Fiscal Responsibility and Budget Management Act, 2003

Fiscal Responsibility and Budget Management Act, 2003

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Limiting the Central Government's borrowings, debt, and deficits, increasing transparency in the Central Government's fiscal operations, and conducting fiscal policy in a medium-term framework, as well as for matters connected thereto or incidental thereto are the functions of the Fiscal Responsibility and Budget Management Act to provide for the responsibility of the Central Government to ensure intergenerational equity in fiscal management and long-term macroeconomic stability by removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability.

The Enactment of the Act

1. Short introduction, scope, and beginning

(1) The Fiscal Responsibility and Budget Management Act of 2003 is another name for this law.

(2) It covers the entirety of India.

(3) On the specified date 2, it will take effect. The term "Fiscal deficit" refers to the difference between the total receipts into the Fund (excluding debt receipts) during a fiscal year and the total disbursements from the Consolidated Fund of India, excluding debt repayment.

At any given time, "central government debt" refers to

(i) the Central Government's total outstanding liabilities on the security of the Consolidated Fund of India, including external debt valued at current exchange rates

(ii) India's public account's total outstanding liabilities; and the sentence that left out the phrases "achieving sufficient revenue surplus and" Act 13 of 2018 (with effect from 29.03.2018)

(iii) The cash balance available at the end of that date less any body corporate or other entity owned or controlled by the Central Government that the Government is required to repay or service from the annual financial statement.

The term "general government debt"refers to the combined debt of the federal and state governments, excluding intergovernmental obligations; The term "Gross Domestic Product" refers to the aggregate of the gross value added by all resident production units, minus the portion of product taxes and subsidies that are not included in the output valuation, calculated at current market prices, as published by the Central Statistics Office on occasion;

“In the Central Statistics Office's periodic publications, "Real Gross Domestic Product" refers to the gross domestic product calculated at constant prices; Real GDP expansion is referred to as Real Output Growth.