- In section 3 of the Fiscal Responsibility Act, -(a)in sub-section (1), -(i)in die opening portion, for die words "demands for grants", die words "demands for grants except the Medium-term Expenditure Framework Statement" shall be substituted;(ii)after clause (c), the following clause shall be inserted, namely: -"(d) the Medium-term Expenditure Framework Statement";(b)after sub-section (I), the following sub-sections shall be inserted, namely: -"(1A) The statements referred to in clauses (a) to (c) of sub-section (1) shall be followed up with the Medium-term Expenditure Framework Statement with detailed analysis of underlying assumptions.(IB)The Central Government shall lay die Medium-term Expenditure Framework Statement referred to in clause (d) of sub-section (J) before both Houses of Parliament, immediately following die Session of Parliament in which the policy statements referred to in clauses (a) to (c) were laid under subsection (7).";(c)after sub-section (6), the following sub-section shall be inserted, namely: -"(6A) (a) The Medium-term Expenditure Framework Statement shall set forth a three-year rolling target for prescribed expenditure indicators with specification of underlying assumptions and risk involved.(b)In particular and without prejudice to the provisions contained in clause (a), die Medium-term Expenditure Framework Statement shall, inter alia, contain -(i)the expenditure commitment of major policy changes involving new service, new instruments of service, new schemes and programmes;(ii)the explicit contingent liabilities, which are in the form of stipulated annuity payments over a multi-year time-frame;(iii)die detailed breakup of grants for creation of capital assets.";(d)in sub-section (1), for the words "the Fiscal Policy Strategy Statement,", the words "the Fiscal Policy Strategy Statement, die Medium-term Expenditure Framework Statement" shall be substituted.
