Section 4(3) in Uttarakhand Fiscal Responsibility and Budget Management Act, 2005
(3)In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall-(a)[ reduce the revenue deficit to nil in the four years starting from 01st April, 2011 and ending on 31st March, 2015;] [Substituted by section 2 (i) of Uttarakhand Act No. 07 of 2011.](b)reduce revenue deficit as percentage of Gross State Domestic product in each of the financial years referred to a clause (a) in a manner consistent with the goal set out in clause (a);(c)[ (1) The Fiscal deficit targets and annual borrowing limits for the State during the period 2016-17 to 2019-20 are enunciated as follows- [Substituted by section 2 (ii) of Uttarakhand Act No. 07 of 2011.](i)Fiscal deficit of the State will be anchored to an annual limit of 3 percent of GSDP. The State will be eligible for flexibility of 0.25 percent over and above this for any given year for which the borrowing limits are to be fixed if the debt- GSDP ratio is less than or equal to 25 percent in the preceding year.(ii)The State will be further eligible for an additional borrowing limit of 0.25 percent of GSDP in a given year for which the borrowing limits are to be fixed if the interest payments are less than or equal to 10 percent of the revenue receipts in the preceding year.(iii)The two options under these flexibility provisions can be availed can be availed by the State either separately, if any of the above criterion is fulfilled, or simultaneously if both the above stated criterion are fulfilled. Thus, the State can have a maximum fiscal deficit GSDP limit of 3.5 percent in any given year.(iv)The flexibility for availing the additional limit under either of the two options or both will be available to the State only if there is no revenue deficit in the year in which borrowing limits are to be fixed and the immediately preceding year.
