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The Kerala Finance Minister, Mr K.M. Mani, has introduced a Bill to amend the Kerala Fiscal Responsibility Act, 2003 seeking to wipe out the revenue deficit by a newly fixed timeline of 2014-15.
The Assembly on Thursday proceeded to refer the Bill to its Subject Committee after a three-hour discussion on the same.
Introducing the Bill, the Finance Minister said the achievement of the milestone target would entitle the State Government to a Central assistance of Rs 1,935 crore from 2011-12 to 2014-15.
The aim was to achieve fiscal discipline as set out by the 13th Finance Commission and enable the State to make a valid claim for debt relief on offer from the Centre.
The Bill proposes to bring down the revenue deficit to 1.4 per cent of the State Domestic Product during the current financial year itself.
Further reductions envisaged are 0.9 per cent by 2012-13, 0.5 per cent by 2013-14, and zero by 2014-15, the Minister said.
The fiscal deficit is sought to be brought to the level of 3.5 per cent during the current financial year, and reducing it to three per cent by 2013-14.
The Bill also aims to cut down the State’s total liabilities to 29.8 per cent over the next four-year period.
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