Section 147 - Amendment of section 3. - Finance Act, 2012

Amendment of section 3. 147. 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 (1), 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 (1)."; (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 Mediumterm 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.