Section 5 in The Orissa Fiscal Responsibility and Budget Management Act, 2005
5. Fiscal Management Targets.
- In particular and without prejudice to the generality of the foregoing provisions, the State Government shall-(a)reduce revenue deficit to nil within a period of five financial years beginning from the initial financial year on the 1st day of April, 2004 and ending on the 31st day of March, 2009, [the annual reduction of revenue deficit on the average being rupees two hundred and eighty-five crores] [Inserted vide Orissa Gazette No. 669/20.5.2006, Notification No. 6866/20.5.2006.](b)reduce fiscal deficit to not more than three per cent of the estimated gross State domestic product within a period of five financial years beginning from the initial financial year on the 1st day of April, 2004 and ending of the 31st day of March 2009;(c)reduce fiscal deficit by 1.5 percentage of Gross State Domestic Product (GSDP) in each of the financial years beginning on the 1st day of April, 2004 in a manner consistent with the goal set in Clause (b);(d)generate a primary surplus of over two per cent of Gross State Domestic Product (GSDP) by the year ending 31st day of March, 2008;(e)other important monitorable targets would be-(i)the ratio of salary to State's own revenue is to be reduced to eighty per cent by the year ending 31st day of March, 2008;(ii)the ratio of non-interest committed revenue expenditure to State's own and Mandated Revenue is to be reduced to fifty-five per cent by the year ending 31st day of March, 2008; and(iii)the ratio of revenue deficit to revenue receipt is to be reduced to zero percent by the year ending 31st day of March, 2009.(f)in order to bring the debt stock to a sustainable level, interest payment as a percentage of revenue receipt is to be limited to eighteen to twenty-five per cent;(g)the total debt stock shall be limited to three hundred per cent of the total revenue receipt of the State by the year ending 2007-08 :Provided that while revenue deficit and fiscal deficit exceed the limits specified under this sub-section due to unforeseen demands on the finances of the State Government because of natural calamity, such excess shall not exceed the actual fiscal cost that can be attributed to the natural calamities:Provided further that the ground or grounds specified in the first proviso shall be placed before the State Legislature, as soon as may be, after it becomes likely that such deficit amount may exceed the aforesaid limits, with an accompanying report stating the likely extent of excess and reasons therefor
