature.

Rule - 7. Disclosures.

(1)     The State Government shall, at the time of presenting the budget, make disclosures as required under Section 10 of the Act in the following statements, namely :

(a)      a statement of select indicators of fiscal situation in Form F-4;

(b)      a statement on components of State Government liabilities and interest cost of borrowings/mobilisation of deposits in Form F-5;

(c)      a statement on the Consolidated Sinking Fund in Form F-6;

(d)      a statement on guarantees given by the Government in Form F-7;

(e)      a statement on the Guarantee Redemption Fund in Form F-8;

(f)       a statement of financial assets in Form F-9;

(g)      a statement on claims and commitments made by the State Government on revenue demands raised but not realised in Form F-10;

(h)     a statement on the details of number of employees in the State Government, State Public Sector Undertakings and State aided institution and related salaries in Form F-11.

(2)     The provisions of sub-rule (1) shall be complied with not later than one year from the date of coming into force of the Act.

Rule - 8. Measures to enforce compliance.

In case the outcome of the half-yearly reviews of trends in receipts and expenditure, at the end of the second quarter of any financial year shows that:

(i)       the total non-debt receipts are less than 10 per cent of Budget Estimates for that period; or

(ii)      the fiscal definite is higher than the Budget Estimates for that year by 10 per cent; or

(iii)     the revenue deficit is higher than the Budget Estimates for that year by 10 per cent; then;

(a)      the State Government shall take appropriate measures as required under sub-section (2) of Section 11; and

(b)      as required under clause (b) of sub-section (3) of Section 11 of the Act, the Minister-in-charge of the Ministry of Finance shall make a statement immediately following the end of the second quarter detailing the corrective measures taken and the prospects for the fiscal deficit of that financial years.

Rule - 9. Review.

A review of the compliance of the provisions of these rules shall be done once in two years by an agency to be appointed by the State Government and such reviews shall be laid on the table of State Legislature.



[1] Vide Notification No. 29 F-15-6/2005-IV-B-EPAU, dated 30-1-2006. Published in the M.P. Rajpatra (Asadharan), dated 30-1-2006, at pp. 98 (10-20).