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What is Fiscal Policy Strategy Statement, Fiscal Policy Strategy Statement Meaning and Definition

WHAT IS FISCAL POLICY STRATEGY STATEMENT Fiscal Policy Strategy Statement The Fiscal Policy Strategy Statement, presented to Parliament under Section 3(4) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, outlines the strategic priorities of the government in the fiscal area for the ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees. The statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures.   The Interim Budget did not outline such a statement. Here s what the government aimed to achieve in its Fiscal Policy Strategy Statement of Budget 2018:

What is Medium-term Fiscal Policy Statement, Medium-term Fiscal Policy Statement Meaning, and Definition

WHAT IS MEDIUM-TERM FISCAL POLICY STATEMENT Medium-term Fiscal Policy Statement The Medium-term Fiscal Policy Statement, presented to Parliament under Section 3(2) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, sets out three-year rolling targets for four specific fiscal indicators in relation to gross domestic product (GDP) at market prices (i) Revenue Deficit, (ii) Fiscal Deficit, (iii) Tax to GDP ratio and (iv) Total outstanding Debt at the end of the year. The statement includes the underlying assumptions, an assessment of sustainability relating to balance between revenue receipts and revenue expenditure and the use of capital receipts, including market borrowings for generation of productive assets.

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