Manipur act 011 of 2005 : Manipur Fiscal Responsibility and Budget Management Act, 2005

MANIPUR

.

.

- .... ^?

E?X,TRA o's DIN A^R·v.

P...,UBLISHEQ^BY

AUTJIQ,f(JTY.

• .•

.

,1·:

-'

.....

No. ¹²⁷Iinpifal; Monday, A?gust

8, 2005

cs'ra^vana

.

17,

1927)

GOVERNMENT OF MANIPUR

..

:?

SECRETARIAT: ^{LAW &}LEGISLATIVE AFFAIRS DEPARTMENT

NOTIFICATION

.Jmphal, ^the8th

August, ²⁰⁰⁵ ·

No.

2/36/2005-Leg/L.-The

following.

Act of^the

Legislature ^of

Manipur

"'Jlicb received assent^ofthe

Governor ^of

Manipur on ^.3Q..7-2()05 ^is

hereby published ^inthe -

official

Gazette.

THE

MAN1PUR ^-FISCAL

RESPONSIBILITY

AND BUDGET

-MANAGEMENT ACT,

2005.

(Manipur ^{ActNo. 11of}

2005)

An

Act

J«J ^·

pr?.vjde Jor

t:lie

responsibility ^{of the}State

Govetn_n1ent to' ensure

prudence in fiscal

management ^and

fiscal

s:taoility.

by ^·

achieving, . ?ufficie}lt

revenue

11 :trpih',, r?d-uctionⁱⁿfiscal·deficit,

prudent^debt

management

consistent ^with _

.. ,: fiwal··&u1tairiability;- greater

transparency'

in ff?caf:opJratiorts of

the

Govern- ment and conduct

of

·fiscal

policy

in ?, medhnh temi

fi??

framework and for matters connected

th?gwjt,b1.or:incide2'lal

thoreto.'' ^{•··. •:}

'

::·. o)lt ^{'1it en?}

"': the

Lei:islatut•-of Ma_riip.li-f,; th?,Jj{t_y''?{?t9^{Yearof the} Republic ^ofIt:i'dia":as:·f6lt6*s'if.....:.^· .' '

· ^·:;:•.'

k_,,,

,,Ju.·.,^...-.1..

1

2

l.

Short

title,

extent and ctt1 ('ent.--(1)This Act may be called the

Manipur

Fiscal

Responsibility /aii ·., daet

Management

Act, 2005?

3'f?1Gl?\?le 9-tth?,L?tate gN1tl?r

-:?,JV! -

·. ?{ >

i;;?):·>1.f.ij_

(3) ^It

shall come into

force ;?3'? date as the State

Government may, by

notification^intheofficiaf'di?etto, appoint ^{in this}behalf.

2.

Definitions.-4in;hliis

!':,\c\,?nlesf\lie:O.&?t?i'folherwiserequires- ··--::^..

_:•:!.:_:.,-.")?<:^·.·\. '

..

!..

!!..

.

?

.

.:

-?

7-&t

(a) "budget"

·rh?Aiis'·the ^·

Annual ^.

Fioal'lcial Statement^laidbefore ^the +State

legislattrre

under··

Article

·20r of"

the··

Constifiition;;:"":

-????-·- ^·--

• •

• • ? ^'.

-,

•

• • 'J •• (b)

ncurtent

·year''

means"^theffnancial year '

preceding ^the

ensuing y?ar; .·

>

-:: .::

. ;. :-. ?-- -- ..,,; .·. (c)

"ensuing

year"

moans^thefinancial year^for

which ^the

budset ^is being

presented; (d)

"financial

year"

means^theyear beginning

on^{the 1st}

April ^and ending ^on31stMarch^next

following; (e)

''fiscal· deficit" means^theexcess^of

total disbursements from the

..

·

·

Consolidated Fund of the

State

(excluding repayment

..

of.

debt)

. , •

.

,- ?- I.'.

"f' over the sum of revenue

receipts, recovery

of

loans

and non-debt capital

receipts ^{intothe 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. ^,ineither 'absolutes (in Rupee crores) or as

proportions

to the Gross

Domestic Product or other

magnitudes

for the

fisca! indicators;

(h) "guarantees" means^theliabilities

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 ^therules^madeunder^thi!

Act;

•

i

:. "-

,. _,

V^·

(j) ''previous year" ?eans^·the

year preceding the current ?yea.-;·'

... ^.

.

.

? .. -

:

....

·\1d ·

"revenu,i .deficir" means

..

!he

amount^ofexcess ^{· of}revenue

:expendi-

,..

Jure ov?r. revenue

·;cceiptsin.^ajwap?ial year; ^'.rr -

.. .? ^..,....4.

. '

'•

.

::

.

..;.

(1)

"State" means^the

State^of

Manipur; (m)

"State's. ^{Own Tax}

Revenue"

means^?h?,

total, ^?r?aQa^pf;jJ(o · '

State

elcludi?g the 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_siDJgrants an? ???te:?sµ,re ^.of

CCllt!•lt?es);i. ,

•• _::::;,i.>D"l {'o>?-·?otlll-

liabilities" means^thesumofthe

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?

;.

(a) ^'.:take

appropriate

.

measures to remain r?verl'fie .;fj<>sitivo anti ')build up: adequate revenudurplus ^andcontain flie:ftscaHi?ficit>tt^a-s,?. nable

level, ^andutilize such

surplus

for

discharging-

'the' HabilitiCJ .in

excess^{of the}a$1ic,ts ^orfor

funding. capit?l- expenditure;

. ,....... . ,,

... ,....

..·, .

(b) pursue policies ^toraise non-tax revenue^with

regard ^tocost

recovery and

equity ; and

(c) lay ^downnorms^for

prioritization ^of

capital expenditure, ^andpursue expenditure policies ^thatwould provide iniP.?tus^foreconomic growth.

4.

Piscal.imanagement principles.c-The

State. Government. shall^be

guided i,y ^the

f'Qilowing^.fiscal

management principles,

namely..:- ^..,..."--.; '

-(a} ?transparoncr in

-setting

the ·fiscal

policy "Objectivcs?-'"th"tt·;implemon-- tation or

public

policy

and:

the

publication

-of fiscaJ··information so ^asto enable

the

public

to· scrutinize tfie condtictJ of fiscal policy ^andthe

state^of

public

finances; (b)"

stability"

.

and predictability^..

ii 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.tegfity m·'budgel foniulatioi:i;'. '

..

,; . ?--·./• (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. -

.

_,. '. ^{- -?}'·· tions; ^and

, ^...

,

(e)

efficiency ^inthe

design ^and

implementation ^{ofthe fi?}

policy

.

'

and in

managing

the ·assets ind'

liabilities''' ar the ptlblicsector balance

sheef. ..:_._,J.- ... ·- __

-

Fiscal'

1t0licy_ stat-cmcn.t _

to

.

be

laid before. ·the··,

Le:gislatitre.-The

State -Oovehmlent :shall,

;Ul

e_ach,^!

,1inancial _y

before

!}m1.,..-Hoo?

of^theState .Legislature. ^the ·

fQllowillg

.

statements of

fiscal

poljcy _

aJong_ ^withthoannual ·budiet. ·namely:-:-

:

· · ·

· · -?· ·

· · · ·

· · · .. ^{- .,...} (a)

Medium-term Fiscal

?9,li<:Y^·•Statement^;and (b)

Fiscal

Policy·

Sftatety

Statement.

n

:?' Medium

T?dn ^•

'pJfcal Pbiicy'Sr:ate?ent'...:::(t). 11':fir?M?him

tlrm Fiscal ?

S'tate1nent

sbaI'l^setfortii' ^{insuch forin as may be'}

p?scribed, ^thefiscal management objectives

of^the'State; G'overiiiheaii··· an'd

:three-y?ar·olling targets for'

?e

Fe•cribed·

fiscal fodica1oi51' ^witkdim·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 ^ofsustain- -#ility relating

·

t-o ^:?

.

,

.

(a) ^·thebalance' between revenue· receipts ^andrevenue

expenditure;

.

(b)

the use

.

of

?apital receipts in?ludi?J.?borrowings

..

for

.

1cnerating. productive

assets; · ^·

' ^'

(^{c) the}estimated

yearly

pension liJ,bilities

worked^outonactuarial

basis; for the next^ten

years:

. ^.

. .

Provided ^thatin-case^it·isnot

possible ^tocak: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. · that

.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^formas

may^be

prescribed ^andshall contain,

inler alia,

(a) ^thefiscal

policies

of.

th!'

State

Government^..ffJf^the

ensuing

financial

.

year relating ^torevenuereceipts, expenditure, borrowings ^andother liabilities. lending, investments,

other

contfogent

iiabilities,^user

.

tharges on publicgdods/iitmtfes and

description:

cif otl:ier

activitica,

.

such as ^.

guarantees

artd ;activities of p"llblksecfor uhdertakings

which have

potential

budgetary implicationa;

..

-··

.

(b) ^the

strategic

_:pr.i.ori?jes f ^the.S,?at? Oovernmfnt ^{lD the}fiscal^area for ^the

ensuing

financial year; ·

(c) ^{the key}

fiscal measures^{and the}rationale^foranymajor deviation

.

.

, im. 'fiscal

measures

pertaioiog

to re:9crwo::toeeipts. ·stulf;icly.. ,t.tpe,idituro •. .. ,-,boc,towiligs·1and

cba:r-,ges

oa ptiblic ·:gt>O'ds/•llilitiea:;·•and,, , ·

. .

•

.

.

' : ? - : . : ..

' -- I

j

·; .- ••••

I ,,t

. ^.

.

.

.

f '(d) ^-anev?tuatio? bribe current policies or'tht's1aie·9?v,«r11mint ,Y!f??Jis the fiscal

management principles ^setoutin section'

,4;· t'he''fiacal objectivei^{\et• out}:iri'^the?etliurif'T?rm

'Pii8i-f

Micyfilatement ⁱⁿ sub-section ¹of

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-^thefiscal

JI]aR?gcr:nc:pt ?b??h'?•!r_,;., ?;·^hat.?artic??;,. ?n?with?ut prcjudi?c^:·totheg?ocraiii{'^oflh?;i??egoinj Jr.ovisions,. ^the

State.

G?:wcrnm?nt, .•halb- (i)

·

itiive

··

to remain. revenue. surplus; by Jijaking

.

a.

balance

in rovcnv. .•..

·*:· ^.

"receipts ^arid

,?cnditure ^acd

build

URfurt?cI _su1?u?; (li)

strive.^t6

;·brini ^doWi'lfi?cal'

'deficit^{to' 3 %' 'of}

lGr.ogs. State; Domestic n.1b^i,

d

..

u''c-t·', ^,:, ·

rr

,: ..... ^;. (iii)

limit ^theamount^of

outstanding Goverament

guarantee?aa

per•t?kt provisions ^ofthe

?anipur Ceiling ^onState

Government

Guarantee,

•• J

.

.

-. ^.

.

:.· ,. ^{• ' ''}

•

• ,·

!' /

/' ... , Act, 2004;

.· .

.

.

. .

.

.

·

.. .^.

- !

.

; ^.

,.-_\.-;

.

'

.

.

. ; ·, ., '

(iv) ^,

follow^'arecruitment

a?;-w,g?

policy., ⁱⁿ

·11:mann? sµ?h th,t ^tho· total·

salary ^billret•Cive ^torevenue expenditure excluding^.intcfest ' ^•

t' ^•

'".'' ,.-

.·· I payments ^andpensions ^doesnotexceed

.3?,per

cent:

-?

.

·.·

.

; '.

.

.

' ' . ;

'..

.

'. Provided ^thatrevenue surplus may ^{notbeabletobe}maintained

or/and fiscal deficit

may,?exceed ^the·limits

specified

under^thissection ^dueto

g,rpu?d ^M t;roundg ^of

unforeseen demands^onthefinances^{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 statementⁱⁱⁱ

respect ^{of the:}

ground ^or

grounds apecificdr.^{iritfie .}

first proviso

shall ^be

placed

before ^the·

House^{of. the}

Legislature, ai··soon a?;;may be? after^such

deficit amount exceeds ^the.aforesaid

targets or/ and the. revenue surplus ^isnotmaintained.

9.

Measures

for

fisca ¹

transparency.s-f ^l

) ^TheState Government shall^take ?mtable.measures^to'ensure

.

greate{ 'frans.parency)n jirf_fiscal operations ^and ?nimiz?, as_far ^·?

prJcticabi?.ⁱⁿ

.

the

pu'plic 'ii;iteres?, secrecy

in.

the

preparation of ^the

Budget. · ·'^·

(2) ^In

particular, ^and

without prejudicr;, ^tothe

geneq1lity ^ofthe

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; ^·.msuclr'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·es and·

·prllcUtes: :affeict#m,t QT! li4J!i?;''

tq·.ia???

the comput!tion ^of

p)escribe.o.

.Jisqal,

in4tGa.tor!\; ,4^i1-...^{!l . ,·i,·;} ; 7^'!·

?tsf-.dot41la nf

·edfniwi?·;'hf. W.?li.hf'I W"-JS; a?Ei·

fW,aµ,^...:had??pc?pvcr- ?rafts:•avaikxl

',of,, f1091 c:thc ·R??,a4tt?; '.Oii6'di?;,,; :,rlJ i. ,)

5

_, :>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 hast().}r?flect

suc_h liability ^asthe

borrowings^oftheState^.

.

,.. ^..

...

• •

.

·'

:.· .J• ?).

;_:.-:

'.

'·· 7· ;

' - :-·.: ..

-

'

..

, ; •.

. ..

1

•. -:

.

•.. . . . ..

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 ^tothe biiqn·,(dsthnatcs: ^and

·pla?

befor?·:;^we

? ^of,

?gisfat_wc., .•

Jhc; q-q\c<>mc ^of such reviews ⁱⁿthe next session. The

review

shall 'also

G'>Pff!W1 statemen! on _'M!Yi?pµ. il).-.?.Hgqts,^if

.ap,y. -

o:-:;t_H."i._. :'·_ ,:·?=';

•

._.: ^•. ·.·· ·

,

.... ^{, ,--?}

_

.

_ _ _

•

...

(2)

Whenever there ·

is either

shortfall

iri

revenue or 6CCSS of

expenditure o".er ^the

intra-year targets mentioned^intheFiscal

Polk:,.-=stratogy Statement Br' the rules made under' this'! Xct,>the

Stat• Oo11iftnment ahalLtilke

appropriate tii?:i.Iutes

't6t-·tricteasin1··?ehuc afid'/or

0ro1-

1iMluci:i11a the

espenditure,

including curtailment

of the sumi a;uthorized to^be

paid

and ^-

. appliod

froJD ^outofthe Consolidated ^Fund

of the State. ·-. ^.

Provided ^that

nothing

in thi5 ·

suliH1ection lihall

apply

-to the

uponditUID charged ^ontheConsolidated^{Fund ofthe}State under claus-e ^{(3) of}Article ²⁰² of the

Constitution or

any

other

eipe>ilditure,

which^is

.required ^tobe

incurred under

any

agreement

or contract/

which cannot^be,

p:oritponed ^orcunailed.

.

(3)

Any

measure

projosed

in the course of

the,

financial year a,. which may lead.^toanincrease 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 ^toneutralize ^such

increase.or^{Jossand such}statement shall^bo

placed before the House ^of

Legislature

while

socking approval ^ofRevised Estimate. _

.- (4)

The State G?v?rDIJl!mtJD?Y? j( c::l?r? so,

set

up an

agency

or

body i?d,ep??dent^of·

Jh?

Stato G?v9rn'lll??t..?. rcyjew ^the

compljarico ^{of - the} provisions

ofthis^Actandtable

such· reviews^in·\theHouse^orHouses^ofth6 State

Legislature. ·

ll

..

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, ^andwithout

prejudice ^tothe

gcneraHty'

()f-thc

fcdlbint power, .such rulea^mayprqviJjo.

fur? Off4D:Y ·pf?·

foUqwi?

m!JJtei;?,inameJy- (tt ^{' thefomt · of M}

edi,trn ^·

1'erm Fiscal

Policy

Sllatimlent. imludin^Ithe

targets for ^thefiscal

paramekin,'-

under -tioa

"o; th? form of ^theFiscal

Policy Sttategy ^..Statement

ulldor.sq:,tion

7;

7

'(d) ^thomoasurcs^toenforce

compliance ;

(c) ^themanner^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,

12.

Rules to bo laid

before the State

Legislature.-Evcry

rule

made under thii Act shall be

laid,

as soon as

may be

after it is

made,

before the House of the State

Legislature,

while it i• in

session,

for a total

period

or not leu than fourteen

days

which may be

comprised

in one session or in two successive -icssioas ^and

if,

before the

expiry

of session

immediately following

the session oc the succession sessions

aforesaid,

the

House agrees in

making any modifica- tion in the ^ruleor the

House agrees that the rule should not be

made,

the ru1e

shall thereafter have

effect

only

in such

modified form or be of no

effect, as the case

may be; so, however,

that any such

modification or annulment shall be without

prejudice

to the

validity

of

anything previously

done under that rule.

13.

Application

of other laws not barred.-The

provision

o( this Act shall be in

addition

to,

and not in

derogation

of,

the

provisions

of any other law for the time

being

in

force.

14.

Power to remove

di:fficulties.-(1)

If any difficulty

arises in

giving

effect to tho

provisions

of

this

Act,

the

State

Government may, by

order

published in

the

Official

Gazette,

make such

provisions

not inconsistent with the

provisions of this Act as

may

appear

to be necessary for

removing

the-difficulty; Provided that no order shall

be made

under this section after

the

expiry -0f two

years from the commencement of this Act.

(2)

Every

order^made

under^thissection shall^be

laid, as

soon as

may be

after it ia

made,

before the House

of the

State

Legislature.

A.

SUKUMAR

SINGH,

Secretary (Law),

Govt. ^of

Manipur. Printed ^atthoDirectorate ^of

Pta, ^&

Sty..

Govt.^of

Manipur/30S-C/8-8-200S.