The Manipur Fiscal Responsibility and Budget Management Act, 2005

MANIPUR
.
.
-
....
?
E?X,T
RA
o's
DIN
A
R·v.
P...,UBLISHEQ
BY
AUTJIQ,f(JTY.
•
.•
.
,1·:
-'
.....
No.
127 Iinpifal;
Monday,
A?gust
8,
2005
cs'ra vana
.
17,
1927)
GOVERNMENT
OF
MANIPUR
..
:?
SECRETARIAT:
LAW
&
LEGISLATIVE
AFFAIRS
DEPARTMENT
NOTIFICATION
.Jmphal,
the
8th
August,
2005
·
No.
2/36/2005-Leg/L.-The following.
Act
of the
Legislature
of
Manipur
"'Jlicb received
assent
of
the
Governor
of
Manipur
on
.
3Q..
7-2()05
is
hereby
published
in the
-
official
Gazette.
THE
MAN1PUR -
FISCAL
RESPONSIBILITY
AND
BUDGET
-MANAGEMENT ACT,
2005.
(Manipur
Act
No.
11 of
2005)
An
Act
J«J
·
pr?.vjde
Jor
t:lie
responsibility
of
the
State Govetn_n1ent
to' ensure
prudence
in fiscal
management
and
fiscal
s:taoility.
by
·
achieving,
.
?ufficie}lt
revenue
11:trpih',,
r?d-uction
in
fiscal·
deficit,
prudent
debt
management
consistent
with
_
..
,:
fiwal··&u1tairiability;-
greater
transparency'
in
ff?caf:opJratiorts
of the Govern­
ment
and
conduct
of
·fiscal
policy
in
?,
medhnh
temi
fi??
framework
and
for
matters
connected
th?gwjt,b1.or:incide2'lal
thoreto.''
•··. •:
'
::·.
o)lt
'1it
en?
"':
the
Lei:islatut•-
of
Ma_riip.li-f
,;
th?,
Jj{t_y''?{?t9
Year
of
the
Republic
of
It:i'dia":as:·f6lt6*s'if.....:.
·
.'
'
·
·
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,,Ju.·.,
...
-.1..

2
l.
Short
title, extent
and
ctt1
('ent.--(1)
This Act
may
be
called
the
Manipur
Fiscal
Responsibility
/aii
·.,
daet
Management
Act,
2005?
3'f?1Gl?\?le
9-tth?,L?tate gN1tl?r
-:?,JV!
-
·.
?{
>
i;;?):·>1.f.ij_
(3)
It
shall
come
into force
;?3'?
date
as
the State
Government
may,
by
notification
in
the
officiaf'di?etto,
appoint
in this behalf.
2. Definitions.-4in;hliis
!':,\c\,
?nlesf\lie
:O.&?t?i'f
olherwise
requires-
··--::
..
_:•:!.:_:.,-.")?<:
·.·\
.
'
..
!..
!!..
.
?
.
.:
-?
7-&t
(a)
"budget"
·rh?Aiis'·the
·
Annual
.
Fioal'lcial
Statement
laid
before the
+State
legislattrre
under·· Article
·20r
of"
the··
Constifiition;;:"":
-????-·-
·--
•
•
• •
?
'.
-,
•
•
•
'J
••
(b)
ncurtent
·year''
means" the
ffnancial
year
'
preceding
the
ensuing
y?ar;
.·
>
-::
.::
.
;.
:-.
?--
--
..,,;
.·.
(c)
"ensuing
year"
moans
the
financial
year
for
which
the
budset
is
being
presented;
(d)
"financial
year"
means
the
year
beginning
on
the
1st
April
and
ending
on
31st March next
following;
(e)
''fiscal·
deficit"
means
the excess
of
total
disbursements
from
the
..
·
·
Consolidated
Fund
of
the State
(excluding repayment
..
of.
debt)
.
,
•
.
,-
?-
I.'.
"f'
over
the
sum
of
revenue
receipts,
recovery
of
loans
and
non-debt
capital
receipts
into
the
Fund
during
a
financial
year;
(0
"fiscal
indicators"
means
such
indicators
as
may
be
prescribed
for
evaluation
of
the
fiscal
position
of
the
State
Government;
(g).
"fiscal
targets''
means
the
numerical
ceilings
prescribed.
,in either
'absolutes
(in
Rupee
crores)
or
as
proportions
to the Gross
Domestic
Product
or
other
magnitudes
for
the
fisca!
indicators;
(h)
"guarantees"
means
the liabilities undertaken
by
State Public
Sector
Undertakings
where
servicing
and
repayment
liabilities
fall
on
the State
Government
iu the
event
of
default
by
the
primary
borrower;
(i) "prescribed''
means
prescribed by
the
rules made under
thi!
Act;
•
i
:.
"-
,.
_,
V
·
(j)
''previous
year"
?eans
·the
year
preceding
the
current
?yea.-;·'
...
.
.
.
?
..
-
:
....
·\1d
·
"revenu,i
.deficir"
means
..
!he
amount
of
excess
·
of
revenue
:expendi-
,..
Jure
ov?r. revenue
·;cceipts in.
a
jwap?ial
year;
'
.r
r
-
.. .?
..
,..
..4.
.
'
'•
.
::
.
..;.
(1)
"State"
means
the
State
of
Manipur;
(m)
"State's.
Own
Tax
Revenue"
means
?h?,
total,
?
r?aQa
pf
;jJ(o
·
'
State
elcludi?g
the State's Share
in.
(;?t;?l
'.I'a;o.?;.
.·
.
.J
.
;
,/i

3
.
--<?)
-"?tl\h
revenue
receipts" .means
the
S?te's
ow,a
rev??
r?ipta
.
(both
tax
and
non-ta?)
'and
-?u'rr?nt
transf?rs
fro;
.,b(J
?
_
.,
(comp_ri_siDJ
grants
an? ???te:?
sµ,re
.of
CCllt!•l
t?es);i.
,
••
_::::;,i.>D"l
{'o
>?-·?otlll-
liabilities"
means
the
sum
of the
Iiabilitiea.uader
the
C?molidan
ed
Fund
of
the
State,
and
tho Public
Account
of
the:
iSJato.;?,:
j?
-fiscaf
.-in?nagetncnt
objectives.c-,
The
State
Government
ihall?
;.
(a)
'.:
take
appropriate
.
measures
to
remain
r?verl'fie
.;fj<>sitivo
anti
')build
up:
adequate
revenudurplus
and contain
flie:ftscaHi?ficit>tt
a-
s,?.
nable
level,
and utilize
such
surplus
for
discharging-
'the' HabilitiCJ
.in
excess
of
the
a$1ic,ts
or
for
funding.
capit?l- expenditure;
.
,.......
.
,,
...
,....
..·,
.
(b)
pursue
policies
to
raise
non-tax
revenue
with
regard
to
cost
recovery
and
equity
;
and
(c)
lay
down
norms
for
prioritization
of
capital
expenditure,
and
pursue
expenditure
policies
that
would
provide
iniP.?tus
for
economic
growth.
4.
Piscal.imanagement
principles.c-The
State.
Government. shall
be
guided
i,y
the
f'Qilowing .
fiscal
management
principles,
namely..:-
..
,
...
"
--
.;
'
-(a}
?transparoncr
in
-setting
the
·fiscal
policy
"Objectivcs?-'"th"tt·;implemon-­
tation or
public
policy
and: the
publication
-of
fiscaJ··information
so
as
to
enable the
public
to·
scrutinize tfie
condtictJ
of fiscal
policy
and the state
of
public
finances;
(b)"
stability"
.
and
predictability
..
iii
liscal pofify
·
mak1ng
-?
p'r?s
.a?d
.in
-
..
the
way
the
fiscal
P?licy
impacts
the
economy;
.:.
(c)
---
r'e:fponsioility-'
"in'
-
the
management
of.
'piiblic
'firiances/
including
-·
':
·fo.tegfity m·'budgel
foniulatioi:i;'.
'
..
,;
.
?--·./•
(d/'rairne? to- ensure
th,?f
-p??\?/d?ci?1??-?f
,''t1i?"sta?e
Government
v-': ha?e
.
d?e-
regarl
to
.
ilieii-'
--ti?ncfal'
-i?-plic?tio?;
on
·_future
genera-
•
•
•
,I
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•
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,
••
•
'.
;.
·.
,.,,
..:.
•.
J.
-
.
_,.
'.
-
-?
'··
tions;
and
,
.
..
,
(e)
efficiency
in the
design
and
implementation
of the
fi?
policy
.
'
and in
managing
the
·assets
ind'
liabilities''' ar
the
ptlblic
sector
balance sheef.
..:_.
_,J.-
... ·-
__
-
Fiscal'
1t0licy_
stat-cmcn.t
_
to
.
be
laid
before.
·the··,
Le:gislatitre.-The
State
-Oovehmlent
:shall,
;Ul
e_ach,
!
,1inancial
_y<!a,r?-
lay
before
!}m1.,..-Hoo?
of the State
.Legislature.
the
·
fQllowillg
.
statements
of
fiscal
poljcy
_
aJong_
with tho
annual
·budiet.
·namely
:-:-
:
· ·
·
·
·
-?·
·
·
·
·
·
·
·
·
..
-
.
,
...
(a)
Medium-term
Fiscal
?9,li<:Y
·•
Statement
;
and
(b)
Fiscal
Policy·
Sftatety
Statement.

n
:?'
Medium
T?dn
•
'pJfcal
Pbiicy
'Sr:ate?ent'...:::(t).
11':fir?M?him
tlrm Fiscal
?
S'tate1nent
sbaI'l
set
fortii'
in
such
f
orin
as
may
be'
p?scribed,
the
fiscal
management
objectives
of
the
'State;
G'overiiiheaii···
an'd
:three-y?ar·
rolling
targets
for'
?e
Fe•cribed·
fiscal fodica1oi51'
witk
dim·
onunoilitidn of'
·tl\e'
,,.ndcrlying
assumptions.
'.
,
(2)
X.. partic.war
and
.
without. p_rejudjf,C_
)P
fM,
;P,f.?vj.,i.Qns-
9,P!!tai?
in
?g?ion
(1,),
the
Me4ium
T?on
Pis?l P,91icy
..
?W.QlC.Ilt.
ll\lall
?cludo
tho
v?jous
c!,Ss?mpt?o?
??ind
·
tile
fiscal
i:ncH?tors
?
an
?St:Dcnt
of
sustain-
-#ility
relating
·
t-o
:?
.
,
.
(a)
·the
balance'
between
revenue·
receipts
and
revenue
expenditure;
.
(b)
the
use
.
of ?apital
receipts
in?ludi?J.?
borrowings
..
for
.
1cnerating.
productive
assets;
·
·
'
'
(
c)
the estimated
yearly
pension
liJ,bilities
worked
out on
actuarial
basis;
for
the
next
ten
years:
.
.
.
.
Provided
that
in
-case
it ·is
not
possible
to
cak:niatc
the
pension
liabilities
on.
actuarial
basis
during
:the
·period
of
nrst
thRo-yoaa
:aft«
.
the
coming
into
fosce
qf
this
Act,
the
Sta-te
Go;v,?t
?y.
during.
·
that
.
period,
estimete
the .pension
liabjJities
-by
?1c,ing
forecasts
on
tho
?s?
pf
tread
jl':011.(tb
.rJ!tes.
7. Fiscal
policy
strategy
statement.s-The
Fiscal
Policy
.Stni,tcgy
Statement
iball
be in
such
form
as
may
be
prescribed
and shall
contain,
inler
alia,
(a)
the
fiscal
policies
of. th!'
State Government
.
.ffJf
the
ensuing
financial
.
year
relating
to
revenue
receipts,
expenditure,
borrowings
and
other
liabilities.
lending,
investments,
other contfogent
iiabilities,
user
.
tharges on
public
gdods/iitmtfes
and
description:
cif
otl:ier
activitica,
.
such
as
.
guarantees
artd
;activities
of
p"llblksecfor
uhdertakings
which
have
potential
budgetary
implicationa;
..
-··
.
(b)
the
strategic
_:pr.i.ori?jes
?f
the
.
S,?at?
Oovernmfnt
lD
the fiscal
area
for
the ensuing
financial
year;
·
(c)
the
key
fiscal
measures
and
the
rationale
for
any
major
deviation
.
.
,
im. 'fiscal
measures
pertaioiog
to
re:9crwo::toeeipts.
·stulf;icly
..
,t.tpe,idituro
•.
..
,-,boc,towiligs·1and<user
cba:r-,ges
oa
ptiblic
·:gt>O'ds/•llilitiea:;·•and,,
,
·
. .
•
.
.
'
:
? -
:
.
:
..
'
--
I
j
·;
.-
••••
I
,,t
.
.
.
.
.
f
'(d)
-an
ev?tuatio?
bribe
current
policies
or'tht's1aie·9?v,«r11mint
,Y!f??Jis
the
fiscal
management
principles
set
out
in
section'
,4;·
t'he''fiacal
objectivei
\et•
out
:iri'
the
?etliurif'T?rm
'Pii8i-f
Micyfilatement
in
sub-section
1
of
section
6 'anti
rftsil?al"
targets''
sct·0111
in;
section
I.

f·
::
1?:·
Fid"•·ta,o,t,
.
.-.(?)
llhtr.State
Ge.vcl'Q·D¥JDt
Jn?Y
}?tcscrjbe:
auchtarscta
u
may·
be
'dee'me1
..
neces?ary
for
giving
effect
,ta-
the
fiscal
JI]aR?gcr:nc:pt ?b??h'?•!r_,
;.,
?;·
hat.
?artic??;,.
?n?
with?ut
prcjudi?c
:·to
the
g?ocraiii{'
of
l
h?;i??egoinj
Jr.ovisions,.
the
State.
G?:wcrnm?nt,
.•halb-
(i)
·
itiive
··
to
remain.
revenue.
surplus;
by
Jijaking
.
a.
balance
in
rovcnv.
.•..
·*:·
.
"receipts
arid
,?cnditure
acd
build
URfurt?cI
_su1?u?;
(li)
strive.
t6
;·brini
do
Wi'l
fi?cal'
'deficit to'
3
%'
'of
lGr.ogs. State;
Domestic
n.1b
i,
d
..
u''c-t·',
,:,
·
rr
,:
.....
;.
(iii)
limit
the
amount
of
outstanding
Goverament
guarantee? aa
per•t?kt
provisions
of
the
?anipur
Ceiling
on
State
Government
Guarantee,
••
J
.
.
-.
.
.
:.·
,.
•
'
' '
•
•
,·
!' /
/'
...
,
Act,
2004;
.·
.
.
.
. .
.
.
·
..
.
.
- !
.
;
.
,.-_\.-;
.
'
.
.
.
;
·,
.,
'
(iv)
,
follow 'a
recruitment
a?;-w,g?
policy.,
in
·11:
mann?
sµ?h th,t
tho·
total·
salary
bill ret•Cive
to
revenue
expenditure
excluding
.
intcfest
'
•
t'
•
'".''
,.-
.··
I
payments
and
pensions
does
not
exceed
.3?,
per
cent:
-?
.
·.·
.
;
'.
.
.
'
'
.
;
'..
.
'.
Provided
that
revenue
surplus
may
not
be
able
to
be
maintained
or/and
fiscal
deficit
may,?exceed
the
·limits
specified
under
this
section
due
to
g,rpu?d
M
t;roundg
of unforeseen
demands
on
the finances
of
the
Sta?c;,:
Government
arising
out· of national
.security
or·
namral
calamity
.,i,ncludiog
famine
·relief
tr
such
other
exceptional
circumstances,
beyond
the
control.
of
the State. Government
Provided
further·
tha'i
a
statement
iii
respect
of the:
ground
or grounds
apecificdr.
iri
tfie
.
first
proviso
shall
be
placed
before
the·
House
of. the
Legislature,
ai··soon
a?;;may
be? after
such
deficit
amount
exceeds
the.
aforesaid
targets
or/
and
the.
revenue
surplus
is
not
maintained.
9. Measures
for
fisca
1
transparency.s-f
l
)
The
State
Government
shall
take
?mtable.
measures
to
'ensure
.
greate{
'frans.parency
)n
jirf
_fiscal
operations
and
?nimiz?,
as_
far
·?
prJcticabi?.
in
.
the
pu'plic
'ii;iteres?,
secrecy
in.
the
preparation
of
the
Budget.
·
·'
·
(2)
In
particular,
and
without
prejudicr;,
to
the
geneq1lity
of the
foregoing
pr?visi?n/
tilt
?cifo
'Government iiia1l,
at toe
time
?:p?tnt10n:ofthe
Midget,
rl?:i'ite
<'(J1scfo?reS'· b'ii
·
the'
·_following
·.
afong·\vit'b
detailed
information;
·.m
suclr'form
-"i·?·,1be·
;pr?s,ct?t7d:,.
•<
'
,
,
:
·
.
;;_
·
.,
.ifrr
·.d
.••
?L::,:i,,T
,
,
·
-·.''·rru,H(a)'.!liif£1cals?
of
l:dtia-hge,
1
ftlei,
?griificaii.( ·chlln?-.:1
it\'1;1
tbthaecounting
!
:,1'.
1oiiadtlairds;iq:1C!JJici·es
and·
·prllcUtes:
:affeict#m,t
QT!
li4J!i?;''
tq·.ia???
the
comput!tion
of
p)escribe.o.
.Jisqal,
in4tGa.tor!\;
,4
i
1
-.
..
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.
,
·i,
·;
;
7
'!·
?tsf-.dot41la
nf
·edfniwi?·;'hf.
W.?li.hf'I
W"-JS;
a?Ei· fW,aµ,
...
:had??pc?pvcr­
?rafts:•avaikxl
',of,,
f1091
c:thc
·R??,a4tt?; '.Oii6'di?;,,;
:,rlJ
i.
,)

_,
:>i..
t.l{J}'?hVltebcvi!?·
·
tne
State:
·Oo,vernnreht
1.1Hdw.tak«.S
•'9
_
,
?Tl
ditiGMlly_
1i
and
subUadtfilly
repay"tfie
·
principal
·it?unt·
and/or
pay
the
interQSt
of
aj.Ytff??
tfp.l_?nt#y,
it
has
t(). r?flect
suc_h
liability
as
the
borrowings
of
the
State
.
.
,..
.
.
...
• •
.
·'
:.·
.J• ?).
;_:.-: '.
'··
7·
;
'
-
:-·.:
..
-
'
..
,
;
•.
.
..
1
•.
-:
.
•..
.
.
.
..
10.
Measures
to
enforce
compliance:::..:c1y'T6c
'Minister-in
ehar?
tif,,
lftt
?p!tifirieht'.·bf
·
Finance
(hereinaftef'rcferr.od··.to:
as.
Miaiqoro0fr1Pinit'1ce)
shall
review.
every
·i1llk1for,
the
'ttonds
'In;
receipts
ada
?rilllitue,,Jtt.•:;l!elation
to
the
biiqn·,(dsthnatcs:
and
·pla?
befor?·:;
we
?
of,
?gisfat_wc.,
.•
Jhc;
q-q\c<>mc
of
such
reviews
in
the
next
session. The
review shall
'also
G'>Pff!W
1
statemen!
on
_'M!Yi?pµ.
il).-.?.Hgqts,
if
.ap,y.
-
o:-:;t_H."i._.
:'·_
,:·?=';
•
._.:
•
.
·.··
·
,
....
,
,--?
_
.
_
_
_
•
...
(2)
Whenever
there
·
is
either
shortfall
iri
revenue
or
6CCSS
of
expenditure
o".er
the
intra-year
targets
mentioned in the
Fiscal
Polk:,.-=stratogy
Statement
Br'
the
rules
made under'
this'!
Xct,>the
Stat•
Oo11iftnment
ahalLtilke
appropriate
tii?:i.Iutes
't6t-·tricteasin1··?ehuc
afid'/or
0ro1-
1iMluci:i11a
the
espenditure,
including
curtailment
of
the sumi
a;uthorized to
be
paid
and
-
.
appliod
froJD out
of the
Consolidated Fund of
the
State.
·-.
.
Provided
that
nothing
in thi5
·
suliH1ection
lihall
apply
-to
the
uponditUID
charged
on
the
Consolidated Fund
of the
State
under claus-e
(3)
of Article 202
of the
Constitution
or
any
other
eipe>ilditure,
which is
.required
to
be
incurred
under
any agreement
or
contract/
which
cannot
be,
p:oritponed
or
cunailed.
.
(3)
Any
measure
projosed
in the
course
of
the,
financial
year
a,.
which
may
lead.
to
an
increase
in
fCV¢nue
deficit,
either t}J.rouah
increased
CfJ>COOitun:
or
loss
of
revenue,
shall
be
aecompanied by
a
statement
of
remedial
measures,
proposed
to
neutralize
such
increase.or
Joss
and such
statement
shall bo
placed
before
the
House
of
Legislature
while
socking approval
of Revised
Estimate.
_
.-
(4)
The
State
G?v?rDIJl!mt
JD?Y?
j(
c::l?r?
so,
set
up
an
agency
or
body
i?d,ep??dent
of·
Jh?
Stato
G?v9rn'lll??t.
.?.
rcyjew
the
compljarico
of
-
the
provisions
ofthis
Act
and
table such·
reviews
in·\
the House
or
Houses of
th6
State
Legislature.
·
ll
..
Pcnnr to
mak-c-,ml0$.-{l}
The
-ij?tc
Oo.vi:;rnlllPQt
1+li1l•
?f
nofifica,tion
in
the Oftu=ial
Gazott.,,
?ate.
rule,
fof
?ing
Olft
th,;.
pro,visiQRJ 9(Uus
?!.t,
(2)
In
particular,
and
without
prejudice
to
the
gcneraHty'
()f-thc
fcdlbint
power,
.such rulea
may
prqviJjo. fur?
Off4D:Y
·pf?·
foUqwi?
m!JJtei;?,inameJy­
(tt
'
the fomt
·
of
M edi,trn
·
1'erm
Fiscal
Policy
Sllatimlent.
imludin
I
the
targets
for
the
fiscal
paramekin,'-
under
-tioa
"o;
th?
form
of
the
Fiscal
Policy
Sttategy
..
Statement
ulldor.sq:,tion
7;
the
f'orins ror
disclosure
under
sub-section
(2Jof
IOCtioll'9;
----------

7
'(d)
tho
moasurcs
to
enforce
compliance
;
(c)
the
manner
of
review of
compliance
of
the
provisions
of
this Act
-by
the
i.Ddepeadcmt
agency
under
section
10;
and
(f)
any
other
matter
which
is
required
to
be,
or
may
be,
prescribed,
12.
Rules
to
bo laid before
the
State
Legislature.-Evcry
rule
made
under
thii Act shall
be
laid, as soon
as
may
be after
it
is
made,
before
the House
of
the
State
Legislature,
while
it
i• in
session,
for
a
total
period
or
not
leu
than
fourteen
days
which
may
be
comprised
in
one
session
or
in
two
successive
-icssioas
and
if,
before the
expiry
of
session
immediately
following
the session
oc
the
succession
sessions
aforesaid,
the
House
agrees
in
making
any
modifica­
tion in
the
rule
or
the
House
agrees
that
the
rule should
not
be
made,
the
ru1e
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.
13.
Application
of other
laws
not barred.-The
provision
o(
this
Act
shall
be
in addition
to,
and
not
in
derogation
of,
the
provisions
of
any
other
law
for
the
time
being
in
force.
14.
Power
to
remove
di:fficulties.-(1)
If
any
difficulty
arises
in
giving
effect
to tho
provisions
of
this
Act,
the
State
Government
may,
by
order
published
in
the
Official
Gazette,
make
such
provisions
not
inconsistent
with
the
provisions
of
this Act
as
may
appear
to
be
necessary
for
removing
the-difficulty;
Provided that
no
order
shall
be
made
under
this
section after
the
expiry
-0f
two
years
from
the
commencement
of this
Act.
(2)
Every
order
made
under
this section
shall be
laid,
as
soon
as
may
be after
it
ia
made,
before
the House
of
the
State
Legislature.
A. SUKUMAR
SINGH,
Secretary (Law),
Govt.
of
Manipur.
Printed
at
tho Directorate
of
Pta,
&
Sty..
Govt. of
Manipur/30S-C/8-8-200S.

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