Section 9 in Andhra Pradesh Fiscal Responsibility and Budget Management Act, 2005
9. Fiscal Targets.
(1)The State Government may prescribe such targets as may be deemed necessary for giving effect to the fiscal management objectives.(2)In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall,-(a)reduce revenue deficit by an amount equivalent to at least 0.32 percentage point of GSDP in each financial year, beginning from the Is' day of April 2005, so as to eliminate it by 31sl March 2009 and generate revenue surplus thereafter;(b)[ reduce fiscal deficit by an amount equivalent to at least 0.25 percentage point of Gross State Domestic Product in each financial year beginning from the 1st day of April, 2005, so as to bring it down to not more than 3 per cent; subject to the fiscal deficit limits fixed by the Government of India from time to time: [Substituted by Act No. 7 of 2010, dated 13.4.2010.]Provided that for the financial year ending March 2009 the fiscal deficit shall not be more than 3.5 percent of G.S.D.P. and for the financial year ending March, 2010 the fiscal deficit shall not be more than 4 percent of G.S.D.P.](c)ensure within a period of five years, beginning from the initial financial year on the 1st day of April 2005, and ending on the 31s1 day of March 2010, that the outstanding total liabilities do not exceed 35 per cent of the estimated GSDP for that year;(d)limit the amount of annual incremental risk weighted guarantees to 90 per cent of the TRR in the year preceding the current year:Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section due to ground or grounds of unforeseen demands on the finances of the State Government arising out of internal disturbance or natural calamity or such other exceptional grounds as the State Government may specify:Provided further that a statement in respect of the ground or grounds specified in the first proviso shall be placed before the House or Houses of the Legislature, as soon as maybe, after such deficit amount exceeds the aforesaid targets.
