Section 3 in Punjab Fiscal Responsibility and Budget Management Act, 2003
3. Fiscal policy statement to the laid before the Legislative Assembly.
(1)The State Government shall lay in each financial year before the Punjab Legislative Assembly, the Medium-term Fiscal Policy Statement alongwith the annual budget.(2)The Medium-term Fiscal Policy Statement shall set forth a three-year rolling target for prescribed fiscal indicators with specification of underlying assumptions.(3)In particular and without prejudice to the provisions contained in sub- section (2), the Medium-term Fiscal Policy Statement shall include an assessment of sustainability relating to,-(i)the balance between revenue receipts and revenue expenditures;(ii)the use of capital receipts including market borrowings for generating productive assets;(iii)the evaluation of performance of the prescribed fiscal indicators in the previous year vis-a-vis the targets set out earlier and the likely performance in the current financial year as per the revised estimates; and(iv)the statement on recent economic trends and future prospects for growth and development, affecting the fiscal position of the State Government.(4)The Medium Term Fiscal Policy Statement shall, inter alia contain, -(i)policies of the State Government for the ensuing financial year relating to taxation, expenditure, market borrowings and other liabilities (including off-budget borrowings), lending and investments, pricing of administered goods and services, securities and description of other activities, such as, guarantees and activities of Public Sector Undertakings which have potential budgetary implications;(ii)the strategic priorities of the State Government for the ensuing financial year in the fiscal area; and(iii)the key fiscal measures and rationale for any major deviation in fiscal measures pertaining to taxation, subsidy, expenditure, administered pricing and borrowings.(5)The Medium-term Fiscal Policy Statement shall be in such form, as may be prescribed.
