An Act to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by achieving sufficient revenue surplus and removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto.

Act 39 of 2003 Enacted 26 Aug 2003 In force 05 Jul 2004 Department Department of Economic Affairs

Administered by. Ministry of Finance, Department of Economic Affairs · Other Acts of 2003

Preamble

THE FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2003

ACT No. 39 OF 2003

[26th August, 2003.] An Act to provide for the responsibility of the Central Government to ensure inter-generational equity in fiscal management and long-term macro-economic stability by ¹*** removing fiscal impediments in the effective conduct of monetary policy and prudential debt management consistent with fiscal sustainability through limits on the Central Government borrowings, debt and deficits, greater transparency in fiscal operations of the Central Government and conducting fiscal policy in a medium-term framework and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-fourth Year of the Republic of India as follows:--

What this Act covers

Summary of the Fiscal Responsibility and Budget Management Act, 2003

Key Provisions

1. Fiscal Governance Framework

• Medium-term Fiscal Policy Statement

• Fiscal Policy Strategy Statement

• Macro-economic Framework Statement

• Medium-term Expenditure Framework Statement

2. Fiscal Discipline Measures

• Fiscal Deficit Target: 3% of GDP by a specified deadline

• Debt Targets for General Government and Central Government relative to GDP

• Guarantee Limits for additional commitments

3. Transparency and Accountability

• Disclosure Requirements for financial statements and demands for grants

• Half-yearly Budget Reviews by the Finance Minister

• Monthly Financial Statements by the Central Government

4. Compliance Enforcement

• Actions for Fiscal Shortfalls or excess expenditures

• Parliamentary Approval for deviations from targets

6. Jurisdiction and Protection

• Bar on Civil Court Jurisdiction over Central Government actions under this Act

• Protection for Actions Taken in Good Faith

7. Amendments and Additional Provisions

• Power to Remove Difficulties within a specified period post-commencement

Sections

Type to filter. 14 sections.

1. 1Short title, extent and commencement
2. 2Definitions
3. 3Fiscal policy statements to be laid before Parliament
4. 4Fiscal management principles
5. 5Borrowing from Reserve Bank
6. 6Measures for fiscal transparency
7. 7Measures to enforce compliance
8. 7ALaying of review reports
9. 8Power to make rules
10. 9Rules to be laid before each House of Parliament
11. 10Protection of action taken in good faith
12. 11Jurisdiction of civil courts barred
13. 12Application of other laws not barred
14. 13Power to remove difficulties

Rules made under this Act

7 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

• Fiscal Responsibility and Budget Management (Amendment) Rules, 20182018
• Fiscal Responsibility and Budget Management (Amendment) Rules, 20152015
• Fiscal Responsibility and Budget Management (Second Amendment) Rules, 2015.2015
• Fiscal Responsibility and Budget Management (Amendment) Rules, 20132013
• Fiscal Responsibility and Budget Management (Amendment) Rules, 20122012
• Fiscal Responsibility and Budget Management (Amendment) Rules,20072007
• Fiscal Responsibility and Budget Management Rules, 20042004

Related Acts

• The Finance Act, 2003108 sections
• The Prevention of Money-Laundering Act, 200281 sections
• The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 200315 sections
• The Finance Act, 2002124 sections
• The Finance Act, 200468 sections
• The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 200261 sections
• The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 200225 sections
• The Sick Industrial Companies (Special Provisions) Repeal Act, 20036 sections

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 14 sections of this Act has its own page. This page is not a substitute for legal advice.