Section 7 in The Meghalaya Fiscal Responsibility and Budget Management Act, 2006
7. Fiscal Policy Statement to be laid before the Legislature.
(1)Government shall in each financial year lay before the House of the Legislature the following statements of fiscal policy along with the budget, namely:-(a)Macroeconomic Framework Statement;(b)Medium Term Fiscal Policy Statement;(c)Fiscal Policy Strategy Statement.(2)The Macroeconomic Framework Statement, in such form as may be prescribed, shall contain an overview of the State's economy, an analysis of growth and sectoral composition of the GSDP, an assessment of Government finances and future prospects.(3)Medium Term Fiscal Policy Statement shall set forth in such form as may be prescribed the fiscal management objectives of Government and three years' rolling targets for the prescribed fiscal indicators and clear enunciation of the underlying assumptions with respect to:-(a)the balance between revenue receipts and revenue expenditure;(b)the use of capital receipts for generating productive assets;(c)the estimated yearly pension liabilities for the next ten years on the basis of trend growth rate.(5)the Fiscal Policy Strategy Statement shall be in such form as may be prescribed and shall contain, inter alia,-(i)the fiscal polices of Government for the ensuing year relating to taxation, expenditure, borrowings and other liabilities (including borrowings by Public Sector Undertakings and Special Purpose Vehicle and other equivalent instruments where the liability for repayment is on Government), lending investments, other contingent liabilities, user charges on pubic goods/utilities and guarantees of Public Sector Undertakings which have potential budgetary implications;(ii)the strategic priorities of Government in the fiscal area for the ensuing year;(iii)the key fiscal measures and the rationale for any major deviation in fiscal measures pertaining to taxation, subsidy, expenditure borrowings and user charges on public goods/utilities;(iv)an evaluation of the current policies of Government vis-a-vis the fiscal management principles set out in section 5 the fiscal objectives set out in the Medium Term Fiscal Policy Statement under sub-section (3) of Section 7 and fiscal targets set out in Section 4.
