| DF introduces fiscal responsibility
TIMES NEWS NETWORK
Mumbai: The DF government on Tuesday ushered in a new fiscal framework
aimed at stabilising government spending and virtually eliminating
the deficit by 2009.
The much-awaited Maharashtra Fiscal Responsibility and Budgetary Management
Bill, 2005, was introduced in the state assembly by finance minister
Jayant Patil late on Tuesday.
The bill lays down specific targets for reducing the fiscal deficit
and makes it mandatory for the powers-that-be to adhere to fiscal
management principles. Any deviation from the set rules would require
the sanction of the state legislature with the finance minister being
responsible for explaining any policy change on matters of finance.
The proposed law aims to introduce an unprecedented transparency in
the budget with the state having to table a medium-term fiscal policy
statement along with a strategy statement before the state legislature.
The state finance minister would be required to do quarterly reviews
of the trends in revenue income and expenditure and place them before
the state legislature, the bill states.
The state government would also be required to bring out special statements
on the number of employees in the government, public sector undertakings
and aided institutions and their related salaries. The special statement
would have to be presented in the state legislature along with the
annual budget, the proposed law says.