Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005

{
    "id": 14496,
    "slug": "andhra-pradesh-fiscal-responsibility-and-budget-management-act-2005",
    "title": "Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005",
    "short_title": "Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005",
    "act_number": "(Act No. 34 of 2005)",
    "act_year": 2005,
    "act_type": "STATE",
    "location": "Andhra Pradesh",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short title and commencement.",
            "chapter": null,
            "content": "Object & Reasons 6\nStatement of object and Reasons - (Act No. 7 of 2010).",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definitions.",
            "chapter": null,
            "content": "(a) \"budget\" means the annual financial statement laid before the House or Houses of the State Legislature under Article 202 of the Constitution:\n(b) \"current year\" means the financial year preceding the ensuing year;\n(c) \"ensuing year\" means the financial year for which the budget is being presented;\n(d) \"financial year\" means the year beginning on the 1st April and ending on 31st March next following;\n(e) \"GSDP\" means Gross State Domestic Product at current market prices;\n(f) \"fiscal deficit\" is the excess of aggregate disbursements (net of debt repayments) over revenue receipts, recovery of loans and non-debt capital receipts;\n(g) \"fiscal indicators\" are such indicators as may be prescribed for evaluation of the fiscal position of the State Government;\n(h) \"fiscal targets\" are the numerical ceilings and proportions to total revenue receipts (TRR) or GSDP for the fiscal indicators;\n(i) \"prescribed\" means prescribed by the rules made under this Act;\n(j) \"previous year\" means the year preceding the current year;\n(k) \"revenue deficit\" means the difference between revenue expenditure and total revenue receipts (TRR);\n(l) \"total liabilities\" means the liabilities under the Consolidated Fund of the State and the Public Account of the State and shall also include borrowings by the public sector undertakings and the special purpose vehicles and other equivalent instruments including guarantees where the principal and/ or interest are to be serviced out of the State budgets.",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Fiscal Management Objectives.",
            "chapter": null,
            "content": "(a) take appropriate measures to eliminate the revenue deficit and thereafter build up adequate revenue surplus and contain the fiscal deficit at a sustainable level, and utilize such surplus for discharging the liabilities in excess of the assets or for funding capital expenditure;\n(b) pursue policies to raise non-tax revenue with due regard to cost recovery and equity; and\n(c) lay down norms for prioritisation of capital expenditure, and pursue expenditure policies that would provide impetus for economic growth, poverty reduction and improvement in human welfare.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. Fiscal Management Principles.",
            "chapter": null,
            "content": "(a) transparency in setting the fiscal policy objective, the implementation of public policy and the publication of fiscal information so as to enable the public to scrutinise the conduct of fiscal policy and the state of public finances;\n(b) stability and predictability in fiscal policy making process and in the way fiscal policy impacts the economy;\n(c) responsibility in the management of police making process and in the way fiscal policy impacts the economy;\n(d) fairness to ensure that policy decisions of the State Government have due regard to their financial implications on future generations; and\n(e) efficiency in the design and implementation of the fiscal policy and in managing the assets and liabilities of the public sector balance sheet.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Fiscal Policy Statements to be laid before the Legislature.",
            "chapter": null,
            "content": "(a) the Macroeconomic Framework Statement;\n(b) the Medium Term Fiscal Policy Statement; and\n(c) the Fiscal Policy Strategy Statement.\n[(d) the statement on the number of employees in Government, Public Sector Undertakings and aided institutions and expenditure of State Government towards salaries and pensions.]",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Macroeconomic Framework Statement.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Medium Term Fiscal Policy Statement.",
            "chapter": null,
            "content": "(i) the balance between revenue receipts and revenue expenditure:\n(ii) the use of capital receipts including borrowings for generating productive assets;\n(iii) the estimated yearly pension liabilities worked out on actuarial basis for the next ten years.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Fiscal Policy Strategy Statement.",
            "chapter": null,
            "content": "(i) the fiscal policies of the State Government for the ensuing year relating to taxation, expenditure, borrowings and other liabilities (including borrowings by Public Sector Undertakings and Special Purpose Vehicle and other equivalent instruments where liability for repayment is on the State Government), lending, investments, other contingent liabilities, user charges on public goods/utilities and description of other activities, such as guarantees and activities of Public Sector Undertakings which have potential budgetary implications:\n(ii) the strategic priorities of the State Government in the fiscal area for the ensuing year;\n(iii) the key fiscal measures and the rationale for any major deviation in fiscal measures pertaining to taxation, subsidy, expenditure, borrowings and user charges on public goods/utilities: and\n(iv) an evaluation of the current policies of the State Government vis-a-vis the fiscal management principles set out in Section 4, the fiscal objectives set out in the Medium-Term Fiscal Policy Statement in sub-section (1) of Section 7 and fiscal targets set out in Section 9.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Fiscal Targets.",
            "chapter": null,
            "content": "(a) reduce revenue deficit by an amount equivalent to at least 0.32 percentage point of GSDP in each financial year, beginning from the Is' day of April 2005, so as to eliminate it by 31sl March 2009 and generate revenue surplus thereafter;\n[(b) reduce fiscal deficit by an amount equivalent to at least 0.25 percentage point of Gross State Domestic Product in each financial year beginning from the 1st day of April, 2005, so as to bring it down to not more than 3 per cent; subject to the fiscal deficit limits fixed by the Government of India from time to time:\n(c) ensure within a period of five years, beginning from the initial financial year on the 1st day of April 2005, and ending on the 31s1 day of March 2010, that the outstanding total liabilities do not exceed 35 per cent of the estimated GSDP for that year;\n(d) limit the amount of annual incremental risk weighted guarantees to 90 per cent of the TRR in the year preceding the current year:",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Measures for Fiscal Transparency.",
            "chapter": null,
            "content": "(a) the significant changes in the accounting standards, policies and practices affecting or likely to affect the computation of fiscal indicators;\n(b) details of borrowings by way of Ways and Means Advances/ Overdraft availed of from the Reserve Bank of India.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Measures to enforce compliance.",
            "chapter": null,
            "content": "(b) Where owing to unforeseen circumstances, any deviations is made in meeting the obligations cast on the State Government under this Act, the Minister of Finance shall make a statement in the House or Houses of Legislature explaining. -\n(i) any deviation in meeting the obligations cast on the State Government under this Act;\n(ii) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and\n(iii) the remedial measures the State Government proposes to take.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Protection of action taken in goodfaith.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. Application of other laws not barred.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "14",
            "title": "14. Power to remove difficulties.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "15",
            "title": "15. Power to Make Rules.",
            "chapter": null,
            "content": "(a) the form of the Macroeconomic Framework Statement under Section 6;\n(b) the form of Medium-Term Fiscal Policy Statement, including the targets for the fiscal indicators, under Section 7;\n(c) the form of Fiscal policy Strategy Statement under Section 8;\n(d) the forms of disclosure under subsection (2) of Section 10;\n(e) measures of enforce compliance;\n(f) the manner of review of compliance of the provisions of this Act by the independent agency under Section 11; and\n(g) any other matter which is required to be, or may be, prescribed.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "16",
            "title": "16. Repeal of Ordinance No. 9 of 2005.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        }
    ],
    "metadata": {
        "Act ID": "Last Updated 26th October, 2019 [ap535]",
        "Act Number": "(Act No. 34 of 2005)",
        "Enactment Date": "",
        "Act Year": "2005",
        "Short Title": "Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005",
        "Type": "STATE",
        "Location": "Andhra Pradesh"
    },
    "updated_at": "2026-09-29 21:55:18"
}