Section 4(1) in The Assam Fiscal Responsibility and Budget Management Act, 2005
(1)The State Government will be guided by following fiscal management principles:-(a)manage expenditures consistent with the revenue generated;(b)maintain Government debt at prudent level;(c)manage guarantees and other contingent liabilities prudently with particular reference to the quality and level of such liabilities;(d)ensure that the policy decisions of the Government have due regard to the financial implications on the future generations;(e)ensure that the borrowings are used for productive assets and accumulation of capital assets and are not applied to finance revenue expenditures;(f)ensure a reasonable degree of stability and predictability in the level of tax burden;(g)maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions;(h)pursue tax policies with due regard to economic efficiency and compliance costs;(i)pursue non-tax policies with due regard to cost recovery and equity;(j)pursue expenditure policies that would provide impetus to economic growth, poverty, reduction and improvement in human welfare;(k)build up a revenue surplus for use in capital formation and productive expenditure;(l)ensure maintenance of the physical assets of the Government;(m)maintain transparency by disclosing sufficient information to allow public to scrutinize the state of the public finances;(n)ensure best possible uses of the Government resources and public assets;(o)minimize the fiscal risk associated with management of public sector undertakings and the utilities providing public goods and services;(p)ensure discharge of current liabilities in a timely manner;(q)formulate a realistic budget with due regard to the general economic outlook and revenue prospects and minimize deviations during the course of the year.
