DF introduces fiscal responsibility bill 
TIMES NEWS NETWORK   30 Mar 05


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. 

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