TEAM HERALD
teamherald@herald-goa.com
PANJIM: The Cabinet approved the proposal to amend the Goa Fiscal Responsibility and Budget Management Act-2006 including reducing the revenue deficit to nil by March 31, 2015, and to reduce the ratio of fiscal deficit to Gross State Domestic Product beginning from the financial year 2013-14 and maintain it within 3 per cent.
The decision was taken to amend sections 5, 6 and 7 of the Act. The amendment also sought to cap the total outstanding guarantees within the specified limit under the Goa State Guarantees Act, 1993 (Goa Act No. 16 of 1993) and to ensure that by 31st March 2014, the ratio of debt to gross State Domestic Product is brought down to 27 per cent, and later to bring it below 25 per cent and to undertake appropriate measures in cash management practices so as to avoid using overdraft from the Reserve Bank of India.”
The Bill was vetted by the Law Department.
The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2006, as per the recommendation of the Planning Commission as well as the Twelfth Finance Commission, to bring about economic reforms based on fiscal consolidation and discipline and efficient utilisation of public resources. The Government of India enacted the Fiscal Responsibilities and Budget Management (FRBM) legislation in the year 2003, which was followed by many States. It is also a pre-condition stipulated by 13th Finance Commission to claim the State specific grants.
The chief minister said that the target of fiscal deficit to Gross State Domestic Product to be kept within 3 per cent was already achieved and they had a sinking fund that had touched around Rs 500 crore so “guarantees are also well within limit.”
