Section 6 in The Fiscal Responsibility and Budget Management Act, 2003
Title: Measures for fiscal transparency
(1) The Central Government shall take suitable measures to ensure greater transparency in its fiscal operations in public interest and minimise as far as practicable, secrecy in the preparation of the annual financial statement and demands for grants.
(2) In particular, and without prejudice to the generality of the foregoing provision, the Central Government shall, at the time of presentation of annual financial statement and demands for grants, make such disclosures and in such form as may be prescribed.
Title: Measures to enforce compliance
(1) The Minister-in-charge of the Ministry of Finance shall review, 1[on half-yearly basis], the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.
2[(1A) The Central Government shall prepare a monthly statement of its accounts.]
(2) Whenever there is either shortfall in revenue or excess of expenditure over the 3[prescribed levels] during any period in a financial year, the Central Government shall take appropriate measures for increasing revenue or for reducing the expenditure (including curtailing of the sums authorised to be paid and applied from and out of the Consolidated Fund of India under any Act so as to provide for the appropriation of such sums):
Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of India under clause (3) of article 112 of the Constitution or to any other expenditure which is required to be incurred under any agreement or contract or such other expenditure which cannot be postponed or curtailed.
(3)(a) Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.
(b) Where, owing to unforeseen circumstances, any deviation is made in meeting the obligations cast on the Central Government under this Act, the Minister-in-charge of the Ministry of Finance shall make a statement in both Houses of Parliament explaining—
(i) any deviation in meeting the obligations cast on the Central Government under this Act;
(ii) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and
(iii) the remedial measures the Central Government proposes to take.
1. Subs. by s. 215, ibid., for "every quarter" (w.e.f. 31-3-2018).
2. Ins. by s. 215, ibid. (w.e.f. 31-3-2018).
3. Subs. by s. 215, ibid., for "pre-specified levels mentioned in the Fiscal Policy Strategy Statement and the rules made under this Act" (w.e.f. 31-3-2018).
Title: Laying of review reports
1[7A. Laying of review reports.--The Central Government may entrust the Comptroller and Auditor-General of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.]
1. Ins. by Act 23 of 2012, s. 149 (w. e. f. 28-5-2012).
Title: Power to make rules
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the annual targets to be specified under sub-section (2) of section 4;
(b) the fiscal indicators to be prescribed for the purpose of sub-section (2) of section 3;
1[(ba) the expenditure indicators with specifications of underlying assumptions and risk involved under clause (a) of sub-section (6A) of section 3;]
(c) the forms of the Medium-term Fiscal Policy Statement, 2[Fiscal Policy Strategy Statement, Medium-term Expenditure Framework Statement] and Macro-economic Frame Work Statement referred to in sub-section (7) of section 3;
3* * * * *
(d) the disclosures and form in which such disclosures shall be made under sub-section (2) of section 6;
4[(da) the level of short fall in revenue or excess of expenditure under sub-section (2) of section 7;]
(e) any other matter which is required to be, or may be, prescribed.
1. Ins. by s. 150, ibid. (w. e. f. 28-5-2012).
2. Subs. by s. 150, ibid., for Fiscal Policy Strategy Statement (w.e.f. 28-5-2012).
3. Clause (ca) omitted by Act of 13 of 2018, s. 216 (w.e.f. 31-3-2018).
4. Ins. by s. 216, ibid. (w.e.f. 31-3-2018).
Title: Rules to be laid before each House of Parliament
Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.