Section 4(2) in Tamil Nadu Fiscal Responsibility Act, 2003
(2)[ The State Government shall-(a)reduce the ratio of revenue deficit to revenue receipt every year by three per cent, to five per cent, depending on the economic situation in that year to a level [not exceeding five per cent by 31st March 2016, eliminate revenue deficit by 2016-2017] and adhere to it thereafter;(b)reduce the ratio of fiscal deficit to Gross State Domestic Product beginning from the financial year 2002-2003 with a medium term goal of not more than three per cent fiscal deficit to Gross State Domestic Product to be attained by the end of 31st March 2008 and adhere to it thereafter;(c)cap the total outstanding guarantees to hundred per cent of the total revenue receipt in the preceding year or at ten per cent of the Gross State Domestic Product, whichever is lower;(d)cap the risk weighted guarantees to seventy-five per cent, of total revenue receipt in the preceding year or at seven and half per cent, of the Gross State Domestic Product, whichever is lower.]
