Section 5(1) in The Jharkhand Fiscal Responsibility and Budget Management Act, 2007
(1)In particular and without prejudice to the generality of the foregoing provisions, the State Government shall :-(a)Reduce revenue deficit to nil at the end of the 31st day of March, 2009;(b)[ Reduce fiscal deficit to 3% (Three percent) of the estimated Gross State Domestic Product at the end of the 31st March, 2011;] [Substituted by Jharkhand Act 3 of 2010.](c)Reduce fiscal deficit by such percentage of Gross State Domestic Product (GSDP) in each of the financial years in a manner consistent with the goal set in clause (b);(d)Generate a primary surplus of over 3 percent of Gross State Domestic Product (GSDP) by 'the year ending 31st March, 2008;(e)Other important monitorable fiscal targets would be :-(i)the ratio of salary to State's own revenue is to be reduced to 80 percent by the year ending 31st March, 2008:(ii)the ratio of non interest committed revenue expenditure to State's own and mandated revenue is to be reduced to 55 percent by the year ending 31st March, 2008; and(iii)the ratio of revenue deficit to revenue receipt is to be reduced to zero percent by the year ending 31st 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 18 to 25 percent;(g)The total debt stock should be limited to 300 percent of the total revenue receipt of the State (by the year ending 2007-2008):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 due to 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 House of 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.
