Bill to amend FRBM Act tabled in House - The Tribune India

Tribune News Service

Shimla, March 15

Chief Minister Jai Ram Thakur, who also holds the Finance department, introduced the Himachal Pradesh Fiscal Responsibility and Budget Management (Amendment) Bill, 2021 in the Vidhan Sabha yesterday.

The Himachal Pradesh Fiscal Responsibility and Budget Management Act was enacted in the year 2005. Listing the objectives of the amendmebnt in the Bill, the Chief Minister said the actual receipts of Central taxes declined during 2019-20 due to which share of the states also got affected.

“The Government of India has allowed one-time special dispensation for additional borrowing to compensate states for lower devolution of Central taxes on February 26, 2020 subject to amendment in the Fiscal Responsibility and Budget Management Laws,” he stated.

He said in addition, the state of Himachal Pradesh received one time receipts from the Union Government on account of its share of Compensatory Afforestation Fund Management and Planning Authority (CAMPA) Fund credited in the public account, which is included in the public debt of the state.

“To enable the state government to avail additional borrowing in public interest and to maintain the pace of development, the fiscal deficit could not be maintained at the level of 3 per cent of the estimated Gross State Domestic Product in the financial year 2019-20. Therefore, it has become necessary to amend the Himachal Pradesh Fiscal Responsibility and Budget Management Act, 2005 suitably from January 1, 2020,” the CM said.

Listing the Financial Memorandum of the Bill, Thakur said the provisions of the Bill, when enacted, shall be enforced through the existing government machinery. He said the state government has been able to borrow up to 2 per cent more than the present limit of fiscal deficit of 3 per cent of Gross State Domestic Product for the year 2019-20 which compensated it for loss of revenue of the State and helped to maintain the pace of development. The fiscal position of the state will be impacted accordingly, he added.

Published On: Wed, 17 Mar 2021 02:26:00 GMT