ANNEX REFERRED TO ANSWER IN PART (a)  to  (d) OF THE RAJYA  SABHA UNSTARRED QUESTION NO. 2626  BY MS MABEL REBELLO AND    DR T. SUBBARAMI REDDY TO BE ANSWERED ON 28.7.2009 REGARDING RELAXATION ON FISCAL DEFICIT CEILING

 

 

Sl. No.

State

Request made by the State regarding relaxation in fiscal deficit ceiling during the pre-Budget consultations with the Union Finance Minister

1

Himachal Pradesh

Fiscal Responsibility and Budget Management (FRBM)  target of 3.5% fiscal deficit is unrealistic due to the impact of 6th Central Pay Commission recommendations  and this is  hampering the investment in Power, Agriculture sectors etc.  FRBM Act needs to be amended accordingly.

2

Rajasthan

Additional market borrowings required to implement flag-ship programmes.  Larger borrowing limits for the States to be considered.  Similarly limit for fiscal deficit should also be increased.

3

West Bengal

The entire structure of FRBM Act to be reviewed by an Expert Group.

4

Bihar

FRBM targets should not be made operational for this year.   Fiscal deficit target  to be allowed further relaxation and kept at 5% GSDP.

5

Andhra Pradesh

Higher fiscal deficit target  for 2009-10 would help to go for Capital Expenditure to give additional stimulus  to the economy

6

Gujarat

FRBM Act targets cannot be achieved,.  Therefore policy statement in this regard should be made.

7

Jammu & Kashmir

It is not possible to comply with the parameters laid down in the FRBM Act.  Expert Group needs to be appointed for a review there of.  Fiscal deficit to be borne by the Centre fully.

8

Karnataka

FRBM Act needs to be revised to facilitate increase borrowings by States.

9

Kerala

FRBM policy needs review with the States given necessary freedom.

10

Madhya Pradesh

FRBM – Loans GSDP of 3.5% be increased to 5%.

11

Punjab

FRBM Act needs to be reviewed on an annual basis

12

Uttar Pradesh

FRBM Act is not favourable to States and needs review.

13

Manipur

Increase in FRBM limits proposed.