LexThe Assam Local Self-Government Fiscal Responsibility Act, 2011
Assam · state statute
Open in Lexace · Ask the AI about this actRegis tered No. 768/97 ^Tdt f A THE ASSAM GAZETTE EXTRAORDINARY ZT T'3’ TH T PUBLISHED BY THE AUTHORITY •T ? 297 f W p , W N K , 6 ® W , 2011, 15 W , 1933 (*1^) No. 297 Dispu r, Tuesday, 6th September, 20 11 ,15th Bhadra, 1933 (S.E.) GOVER NMENT OF ASSAM ORDERS BY THE GOVERNOR LEGISLA TIVE DEPAR TMENT :: LEGISLATIVE BRANCH NOTIFICATION The 6th September, 2011 No.LGL. 58/200 9/60 The following Act of the Assam Legislative Assembly which received the assent of the Governor is hereby published for general information. ASSAM ACT NO. XX OF 2011 (Received the assent of Governor on 4th September, 2011) THE ASSAM LOCAL SELF-G OVERNMENT FISCAL RESPONSIBILITY ACT, 2011. 1992 THE ASSAM GAZETTE EXTRA ORDIN ARY SEPTEMBER 6 2011 AN ACT Preamble Short title, extent and commencement Definitions to provide for the respo nsibility of Local Self-Governments to ensure best practice of prudent and financ ial management of their funds, in order' to enhance the- scope for improving social and physical infrastructure and human development, facilitate citizen ’s participation and transparency, adopt appropriate systems for fostering greater transparency in fiscal operations with the use of a medium term fiscal framework, and for matters connected therewith or incidental thereto; - Whereas i t is expedient to provide for the responsibility o f Local Self-Governments to ensure best practice of prudent and financial manag ement of their funds, in order to enhance the scope for improving social and physical infrastructure and human development, facilitate citizen’s participatio n and transparency, adopt appropriate system s for fostering greater transparency in fiscal operations with the use of a medium term fiscal framew ork, and for matters connected therew ith or incidental thereto; It is hereby enacted in the Sixty-second Year of the Republic of the India as follows: - 1. (1) This Act may be called the Assam Local Sclf-Govemmeht Fiscal Responsibility Act, 2011. (2) I t extends to the Local Self-Governments constituted under Part IX and IX-A of the C onstitution o f India as may be notified by the State Government from time to time. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint. .2. In this Act, unless the context otherwise requires, - (a) “Local Self-Government Fund” means the revenue administered by Panchayati Raj Institutions and Urban Local Bodies constituted under Part IX and IX-A o f the Constitution of India and created by the State Government for Panchayats at the District, Intermediate and Village levels in terms of Article 243H (d) of the Constitution and for Municipalities in terms o f Article 243X (d) of the Constitution; (b) “Local Self-Government” means the Panchayati Raj Institutions and Urban Local Bodies constituted under Part IX and IX-A o f the Constitution o f India; (c) “accounting standard” means such accounting standards i n respect of Local Self-Governments, as may be prescribed; (d) “annual budget” means the budget placed before the Local Self- Government concerned as pe r th e relevant Acts or the rules made thereunder; (e) “budget variance” means the difference between the budgeted amount and the actuals for the financial year; (f) “Controlling Authority” means any officer appointed as controlling authority by the State Government for the purpose of this Act and different controlling authorities may be appointed in respect of different Local Self-Governments; (g) “current year” means the year preceding the year for which budget and Medium Term Fisc al Plan (MTFP) being presented; (h) “fiscal indicators” means such measures as may be prescribed, for evaluation of fiscal position o f Local Self-Governments; A -_____ THE ASS AM GAZETTE . EXTRAORDINARY SEPT EMBER 6.2011 1993 Medium Term Fiscal Plan Financial Management Principles (i) “previous year” means the year preceding the current year; 0) “State Goveirsn isas i'* means the State G overnment of Assam in the Finance Department. 3. (1) There shall he prepa red in each financial y ear a Medium Term Fiscal Plan along with the annual budge t in respect o f every Local Self- Government and shall be rubmitted for approval of the concerned authority o f the Local Self-Government. (2) The Medium Term Fiscal Plan shah set forth a five-year rolling target for the fiscal indicators with specification of underlying assumptions. (3) In particula r and without jy ejudtce to the provisio ns contained in sub section (2), the Medium Term. Fiscal Plan shall include an assessment of sustainability relating to, - (a) the balance betwe en revenue receipts and revenue expenditures; and (b) .t he use of capital receip ts including borrowings for generating productive assets, (4) The Medium T enn Fiscal Plan shall, inte r alia, contain, - (a) the med ium term fiscal objectives o f the Local Self-Government; (b) the mission, objectives and goals of the Local Self-Government; (c) an evaluatio n of the performance of the fiscal indicators in the previous year vis-a-vis the targets sec out earlier, and the likely performance in the current year as per revised estimates; (d) a statement on recent trends and future pros pects for growth and developm ent affecting fiscal position of the Local Self- Government; (e) the strategic priorities o f the Local Self-Government in the fiscal area for the ensuing financial, year; (f) the policies o f the Local Self-Government for the ensuing financial year relating to expenditure, borrowings and other liabilities, lending and investments and all such activities which have potential budgetary implications and the key fiscal measures and targets pertaining to each o f these; (g) an evaluatio n as to ~cw the cuneiit policies o f die Local Self- Government are in conformity vith the financial management principles set cut in sec tion 4 and the fiscal objectives set out in the Medium Term Fiscal Plan; (h) a clear linkage cf the physical an d financial targets; (i) the key performance areas and corresponding performance indicators in as much quantitative detail as possible. (5) The Medium Term Fiscal Plan shall be the source document for the preparation of the annual budget and shall address the prime needs of the citizens a s relevant to the specific Local Self-Government such as water supply, construction of road, education, public health, solid waste management and the like. (6) The Medium Term Fiscal Plan shall have a functional focus and provide for backend modalities such as fund based accounting system (FBAS), computerization and a realistic and transparent budgeting process. (7) The Medium Term Fiscal Plan shall be in the form as prescribed in Schedule-I. 4. Every Local Self-Gc vemres'-t shall be guided by the following financial management principles, rntsel y.- (a) ensuring transparency m all stages o f policy making and implementation; (b) introducing performance linked budget policies; (c) providing for effective s ad sustained fiscal monitoring systems; (d) introducing robust financial management principles; (e) maintaining Local Self-Government’s debt at prudent levels; (f) managing guarantees and other contingent liabilities prudently, with particular reference to the quality and level of such liabilities; (g) ensuring that policy decisions c f the Local Self-Government have due regard to the ir current financial position and the financial implications on future generations; 1994 THE ASSAM GAZETTE. EXTRAORDINARY. SEPTEMBE R 6, 2011 Measures for fiscal transparency Measures to enforce Fiscal Discipline (h ) adoptin g the accountin g frame work for Local Self-Governments pres cribe d by Comptr oller an d Aud itor General of India; (i) ensuri ng that borrow ings are used for produ ctive purposes and accum ulation of capital assets , and are not applie d t o finance current expenditure; (j) purs uing tax policie s wit h due regard to econom ic efficiency and ' compl iance costs; (k ) purs uing fiscal po licies with due re gard to co st recov ery and equity; (l) pursu ing expenditu re polic ies that wou ld provid e impetus for econo mic growth, pover ty reduc tion and improve ment in human welfare; (m ) ensu ring that physi cal asse ts o f the Local Self-Governm ent are prope rly maintained; • (n) disclo sing suffici ent inform ation t o allow the pu blic to scrutinize the condu ct of fiscal policy and the state o f Local Self-Government finances; (o ) ensur ing that t he Local Self-Go vernme nt uses resource s in ways that give bes t valu e fo r mone y, and also ens ure th at pu blic assets are put to bes t possib le use; (p) mana ging expenditure con sistent with the level o f revenue generated; (q) ' formula ting budge t in a rea listic and object ive m anner w ith due regar d to the gene ral economic o utloo k an d rev enue prospe cts, and m inimize devia tions during the cour se o f the year; (r) ensuri ng c ollecti on o f dues an d taxe s in an ex peditiou s manner; (s) ensur ing dis charge o f curren t liab ilities in a timely m anner, (t) adopting appropria te tech nique s f or measur ing th e cost of file services provi ded b y the Local Self- Gov ernm ent 5. (1 ) The Local Self-Go vernme nt shall take suitable measures to ensure greater transpa rency in its fisca l operati on and in the preparation o f the annual budget . For thi s purp ose every Local Self-Government shall ensure prep arati on and finaliz ation of an nua l’budget for each financ ial y ear com mencin g from 1st April and en ding o n 3 1st March. (2 ) Prov ision shall b e ma de fo r meeti ngs at su ch i ntervals and»wi th citizen forum s as may be pr escri bed t o revie w th e operation s and finances off the L ocal Self-Governmen t. (3 ) In particu lar, and with out preju dice to the genera lity o f the foregoing provis ions, Local Self-Go vernme nt sh all, a t the time o f presentation o f the annua l budget , disclose in a statem ent in such form as may be presc ribed , - (a ) signif icant change s in the accoun ting standard s, policies and practic es affecting or likely to affec t the computat ion of fiscal indicators; (b ) as far as practicab le and consist ent wit h protect ion of public intere st, th e co ntingen t liabil ities created by way o f guarantees an d th e actua l liabili ties a rising o ut o f executi on o f works b y externa l agencies whe re liabi lity fo r repaym ent i s on the Lo cal S elf-Government; (4 ) The State Govern ment shall ensure tha t such conting ent liabilities are commu nicated to th e con cerned L ocal Self-Gov ernment so that it s hall mak e suffic ient prov ision in its budget . 6. With a view to ensurin g time ly dischar ge o f current liabilitie s special ly paym ent o f salaries t o th e emp loyees, - (i) the Local Self-Gove rnment shall give appoin tment only against posts sanction ed by the State Govern ment and is vac ant and also with laid down rules, procedur es an d orders; (ii ) No new pos t shall be created withou t the pri or concurrence of t he State Government; (ii i) the Local Self-Gove rnment s hall n ot ma ke m ore than one appoint ment again st one vaca nt pos t and shall not mak e appointm ent on leave vacanc y and vacan cy aga inst s uspended employee; (iv ) the letter of ap pointm ent agai nst any vaca nt pos t shall contain the identit y o f the post in the m anner as ma y be p rescribed; THE AS SA M GA ZE TT E. EXT RAORDIN ARY. SE PT EM BE R 6. 20 11 19 95 (v ) the sele ct list prepared for fresh appo intm ent against vacant post or pos ts shall contain names o f p erson s equal to the numb er of vacant posts notif ied at t he time o f cal ling for applications for filling up t he posts; (v i) the Local Self-Government shall not regul arize or upgrade any per son again st vac ant pos t without the sanction o f the S tate Government; (vii) befor e awardi ng for execution o f an y w ork and renderi ng any supply of mater ials and services which create liabilit y on the Local Self- Govern ment, the authoriti es o f th e Local Self-Go vernment exercising delega ted financial power shall firs t issue ad m in is tr a tiv e approval or financia l sanction for the wo rk or the orde r o f supp ly a s th e case may be, in compliance with the existi ng rules, procedures and guidelines and furthe r rules, proced ures and guide lines tha t may be prescribed from time to time; (vi ii) befo re awarding the settlem ent o f Ha ts, Markets, Fisheries , Ghats or any othe r facility of the Local Self-G overnm ent for revenu e earning the laid down rules, procedures and guide lines and further rules, procedure s and guidelines tha t may be prescribed from time to time, shall b e followed; (i x ) the Local Self-Gov ernment shall main tain a regis ter of assets and liabil ities and all docume nts year wise, as prescr ibed under the conce rned Acts and the ru les framed thereunde r. M ea su re to 7. ( 1 ) The State Government Aud it (Loc al Fun d) shall enforce compliance enf orc e with the provisions o f this Ac t and the ru les m ade t hereunder, com plia nce to (2 ) The State Governm ent Aud it (Loc al Fun d) may oversee the this Act compliance and a suitable mech anism ma y be notified by the State Gover nment regarding the s ubmission of period ical rev iew reports. (3 ) The State Governm ent shall ensure tha t the Local Self-Government shall comply with the prov ision s o f the releva nt Ac t and the rules relating to budget and the budg et p repar ed is in accordan ce with the Medi um Term Fiscal P lan alrea dy ap proved and va riations, if any, are explaine d. (4 ) The L ocal Self-Gove rnment s hall p repare a budget variance report an d subm it it to the Controlling Auth ority with in such time and in such* , form as may be prescribed. (5 ) The Local Self-Gov ernment shall prep are receip ts and payments accoun t, income and expend iture accoun t a nd a b alance sheet as m ay he pres cribed. (6 ) Aud it o f accounts o f the Loca l Se lf-Gove rnment shall be condu cted by the audit or app ointed under th e relevan t Ac ts an d the R ules and orders , issue d thereunder by the concerned author ity and the report shall be subm itted to the concerne d authori ties w ithin the ti me stipulated. (7 ) The Controlling Authorities shall b e respo nsible to ens ure st rict foll ow up actio n on the audit reports by the Loc al Self-Gove rnment and slackne ss, if any, notice d i n this beh alf shall be reporte d to the State Gover nment for ap propriate ac tion against the Local Self-Governmen t in defau lt. (8 ) The State Government may, by notific ation, constitu te a Local Self- Government Fund Aud it Overseeing Autho rity comprisin g o f such officers and having such powers as may he specified in the notific ation. The Local Self-Go vernme nt Fund Audit Overseeing Auth ority shall submit t o the State Govern ment periodical report on compliance t o audit reports by the Local Self-Government authority, as m ay b e prescribed. (9 ) The Assam Legislati ve Assem bly may by notificatio n, constitu te a Local Self-Government Fun d Accou nts Committee with similar powe rs and functions as tha t o f Public Accou nts Committee o f the Assam Legislative Assem bly to oversee the outstanding audit ‘ paras relati ng to non-complian ce o f this Act. (1 0 ) The State Government may withh old release of fu nds to any local self-government authority whic h fails to furnish accounts to the concerned authority within six month s from the end o f the financia l year. 1996 _ TH E ASS AM GA ZE TTE. EXT RAO RDI NAR Y, SEPlEJVJLBttKO. z u n (11) The Local Self-Government shall introduce and strengthen , appropriate internal audit measures and sustainable computerization programme using appropriate technology. FabUcation of financial document and annual report Offences and Penalties Power to make rules 8. (1) Every Local Self-Government shall publish the Medium Term Fiscal Plan (MTFP), the annual budget, annua l accounts and the annual report together with the certified annual accounts in such mann er as may be prescribed. (2) Every Local Self-Government shall, w ithin six months from the end of the financial year submit a copy o f its annual report together w ith the certified annual accounts to the State Government and the State Government shall cause the annual report together w ith the certified annual'accounts to be laid, a s soon as may be they are received, before the House o f the State Legislative Assembly. 9. (1) Whoever violates any one or m ore of the provisions of section 6 shall comm it an offence which shall be punishable with rigorous imprisonment for a term which may extend to three years. (2) Whoe ver causes financial loss to the authority willfully and with malafide intention, by under assessment or under realizations of revenue due to the Local Self-Government or by incurring unauthorized expenditure shall commit an offence which shall be punishable with rigorous imprisonment fo r a term which m ay extend to three years and / or recovery of the amount of financial loss with interest. (3) A person who abets any o f the offences as aforesaid shall be liable fo r the sam e punishment as provided for the offence. (4) Notwithstanding anything contained in the Code o f Criminal Procedure, 1973 (Assam Act, No.2 of 1974), the offences committed unde r this Act shall be treated as cognizable o ffen cesto be triable by a Magistrate not lower in the rank than a Judicial Magistrate of Firs t Class. 10. (1) Hie State Government may, by notification in the Official'Gazette and after previous publication, mak e rules for carrying out all or any of the' putposes of this Act. (2) All rules made by the State Government under this Act shall, as soon as may be after they are made, be laid before Assam Legislative Assembly, while it is in session for a total period of not less than fourte en days, which may be comprised in one session or in two or more successive sessions, and shall, unless some later date is appointed, take effect from the date o f their publication in the Official Gazette subject to such modifications or annulments as the Assam Legislative Assembly may, during the said period agree to m ake, so however, that any such modification or annulment shall be without prejudice to the validity of anythin g previously done thereunder. Protection of 11. action taken in good faith Application of 12. other laws No suit, prosecution or othe r legal proceedings shall lie against the State Government, any Local Self-Government or any offic er or servant or any person acting under the direction of the State Government or Local Self-Go vernment in respect o f anything done or intended to b e done in good faith under this Act or any rule or order made t her eun der: Provided that before declaring any such action to have been done in good faith as aforesaid, the approval of State Government shall be obtained. The provisions o f this Act shall be applicable in addition to the provisions of any other law for t he time being in force, to the extent they are not inconsistent with the provisions of this Act a id the provisions of this Act shall have effect notwithstanding anyth ing contra ry contained in any other law for the time being in force. T H E A S S A M G A Z E T T E . E X T R A O R D IN A R Y S E P T E M B E R 6 . 2011 1997 Remo val o f 13. I f any d iffic ulty arises in givi ng effec t to the prov isions o f this Ac t, the difficul ties State Governm ent may by order, published in the O ffic ial G azette, as the occas ion may require, do anythin g, whic h appears to it to be necessary to rem ove the d ifficu lty : Provided that no order shall be ma de after the expiry o f a period o f two years fr om the date o f commencem ent o f this Act. Schedule - 1 [See Section 3 (7)] (F ORM FO R P R E P A R A T IO N AN D S U B M IS SI O N O F M E D IU M T ER M FI SC A L P LA N U N D E R S E CT IO N 3) F IS C A L IN D IC A T O R S F Y F Y F Y F Y F Y A . R even ue A cc ou nt 1. Tax Revenues (Details to be indicated) £ L J S 2. N on-T ax Reve nues (Details to be indicated) $ (i) (ii) - 3. P lan Grants from the State Govt. (Details to be indicated) * 4 - 4. Non -Plan Grants from the State Govt. (Details to be indicated) 5. Pl an Grants from the Ce ntre. (Details to be indicated) 6. No n-Pla n Grants from the Centre (Details to be indicated) 7. Total Revenue R ecei pts (1 to 6 ) 8. Revenue Expenditure (9+10) 9. Plan Expenditure 10. Non-Plan E xpenditure (11 to 16 ) 11. Salary 12. Wages 13. Interest Payment 14. Pension 15. Maintenance 16. Others 17. Year- End Debt Outstanding (a+b) (a) Loan from the State G ov t. (i) Principal Amount O utstanding (ii) Interest Overdue (b ) Loan Outside the State Go vt. (i) Principal Amount Outstandin g X (ii) Interest Overdue 18. Year-end Go vt. Guaranteed Debt Outstanding (i+ii) (i) Principal Amount Outstandin g (ii) Interest Overdue s THE ASSAM GAZETT E. EXTRAORDINARY. SEPTEMBER 6, 2011 ________: B. Ca pital Accou nt 1. Capitol Outlay 2. Disbursement of loans and advances 3. Recovery o f loans and advances 4. Other Capital Receipts C. Revenue Deficit (-)/ Surplus (+) D. Fiscal Deficit (-)/ Surplus (+) E. Revenue Deficit as % o f Revenue Receipt F. Revenue Deficit as % GSDP G. Fiscal Deficit as % o f GSDP H. Debt Stock as % o f GSDP MO HD . A. HA QU E, Secretary to the Government o f Assam, Legislative Department, Dispur. GUW AHAH - Printed and published by th e Dy. Direc tor (P&S) Directorate of Ptg. and Sty., Assam Guwahati-21 (Ex-Gazette) No. 593-6004-310-6-9-2011.