Section 4 in The Gujarat Fiscal Responsibility Act, 2005
4. Fiscal management principles.
(1)The State Government shall take appropriate measures to reduce the revenue deficit and contain the fiscal deficit and thereby build up an adequate revenue surplus by following the principles laid down in sub-section (3).(2)The revenue surplus as aforesaid may be utilised for discharging liabilities of the State.(3)The State Government shall be guided by the following fiscal management principles, namely:-(i)transparency in setting the fiscal policy objectives, the implementation of public policy and in the publication of public accounts;(ii)stability in fiscal policy making process;(iii)responsibility in the management of public finances;(iv)fairness in policy decisions of the State Government having due regard to the financial implications on future generation;(v)efficiency in design and implementation of the fiscal policy and managing the public sector;(vi)to maintain Government debt at prudent level;(vii)to manage guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities;(viii)to maintain the integrity of the tax system by minimizing special incentives, concessions and exemptions;(ix)to pursue non-tax revenue policies with due regard to cost recovery and equity;(x)to pursue expenditure policies that would provide impetus to economic growth, poverty reduction and promotion of welfare of the people;(xi)to ensure that State Government uses resources in such a way that give best value for money and also ensure that public assets are put to the best possible use;(xii)to minimize fiscal risks associated with running of public sector undertakings and utilizes it for providing public goods and services;(xiii)to formulate budget to realistic and objective manner with due regard to the general economic outlook and revenue prospects and to minimize deviations during the course of the year.
