State Act

The Gujarat Fiscal Responsibility Act, 2005

1[5. Fiscal management targets. In particular, and without prejudice to the generality of the foregoing provisions, the State Government shall- (a) reduce the revenue deficit to zero by the financial year, commencing from the 1st April, 2011 and ending on the 31st March, 2012 and maintain at that level or generate revenue surplus thereafter; (b) reduce fiscal deficit to not more than three per cent. of the estimated Gross State Domestic Product of the year, from the financial year commencing from the 1st April, 2011 and ending on the 31st March, 2012 and maintain at that level thereafter: 1[Provided that, for the financial year 2020-21, additional fiscal deficit of 2 per cent. over and above 3 per cent. of Gross State Domestic Product (up to 5 per cent.) shall be permissible]; (c) cap the total public debt of the State Government so as not to exceed 27.1 per cent. of the estimated Gross State Domestic Product of the year, for each of the financial years commencing from the 1st April, 2011 and ending on the 31st March, 2015; (d) cap outstanding guarantees within the limit provided in the Gujarat State Guarantees Act, 1963: Provided that revenue deficit and fiscal deficit may exceed the limits specified under this section due to ground or grounds of unforeseen demands on the finances of the State Government arising out of internal disturbance or natural calamity or due to any other exceptional ground as the State Government may specify: Provided further that a statement in respect of the ground or grounds specified in the first proviso shall be placed before the State Legislature, as soon as may be, after such deficit amount exceeds the aforesaid targets.]