Regd. No. NW/CH-22 Regd. No. CHD/0092/2018-2020 PUNJAB GOVT. GAZ. (EXTRA), AUGUST 28, 2020 1039
(BHDR 6, 1942 SAKA)
EXTRAORDINARY
Published by Authority
CHANDIGARH, FRIDAY, AUGUST 28, 2020
(BHADRA 6, 1942 SAKA)
PUNJAB VIDHAN SABHA SECRETARIAT
NOTIFICATION
The 28th August, 2020
No. 17-PLA-2020/58.- The Punjab Fiscal Responsibility And Budget
Management (Second Amendment) Bill, 2020 is hereby published for general
information under the proviso to rule 121 of the Rules of Procedure and
Conduct of Business in the Punjab Vidhan Sabha (Punjab Legislative
Assembly):-
Bill No.17-PLA-2020
THE PUNJAB FISCAL RESPONSIBILITY AND BUDGET
MANAGEMENT (SECOND AMENDMENT) BILL, 2020
A
BILL
further to amend the Punjab Fiscal Responsibility And Budget
Management Act, 2003.
BE it enacted by the Legislature of the State of Punjab in the Seventy-
first Year of the Republic of India as follows:-
1. (1) This Act may be called the Punjab Fiscal Responsibility And
Budget Management (Second Amendment) Act, 2020.
Short-title And Commencement
( 1039 )
1040 PUNJAB GOVT. GAZ. (EXTRA), AUGUST 28, 2020
(BHDR 6, 1942 SAKA)
(2) It shall come into force at once.
2. In the Punjab Fiscal Responsibility and Budget Management Act,
2003, in section 4, in sub-section (2), for clause (a), the following clause shall
be substituted, namely:-
Amendment in Section 4 of Punjab Act 11 of 2003
"(a) contain fiscal deficit as per cent of Gross State Domestic
Product (GSDP) at 3.5 per cent (three and a half per cent)
and an additional 1.5 per cent (one and a half per cent) in the
financial year 2020-2021, subject to reforms as laid hereunder,
and at 3.0 per cent (three per cent) in the financial year 2021-
2022 and maintain thereafter. The additional 1.5 per cent (one
and a half per cent) in the financial year 2020-2021 shall be
conditional to the following reforms:-
(i) Implementation of One Nation One Ration Card System;
(ii) Ease of doing business reform;
(iii) Urban Local body/utility reforms; and
(iv) Power Sector reforms.
The weightage of each reform is 0.25 per cent of GSDP
totaling to 1.0 per cent (one per cent). The remaining borrowing
limit of 0.50 per cent will be conditional on undertaking of at
least 3 out of the above-named reforms;".
PUNJAB GOVT. GAZ. (EXTRA), AUGUST 28, 2020
1041
(BHDR 6, 1942 SAKA)
STATEMENT OF OBJECTS AND REASONS
In view of the serious negative impact of the unprecedented COVID-19
pandemic on the resources of State Governments, to strengthen resources in
the hands of State Governments, the Government of India has decided to
provide relaxation in borrowing limits by increasing an additional Borrowing
Limit of up to 2.0 per cent of Gross State Domestic Product (GSDP) for the
year 2020-2021. However, the relaxation in borrowing limits is partly
unconditional to the extent of 0.5 per cent and the remaining 1.5 per cent is
conditional to the implementation of specific State Level Reforms. The reforms
should be implemented before 31st January 2021 to get the additional Market
Borrowing.
The State Government has accepted the decision of the Government of
India to contain its fiscal deficit as per cent of Gross State Domestic Product
(GSDP) at 3.5 per cent and an additional 1.5 per cent in the financial year
2020-2021, conditional to the following reforms:
a) Implementation of One Nation One Ration Card System;
b) Ease of doing business reform;
c) Urban Local body/utility reforms; and
d) Power Sector reforms.
The weightage of each reform will be 0.25 per cent of GSDP totaling to
1 per cent. The remaining borrowing limit of 0.50 per cent will be conditional
to the undertaking of at least 3 out of the above-named reforms.
borrowing. Hence this amendment / enactment.
MANPREET SINGH BADAL
FINANCE MINISTER, PUNJAB 1042 PUNJAB GOVT. GAZ. (EXTRA), AUGUST 28, 2020
(BHDR 6, 1942 SAKA)
FINANCIAL MEMORANDUM
In view of the serious negative impact of the unprecedented COVID-19 pandemic on the resources of State Governments, to strengthen resources in the hands of State Governments, the Government of India has decided to provide relaxation in borrowing limits by increasing an additional Borrowing Limit of up to 2.0 per cent of Gross State Domestic Product (GSDP) for the year 2020-2021 subject to implementation of specific State Level Reforms. The State of Punjab has also been allowed an additional borrowing of 2.0 per cent of Gross State Domestic Product (GSDP) i.e. Rs. 12130.00 crore in 2020-21 over and above its Net borrowing ceiling, which is 3% of GSDP. However, the relaxation in borrowing limits is partly unconditional to the extent of 0.5 per cent and remaining 1.5 per cent is conditional to the implementation of following reforms:
a) Implementation of One Nation One Ration Card System;
b) Ease of doing business reform;
c) Urban Local body/utility reforms; and
d) Power Sector reforms.
The weightage of each reform shall be 0.25 per cent of GSDP totaling to 1.0 per cent (one per cent). The remaining borrowing limit of 0.50 per cent will be conditional to the undertaking of at least 3 out of the above- named reforms.
2. Further, this additional borrowing of 2.0 per cent of Gross State Domestic Product is conditional to amendment of State's FRBM legislation for the year 2020-21 to this effect.
3. The proposed amendment in clause (a) of Sub-section (2), of Section 4 of the Fiscal Responsibility and Budget Management Act, 2003 will result in additional borrowing of Rs. 12130.00 crore as mentioned above, over and above 3% of GSDP (Net borrowing ceiling of the State of Punjab permissible under FRBM Act, 2003), during the Financial Year 2020-21.
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The Governor has, in pursuance of clause (1) and (3) of Article 207 of the Constitution of India, recommended to the Punjab Legislative Assembly, the introduction and consideration of the Bill.