Section 4(1) in The Arunachal Pradesh Fiscal Responsibility (and Budget Management) Act, 2006
(1)The State Government will be guided by the following fiscal management principles :(a)maintain Government debt at prudent levels;(b)manage guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities;(c)ensure that policy decisions of the Government have due regard to their financial implications on future generations;(d)ensure that borrowings are used for productive purposes and accumulation of capital assets, and are not applied to finance current expenditure;(e)ensure a reasonable degree of stability and predictability in the level of the tax burden;(f)maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions;(g)pursue tax policies with due regard to economic efficiency and compliance costs;(h)pursue non-tax revenue policies with due regard to cost recovery and equity;(i)pursue expenditure policies that would provide impetus for economic growth, poverty reduction and improvement in human welfare;(j)build up a revenue surplus for sue in capital formation productive expenditure;(k)ensure that physical assets of the Government are properly maintained;(l)disclose sufficient information to allow the public to scrutinize the conduct of fiscal policy and the state of public finances;(m)ensure that Government uses resources in ways that give best value for money; and also ensure that public assets are put to best possible use;(n)minimize fiscal risks associated with running of public sector undertakings and utilities proving public goods and services;(o)manage expenditure consistent with the level of revenue generated;(p)formulate budget in a realistic and objective manner with due regard to the general economic outlook and revenue prospects, and minimize deviations during the course of the year; and(q)ensure discharge of current liabilities in a timely manner.
