Section 5 in The Gujarat Fiscal Responsibility Act, 2005
5. Fiscal management targets.
- In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall-(a)reduce the revenue deficit to zero within a period of three years commencing from the 1st April, 2005 and ending on the 31st March 2008 and maintain at that level or generate revenue surplus thereafter;(b)reduce the revenue deficit in each of the financial year commencing from the 1st of April, 2005 in a manner so as to achieve the desired goal set out in clause (a).(c)reduce fiscal deficit to not more than three per cent, of the estimated Gross State Domestic Product within a period of four years commencing from the 1st April, 2005 and ending on the 31st March, 2009;(d)reduce the fiscal deficit in each of the financial year commencing from the 1st of April, 2005 in a manner so as to achieve the desired goal set out in clause (c).(e)cap within a period of three years commencing from the 1st April, 2005 and ending on the 31st March, 2008, the total public debt of the State Government at thirty percent, of the estimated Gross State Domestic Product for that year;(f)cap outstanding guarantees within the limit provided in the Gujarat State Guarantees Act, 1963 (Gujarat XXII of 1963);Provided that the revenue deficit and the fiscal deficit may exceed the limits specified under this section on account of unforeseen circumstances or natural calamity:Provided further that the excess expenditure on the grounds mentioned in the first proviso shall not exceed the actual fiscal cost spent to meet with the situation.
