Section 5 in The Karnataka Local Fund Authorities Fiscal Responsibility Act, 2003
5. Measures for fiscal transparency.
(1)The local fund authority shall take suitable measures to ensure greater transparency in its fiscal operation in public interest and minimize as far as practicable, secrecy in the preparation of the annual budget. For this purpose every local fund authority shall ensure that there are at least two meetings every year at the time of budget preparation and finalization with such citizen forums as may be prescribed.(2)Provision shall be made for meetings at such intervals and with citizen forums as may be prescribed to review the operations and finances of the local fund authority.(3)In particular, and without prejudice to the generality of the foregoing provisions, local fund authority shall, at the time of presentation of the annual budget, disclose in a statement in such form as may be prescribed -(a)significant changes in the accounting standards, policies and practices affecting or likely to affect the computation of fiscal indicators;(b)as far as practicable, and consistent with protection of public interest, the contingent liabilities created by way of guarantees and the actual liabilities arising out of execution of works by external agencies where liability for repayment is on the local fund authority.(4)The State Government shall ensure that such contingent liabilities are communicated to the concerned local fund authority so that it shall make sufficient provision in its budget.
