Section Text
In section 3 of the Fiscal Responsibility Act,
(a) in sub-section (1),
(i) in the opening portion, for the words "demands for grants", the words "demands for grants except the Medium-term Expenditure Framework Statement" shall be substituted;
(ii) after clause (c), the following clause shall be inserted, namely:
"(d) the Medium-term Expenditure Framework Statement";
(b) after sub-section (7), the following sub-sections shall be inserted, namely:
"(1A) The statements referred to in clauses (a) to (c) of sub-section (1) shall be followed up with the Medium-term Expenditure Framework Statement with detailed analysis of underlying assumptions.
(1B) The Central Government shall lay the Medium-term Expenditure Framework Statement referred to in clause (d) of sub-section (1) before both Houses of Parliament, immediately following the Session of Parliament in which the policy statements referred to in clauses (a) to (c) were laid under sub-section (7).";
(c) after sub-section (6), the following sub-section shall be inserted, namely:
"(6A) (a) The Medium-term Expenditure Framework Statement shall set forth a three-year rolling target for prescribed expenditure indicators with specification of underlying assumptions and risk involved.
(b) In particular and without prejudice to the provisions contained in clause (a), the Medium-term Expenditure Framework Statement shall, inter alia, contain
(i) the expenditure commitment of major policy changes involving new service, new instruments of service, new schemes and programmes;
(ii) the explicit contingent liabilities, which are in the form of stipulated annuity payments over a multi-year time-frame;
(iii) the detailed breakup of grants for creation of capital assets.";
(d) in sub-section (7), for the words "the Fiscal Policy Strategy Statement,", the words "the Fiscal Policy Strategy Statement, the Medium-term Expenditure Framework Statement" shall be substituted.