Section 4(1) in Punjab Fiscal Responsibility and Budget Management Act, 2003
(1)The State Government shall take appropriate measures to eliminate the revenue deficit and contain fiscal deficit.(a)[ reduce the fiscal deficit from the financial year 2005-2006 so as to bring it down to three per cent of Gross State Domestic Product (GSDP) by the year 2009-2010; [Clause (a), (b) and (c) substituted by Punjab Act No. 1 of 2006.](b)reduce revenue deficit from the financial year 2005-2006, so as to bring it down to zero by the year 2008-2009 and generate revenue surplus thereafter;(c)attempt to bring the ratio of debt including contingent liabilities to Gross State Domestic Product (GSDP) down to twenty eight per cent within a period of five years from 2005-2006 to 2009-2010; and](d)cap outstanding guarantees on long term debt to eighty per cent of revenue receipts of the previous year guarantees on short term debt to be given only for working capital or food credit in which case this must be fully backed by physical stocks.
