The Assam Fiscal Responsibility and Budget Management Act, 2005

{
    "id": 14005,
    "slug": "the-assam-fiscal-responsibility-and-budget-management-act-2005",
    "title": "The Assam Fiscal Responsibility and Budget Management Act, 2005",
    "short_title": "The Assam Fiscal Responsibility and Budget Management Act, 2005",
    "act_number": "Assam Act No. 27 of 2005",
    "act_year": 2005,
    "act_type": "STATE",
    "location": "Assam",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "The Assam Fiscal Responsibility and Budget Management Act, 2005",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short title, extent and commencement.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definitions.",
            "chapter": null,
            "content": "(a) \"Administrative Approval\" means authority to create liability and / or incur expenditure;\n(b) \"Annual budget\" means the annual financial statement laid before the State Legislature under article 202 of the Constitution;\n(c) \"Appointing Authorities\" means officers of the State Government exercising the delegated authority of appointing persons to the posts under the State Government;\n(d) \"Current Year\" means the year preceding the year for which the budget and the Five Year Fiscal Plan (FYFP) are being presented;\n(e) \"Financial Year\" means the year beginning on the 1st April and ending on the 31st day of March of the following calendar year;\n(f) \"Fiscal Deficit\" means the excess of aggregate disbursements (net of debt repayments) from the Consolidated Fund of the State over revenue receipts, recovery of loans and non-debt capita l receipts during a financial year\n(g) \"Plan Outlay\" means the annual aggregate plan for the State for a financial year as approved by the Planning Commission of the Government of India;\n(h) \"Fiscal Indicators\" means such figures, proportions, percentages as may be prescribed, for evaluation of the fiscal position of the State Government;\n(i) \"Prescribed\" means as 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 excess of the revenue expenditure over the revenue receipts in a financial year;\n(l) \"Revenue Surplus\" means the excess of revenue receipts over the revenue expenditure;\n(m) \"Sanctioned Post\" means the posts which were created by a sanction of the State Government and has not been subsequently abolished or kept in abeyance by am order of the State Government;\n(n) \"State Government\" means the Government of Assam;\n(o) \"Finance Department\" means the Finance Department of the Government of Assam;\n(p) \"Total Liabilities\" means liabilities upon the Consolidated Fund of the State and Public Account of the State.",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. The Five Year Fiscal Plan to be laid before the Legislature..",
            "chapter": null,
            "content": "(i) balance of revenue receipt and revenue expenditure,\n(ii) the use of capital receipts including borrowings for creating productive assets.\n(a) the Medium Term Fiscal Objectives of the State Government;\n(b) an evaluation of the fiscal indicators in the previous year vis-à-vis the target set out earlier and the likely performance in the current year as per revised estimates;\n(c) a statement on recent economic trends and future prospects for growth and development affecting the fiscal position of the State Government;\n(d) the strategic priorities of the State Government in the fiscal area for the ensuing financial year;\n(e) policies of the State Government for the ensuing Financial year relating to tax and non-tax revenue, expenditure, subsidies (including grants to Public Sector Undertakings, grants-in-aid to Non- Government Organizations), borrowing and other liabilities, lending and investments, Government guarantees to Public Sector Undertakings with key fiscal measures and targets relating to each of these\n(f) an evaluation as to how the current policies of the State Government are in conformity with the fiscal management principles set out in section (4) and the fiscal objectives set out in the Five Year Fiscal Plan.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. Fiscal Management Principles.",
            "chapter": null,
            "content": "(a) manage expenditures consistent with the revenue generated;\n(b) maintain Government debt at prudent level;\n(c) manage guarantees and other contingent liabilities prudently with particular reference to the quality and level of such liabilities;\n(d) ensure that the policy decisions of the Government have due regard to the financial implications on the future generations;\n(e) ensure that the borrowings are used for productive assets and accumulation of capital assets and are not applied to finance revenue expenditures;\n(f) ensure a reasonable degree of stability and predictability in the level of tax burden;\n(g) maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions;\n(h) pursue tax policies with due regard to economic efficiency and compliance costs;\n(i) pursue non-tax policies with due regard to cost recovery and equity;\n(j) pursue expenditure policies that would provide impetus to economic growth, poverty, reduction and improvement in human welfare;\n(k) build up a revenue surplus for use in capital formation and productive expenditure;\n(l) ensure maintenance of the physical assets of the Government;\n(m) maintain transparency by disclosing sufficient information to allow public to scrutinize the state of the public finances;\n(n) ensure best possible uses of the Government resources and public assets;\n(o) minimize the fiscal risk associated with management of public sector undertakings and the utilities providing public goods and services;\n(p) ensure discharge of current liabilities in a timely manner;\n(q) formulate a realistic budget with due regard to the general economic outlook and revenue prospects and minimize deviations during the course of the year.\n[(i) eliminate revenue deficit within four financial years beginning on the first day of April, 2005 and ending on the 31st day of March, 2009;]\n(ii) reduce the revenue deficit as a percentage of Gross State Domestic Product (GSDP) in each of the Financial year beginning 1st day of April 2005, in a manner consistent with the target set out in clause (i) above;\n(iii) by the year 2010 the expenditure on account of salary and wages of the employees of the State Government will be contained within 60% of the total tax and non-tax revenue of the State Government, including devolutions from the Government of India but excluding the grants under the Annual Plan from the Planning Commission and other developmental grants;\n(iv) restrict the revenue expenditure under Annual state plan to one third of the Plan outlay in a financial year with a view to making more fund available for capital and developmental expenditures;\n[(v) Anchor fiscal deficit of the State to an annual limit of 3 percent of Gross State Domestic Product (GSDP) in any financial year.\n(i) eligible for flexibility of 0.25 percent over the borrowing limit for any  given year for which the borrowing limits are to be fixed, if their debt-GSDP ratio is less than or equal to 25 percent of the revenue receipt in the preceding year;\n(ii) eligible for an additional borrowing limit of 0.25 percent of GSDP in a given year for which the borrowing limits are to be fixed, if their debt-GSDP in given year for which the borrowing limits are to be fixed, if the interest payments are less than or equal to 10 percent of the revenue receipt in the preceding year;\n(b) The two options of flexibility provisions as mentioned in Explanation (a) above can be availed of by the State Government either separately if any of the above criteria is fulfilled or simultaneously if both the above criteria are fulfilled, to attain a maximum fiscal deficit-GSDP limit of 3.5 percent in any given year;\n(c) The flexibility in availing the additional limit under either of the two options or both as mentioned in Explanation (a) above will be available to the State Government only if there is no revenue deficit in the year in which borrowing limits are to be fixed and the immediately preceding year.]\n(vi) reduce fiscal deficit as percentage of the estimated Gross State Domestic Product in each of the financial year beginning on 1st day of April 2005, in a manner consistent with the goal set out in clause (v) above;\n(vii) restrict the total debt stock of the State Government including the Government Guarantee to 45% of the GSDP of the previous year at current prices within a period of five years beginning on the 1st day of April, 2005;\n(viii) State Government Guarantee for the loans contracted by Public Sector Undertakings, Boards, Companies, Corporations, Cooperative societies or Autonomous organizations under the State Government, shall be restricted at any point of time to fifty percent of State's own tax and non-tax revenue of the previous year or five percent of the GSDP of previous year at current prices, whichever is lower:",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Measures for Fiscal Transparency.",
            "chapter": null,
            "content": "(a) the key fiscal indicators including those mentioned in Section 4 (3);\n(b) the significant changes in the accounting standards, policies and practices likely to affect the computation of the fiscal indicators;\n(c) as far as practicable and consistent with public interest, the contingent liabilities of State Government created by way of guarantee, actual liabilities arising out of borrowings giving the outstanding amounts of principal, interest and also the outstanding liabilities in respect of works and supplies under each Department.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Measures to enforce compliance.",
            "chapter": null,
            "content": "(a) any deviation in meeting the obligation and target cast on the State Government;\n(b) whether such deviation is substantial or relates to actual or potential budgetary outcomes and how much of the deviation can be attributed to the general economic scenario;\n(c) any remedial measures the State Government proposes to take.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Measures to ensure Fiscal Discipline.",
            "chapter": null,
            "content": "(a) the State Government or the appointing authorities under it shall give appointments only against a sanctioned post which is vacant and in accordance with the laid down Rules, procedures and orders;\n(b) notwithstanding any other provision contained in any Act or Rules, no new post shall be created in any department of the State Government or in Autonomous bodies including Public Sector Undertakings, Companies, Statutory Bodies, Trusts, Societies and Cooperatives Societies, which are under the State Government, without the prior concurrence of the Finance Department;\n(c) no appointment shall be made by the State Government or the appointing authorities under it in the vacancies arising out of transfer and leave of the incumbents in these posts;\n(d) no appointment shall be made by the State Government or the appointing authorities under it, in a post in anticipation of it's falling vacant in future;\n(e) the State Government or the appointing authorities under it shall not make more than one appointment against one vacant post;\n(f) any letter of appointment to any vacant sanctioned post shall clearly indicate the identity of the post in the manner as may be prescribed;\n(g) notwithstanding any other provision contained in any Act or Rules, the select list prepared for the fresh appointments to vacant sanctioned posts shall contain names equal to the number of vacant posts notified at the time of calling for applications for filling up the posts.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Offences and Penalties.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Power to make rules.",
            "chapter": null,
            "content": "(i) The fiscal indicators to be prescribed for the purpose or sub-section (2) of section 3 and clause (a) of sub section (3) of section 5;\n(ii) The format of Five Year Fiscal Plan as referred to in sub-section (5) of section 3 and sub section (3) of section 5;\n(iii) Any other matter which is required to be, or may be, prescribed;",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Protection of action taken in good faith..",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Application of other laws not barred..",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Power to remove difficulties..",
            "chapter": null,
            "content": "[12A. Bar of jurisdiction of Civil Court.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        }
    ],
    "metadata": {
        "Act ID": "Last Updated 12th February, 2020 [ass295]",
        "Act Number": "Assam Act No. 27 of 2005",
        "Enactment Date": "",
        "Act Year": "2005",
        "Short Title": "The Assam Fiscal Responsibility and Budget Management Act, 2005",
        "Type": "STATE",
        "Location": "Assam"
    },
    "updated_at": "2026-09-29 21:55:18"
}