Act Number: 39

Act Name: The Fiscal Responsibility and Budget Management Act, 2003

Year: 2003

Enactment Date: 2003-08-26

Long Title: An Act to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by achieving sufficient revenue surplus and removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto.

Ministry: Ministry of Finance

Department: Department of Economic Affairs

Section 7: Measures to enforce compliance.
    (1) The Minister-in-charge of the Ministry of Finance shall review, 1[on half-yearly basis], the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.
     2[(1A) The Central Government shall prepare a monthly statement of its accounts.]
     (2) Whenever there is either shortfall in revenue or excess of expenditure over the 3[prescribed levels] during any period in a financial year, the Central Government shall take appropriate measures for increasing revenue or for reducing the expenditure (including curtailing of the sums authorised to be paid and applied from and out of the Consolidated Fund of India under any Act so as to provide for the appropriation of such sums):
     Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of India under clause (3) of article 112 of the Constitution or to any other expenditure which is required to be incurred under any agreement or contract or such other expenditure which cannot be postponed or curtailed.
     (3)(a) Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.
     (b) Where, owing to unforeseen circumstances, any deviation is made in meeting the obligations cast on the Central Government under this Act, the Minister-in-charge of the Ministry of Finance shall make a statement in both Houses of Parliament explaining--
         (i) any deviation in meeting the obligations cast on the Central Government under this Act;
         (ii) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and
         (iii) the remedial measures the Central Government proposes to take.
Notes:
1. Subs. by s. 215, ibid., for "every quarter" (w.e.f. 31-3-2018).
2. Ins. by s. 215, ibid. (w.e.f. 31-3-2018).
3. Subs. by s. 215, ibid., for "pre-specified levels mentioned in the Fiscal Policy Strategy Statement and the rules made under this Act" (w.e.f. 31-3-2018).
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