Section 4(3) in The Karnataka Fiscal Responsibility Act, 2002
(3)In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall -(a)reduce revenue deficit to nil within a period of four financial years beginning from the initial financial year on the 1st day of April, 2002 and ending on the 31st day of March, 2006;(b)reduce revenue deficit as a percentage of Gross State Domestic Product (GSDP) in each of the financial years beginning on the 1st day of April, 2002, in a manner consistent with the 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 financial years beginning from the initial financial year on the 1st day of April, 2002 and ending on the 31st day of March, 2006;(d)reduce fiscal deficit as a percentage of Gross State Demostic Product (GSDP) in each of the financial years beginning on the 1st day of April, 2002 in a manner consistent with the goal set out in clause (c);(e)not to give guarantee for any amount exceeding the limit stipulated under the Karnataka Ceiling to Government Guarantees Act, 1999 (Karnataka Act 11 of 1999);(f)ensure within a period of thirteen financial years, beginning from the initial financial year on the 1st day of April, 2002, and ending on the 31st day of March, 201S; that the total liabilities at the end of the last financial year do not exceed twenty five per cent of the estimated gross state domestic product for that year;Provided that revenue deficit and fiscal deficit may exceed the limits specified under this sub-section due to ground or grounds of unforeseen demands on the finances of the State Government due to national security or natural calamity, subject to the condition that the excess beyond limits arising due to natural calamities does not exceed the actual fiscal cost that can be attributed to the calamities;Provided further that the ground or grounds specified in the first proviso shall be placed before the House of Legislature, as soon as may be, after it becomes likely that such deficit amount may exceed the aforesaid limits, with an accompanying report stating the likely extent of excess, and reasons therefor.
