The SIKKIM FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT,2010

GOVERTdMENT
SIKKIM
EXTRAO RDINARY
PUBLISHED BY AUTHORITY
GAZETTE
Gangtok Wednesday 29" September, 2010 No.537
LAW DEPARTMENT
GOVERNIvIENT OF SlKKlM, GANGTOK.
l
NOTIFICATION
27rh September, 2010
The following Act passed by the Sikkim Legislallve Assemlrly and having received the assent of
the Governor on 161h day of September, 2010 ls hereby published for general inlormation:-
No. 15/LD/P/2010
DEfinitions
THE SIKKIM FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2O1O
(ACT No. 15 ol 2010 )
AN
ACT
to provide for lhe responsibliy oi lhe Slate Government to ensure liscal slabilj{y and
susia nablllly through rnainiajning ba ance n revenue account and p anned red!clion ofiiscaLdelicit
and prudent and sustainable debl management cons stent wilh f scal stabllity ihrough imits on
Slate Governmenl's boraowings nclLrding off-budgel borrowillg and achieving greater
transparency in flscal operal on ot the Government and conduct oi iiscal pol cy in a medium terrn
f sca lramework and lor malters connected therewith or incldenial thereto.
8e it enacted by lhe
as fo lowsr -
Short title and
CoInmencement
Legislature of the Slate of Sikklm in the Sixly{irsl Year of the Republlc of nd a
'1. (1) This Aci may be called the Sikkim Frsca Bespons biily and
Budgel NlanagementAct, 2010.
(2) lt extends to the !,vho e of Slkkim.
(3) ll shall come nto iorce on such date as lhe Government may, by
notil callon in the Ollicial Gazette appoini.
2. _ 11s Acl, u_less lhe co-rerr ott erwse reqJ..es. -
(a) "budget" means the anrrual f nanc al statement laid before lhe
Legislative Assembly underartic e 202 otthe Consttulon of lndla;
(b) "current year" means the linancial year precedjng lhe ensuing yearl
(c) "ensuing yeaf' means the J nancialyear lor which ihe budget is
being presentedl
Medium Term Fiscal
Plan to be laid belore
the Legislative
Assembly
(d) "financial year" means the year beg nn ng on the 1"1 day ol April
and ending on 31 day oi March next lo lowingl
(e) "fiscal deficil' Tea-s r.e e,ce:s of, -(i) tota disbursefnents lrom the Consoldated Fu11d of the Slate
(exclud ng repayment oidebl) over total recelpts into the
Consolidaled Fund exc uding the debl receipts during a tinancla
yeaT; or
(i ) loial expendllure from the Consolidaled Fund of the State
( ncluding loans and advances but exclLrding debi repayment)
over own iax and non-tax revsnue receipts, devo ut on and olher
granis from the Government oi lndia to the State, and non-debj
capiia receipts during a financial year whlch represenls the
bo.rowing Tequ rernenls, net ol repayment oi debt ol the Slale
Government during lhe linancial year;
(i) "fiscal indicator" means the measures such as numerical
cell ngs and propodions to gross Siate domesllc producl as may
be prescrlbed, for eva !ation of ihe flscal posiUon oi the State
Governrnent;
(g) " Government" means the Stale Government of S kkim i
(h) " Legislative Assembly" means the Legls ativo Asser.bly ol
the Stale oi S kkim l
(l) " prescribed" means prescribed by rules made under th s Act l
(j) " previous ygar" rneans lhe year preced ng the cunent year.
(k) "revenue deflcit" means the difierence behveen revenue
expendilure and revenue Teceipis i
{ ) "Siate" means the State of Sikktm i
(m) "tola I liabilities" meansthe iabilitles underthe Consoldaled Fund
ol ihe Stale and the Public Account ol the Siaie.
(1) The Governmenl shall, in each Ilnancial year, lay belore the
Legislative Assembly a Medium Term Fiscal Plan along v/ith the
Budqel.
The [,4edium Tem Fisca Plan shall seliorth alhree-year roll]ng target
for the prescribed J scal ndicators wllh specilicaiion oi underlying
assumpUons lelaling lo parameters underylng project ons for receipts
and expendilure and the band ,,\, ihin wh ch they can vary whis
rernaining consistent wilh iargels.
ln particularand wilhout preludice to the provis onscontainedtnsub-
section (2),lhe MediurnTerm FiscatP an shallinc ude an assessment
of suslainab lity relating 10,"
(i) the balance b€lween revenue receipts andreven!e expendture;
(ii) the use ol capilal recelpls including borrowings for generating
producllve assets.
The Medium Term F sca P an sl'tall, lnler-alla, contain :.
(i) the medium lerm llscal objectives ot the Govemmenl ;
3.
(2)
(3)
(4)
(5)
'; \ a_ "\a Lal'o,i o, lre oe-otra-ce o, lhe p,escr Deo tscd no .d,o-J
r rle o e! oLs ) ea. v s.a v s l1e Idrgets cel oul ea i. e., Jr d.. e
i(e ) pe/o narce rr :ne c,rrerr r ear as pe. ,e 5ect e5l,rrd.e-
lr ) a:lalp.rerlo- ecerl E(oroTic r,enos ano,LtLrp pro'pe.l5.o,
groMh and devetopment affect ng Jisca postion ol lhe Government;
( v) the skaleg c priorities oi the Government in the flscat rnatters Ior
the enauing ftnancralyear l
(v) lhe pollc es oi the Government jor the ensulng f nancial year
re ating to taxation expendilure, borrowings and other liab I ties
subbidies lending and investmenls, glrarantees and act v t es of
Public Sector Undertakings which have polentia b!clgelary
lmplicalons and lhe key ljscalmeasures and targets peda;ning
to each ol lhese :
(vi) an eva uationlas to hov,, the cLrrrent potictes of the Government
a.e nconIoIrril,,l/t- r' e.:scatr anJgere-rp,.nc.pl.s reto_r .
seclon d a-d the rsca ob..cuves Set o. I . L e lMootLm -e rn
Fiscal Plan ;
The l\4ed um Term Fiscal ptan shail be in such forrn as mav bep-esc. beo
(1) The Government sha I take appropriale measures to eliminate
the revenue dei c I and conlain liscal delicit and outslandino debt
ro s,sta'naole te,/els.
(2) T,he Government sha I be guided by the fot owing I scal rnanagementp. nciples, namely : -
(a) 10 malntaia State Government debl at prudentand suslalnabl-o
level ;
(b) lo manage guarantees and othercontingeni I ab tties prudenlly,
w,tl oarlic-la. re,e,F,ce ro qra,.ly ano te!e ot sLrc-
liabillies'
c o 6ns-.a lnal oorror^t19s are -seo ro. o.ooLcr.\e purposeJ
dTd a.uur -,at on ot caottai dssels. a-o dro no. app t.d ro
iinance cuffenl expendituTe;
o. ro er,-.e r.at re oo,ic) oectsio.ts o. l-e Govern-ant h.L/e
. . dueregardtothernancialimplicationsonlhelutLtregeaeraiions;
e\ roia, la'.,'e nreg :ryolthe.axr/sre1o, -ni-i.rt1 -gspeca
lrce.r.ves co"ce.sio-s a. d exempnor,,
ll to p"-sLe tar ool,cies v? rr d-e .eJa-o to eco,toT c e. c e, cy
and complance costs;
(g)io plrsue non tax pollc es with due regard to cost recovery
and equity;
(h)lo pursue expendilLtre polcies thal would provlde lmpetus 10
economic groMh, poverty, reduclion and rnproven-tenlln human
welia.ei
(l) 10 buid up a revenue surplus for Ltse in caprta iorrflation and
Fiscall\4anagement
Principles
productive expendilure
(j) lo ensure maintenance of the
Governmenli
physical assets of the
Fiscal Management
Targets
rk ' lo ma''ta'n Iransparenc / o! d'sclo> ng rLllr(ie-t r llornal on
' to o tor, pub' c ro ,crul_ le lhe sldle o' Ihe o lo' c r ra_res
t,r io mrn,-,ze rr o 'i""' _isk associal"d '^ill' Ta'agene.)l o' pubr c
'' .i".,0, -io"',".,.S. uno lne -1,,1'es o'o/d'lg p'br:c goods
and seru cesi
,.,-tn-.65J'"qs6-arqeof cJ''rL''abirles naITP\ n a-nel:
", i" a'- .n." " 
_'r".I;c o-dgel ^ 
lh oLe 'ega d Io l_a gele'a
' ' 
".onot 
a o-,,oot uto rever Le p_osoe'ls ano - n rize
devialions dLlrlnq ihe course oi the year'
5. rIi r_partic-ra' a'ow hoJlo e'-ocelolr ege era'llyo the_oIegong
^r.!istons. lhe Governmenl shall _
irij"n,, -'"'a_-" r.(o-_l bara'co oeo'-ning r'o,t. l\eyear
2011-12;
,ni ;dJce lre'lsca de' clt lo 3 5 oercenl oi'ne esl rdled G'oss
'"'i?i" ooi"".. p'ooLcl in ea'n ol L-e fi-a'cra' year sla't:'o
io]o ioir-rz ano rea'ce lhe ilscal deiiclt to not more than
ini"" p"r"unt ot tt''u 
""timated 
Gross Slate Domeslic Producl
"irf]"'"nO 
oi STst March 2014 and adhere io li thereafter l
r. ' cao Lne tota' ou:sldno'1g guara_'ees \t'f l lr e soec{ ac imI
' r""",i"i".,.c"r"g-o: Gore'n-'"rG-ararleesacr'2000
(21 of 2000) ,
, n, ; '. re LnaL.fe orl,Land'nO deol_GSDP 'dl'o'o 'oI4s a s_sla:nao e
'"" * _ -u';_jrro" (he;oovela gelsolredellclassoe_'r-ed
oi',f'," Co"u "-,"nr ougil' i' g''o".1 L-"'rscdr yea' 2A'''1 2-
Provid"d thut r"uen,,e deflclt and flsca deiicit may exceed the Limlts
toec,'io unier t' s secion dJe io groLro o' g-ounds or Ln'oresee'
.I,,**a_0"."" ''""""es ol l_e Gov^rnne/l dLe lo nalio_a' se'u'it/
;:""ltrii, "^,".*, "rpi;;i 
io ihe condilion ihat ihe excess beyond imits
".=.r 
ol 
"1"--"ii* 
.a,ar,r'es ooes 'o elceed lne ac(ua''s'a cosi
tnat car De allrioJleo (o ll^e ca'a-r 'l es'
Provided furlher lhat the ground or glounds specilied ln the above
n'ou,ro aai. o" p'"a"o oefore t'c _eg sraive AsseroJ ds soo,] ar.-ay'
;":'":;; :";;",;;;./ r"a' s-c; de''|^'r al oL'' I a/ exceed the
aj"oresato ,'r,ts, r,.it' a1 accon_oa_) i'g 'eDoll slai-lg ln' l'\e v exle.ll o'
excess a'd redSo'ls lqe'elor''
6- I I rhe GO\err fenl5ra,' td\e sJ tdole neaSLren Io 6'9 l-e 9-eal''
" ' ' ,,;:;,;;.) :. i,, n."" oo" u'o.s 'r puo'c .-rere)r, '' he
Preparation oi lhe Budget l
Provlded that the Gove'nment shall have the power to reserve^any
ar"f,r'rai"r't"rl"" *lran would adversely ailect ihe inleresl ol the Slale
Exchequer.
,, tn o.lrucura.. a-d .,iL,oJt p ..-o'co Io Il'e ger"rd''lv ol.'l'e
'',;,;;;':;; "' so-'IqeGo/Prr-nP1rs'a'r'arl1at'-neor
,i"-,'-oi'- o' tu a*oel J 'c'o<" r- a slale'lent rr lhe rorr ac
rnaY be Prescribed '
4
Measures for Flscal
TransPalencY
.{
f
Measures to enforce
comPliance
7. \1)
(2)
(3)
\4)
(5)
(7)
(a) the key fscal indicators includi|g lhose mentioned tn section 5 i
(b) the s gnillcani changes n the accounting standarcjs, pollcies
and practices aijecting or llkely to affect the compulal on of
prescr bed i scal lndicators I
(c) as far as practlcab e and consistent wlth proteciion ol pubtic
interest, theconiingent iabilities created by way otgLrarantees.
The Budget and pollcles announced at the time oi the b!dget,
sha I be cons stent wilh obiectives and targets specified in the
Med um Term Fiscal Plan ior the coming and future years.
The lvllnisle.ln-chargeof lhe Depa.lment of F nance sha revlew
every quarler, the 1.ends in receipts and expendiiure in re a|on
10 lhe budget, remedial measures to be taken to achieve the
budgel targets and every hali year place beiore the Legis alive
Assembylheoutcomeof suchrevevr's.Thereviewrepoi(shoud
be in such iorm as may be prescrbed
Whie placing before the Legislalive Assembty the outcome oi
s!ch revievr, the lMinisterln-chargdbl the Depailment oJ Ftnance
sha I make a slatement explain nq -
(a) anydevialion n meel ng the ob gattons cast on ihe Govern ment
under lhis Actj
(b)whethersuch devial on is substanliatand relates to the actiral
or lhe potent al budge@ry oLttcomes; and
(c) the remed a measures ihe Government proposes to take-
Any measure proposed n the course o{ the I nancial year, which
may lead lo an increase in revenue deliclt, eitherthro!9h enhanced
expendilure or oss of revenL.te, shal be accompanied by remedial
measures, which wilL neulralze such increase or loss and such-neasures sha' be clearty n enlored.
j_ ( JSe l1e reve- re del.c 1 a1d'|.sca do,.iL elceed - r.e ca,e
ot !nfoTeseen demands on the iinaIces oi the GoVernmenl
the Government shall dentiiy the nel liscal cost arising due to
nalura ca amily and such cost wou d provide ce ling tor extenl of
non-compiance to lhe speci,ed limlts.
Whenever suppiementary estimates are presented to ihe
Legislatrve Assembly, the Government shal a so present an
accompany ingstatement lndicating the corresponding curtail.nent
oi expenditure and/or augrnentaUon of revenLre to ofisel the fiscal
mpact ol the supplementary esttmates
The Governnent may assign to an independent external agency
the lask ol carry ng out the periodica review lorthe compliance
oi lhe provis ons of th s Act in the manner as may be prescribed.
(6)
powerto makerules 8. (1) The Governmeft rnay, bynotiiicaton in the OflicialGazette, make
rutes for carrying or.r1 lhe prov sions oi lhis Act.
(2) ln particu araad w hout prejudiceio the generalty oi the torego ng
power such rules may provide for alt or any of lhe io ov/ing
rnalers, namely:-
(a) lhe rieasLrres forevaluaton ot Isca ndicatois of lfte Government
underc au,se (i) ol secton 2;
(b) ihe iorm of Medium Term Flscal p an under sub.section (S) of
secllon 3
(c) the iorm ol statement jor disc osure under sub-section (2) of
seciion 6
(d) the form of review repon under sub-section (2) ol Section 7;
(e) Any other matter urh ch ls required to be prescribed not
inconslstent with the provsions ot ih s Act.
Rules to be lald betore 9. Every rule or order made lnder this Act sha I as soon as posslble,
Legislative Assembly afier t is made be p aced on lhe lable of the Leg slative Assemb y and tf
belore the expiry of the sessjon in which il s so ptaced or in the next
sessron, the Leg slalive Assembly makes any modiiicaUon n any such
rule or order, or the Legistat ve Assemb y decldes that the rule or order
should not be made, the rule or order shaLtlhereafter have effect only n
such modifled form or be ol no effecl, as the case rnay be so, however,
that any such modificalion or ann!lmenl shall be wilhoul prejLld ce to lhe
validiiy of anyihln! previously don6 under ihat r!le or order.
Protection of aciion 10. No su t, prosecullon o. other egal proceed ng shall lie against ihe
taken in good faith Government or any ofiicer ol lhe GoveTnmenl Ioianyihing \,!hich is in
goodiaith done or ntendedlo bedone underlhsAclorlhe rules made
thereunder.
Application ototherlaws 11 TheprovislonsoJthisActshalbe n addltion to, and notin derogation
not barred oi, the provis ons of any other lav/ ior the time be ng in force.
powerto remove 12. (1) llanydfilcultyarlsesin qivir,g etfect to the provisons ollhis
difficulties Act, lhe Governmenl may, by order publjshed n the Oifica
Gazette make such provisions not incons stenl wilh the prov s ons
of lhis Acl as may appear lo be necessary or expedient ior
removing the dilficu tyl
(2) Every order made under this section shall be la d as soon as
may be after i1 is made, before Legislative Assembly.
B, K. PURKAYASTHA (SSJS)
L,R..CUM-SECBETAFY
LAW DEPARTI\,IENT
FrLE NO. 1 6(82)LO/P/2010
S,G,P,G, - 537/Gazelte/100 N os./Dt- 29-09.2010.
GOVERNMENT
SIKKIM
EXTRAORDINARY
PU BLIS HED BY AUTHORITY
GAZETTE
Ga ngtok Thursday 213' April, 20'11 xo.-66
LAW DEPARTMENT
GOVERNMENT OF SIKKII\4
GANGTOK
No. 6/LD/P/11 Daledt 2110412011
NOTIFICATION
The {o lowing Actpassed bythe Sikkim Legislative Assembiy and having receivedthe assentot
tre Go,/erlo- or 30'\ day o' Ma.ch 201'ts-.reoyp-olshed,org6leral,n,or.rat.on.-
SIKKIM FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT
{AMENDt!1ENT) ACT, 2011
(ACT NO. 6 OF 2011)
AN
ACT
io amend the Sikklrr Fiscal Responsibility and Budget Managemenl Act, 2010.
Be it enacted by the Legislature ol Sikkjm in the Sixty-second Year of the Republlc of indla as
iollowsr-
ShortTi e 1.
and
Commencement
(1) Thls Act may be cal ed lhe Sikklm Fiscal Responsibillty
Budget L4anagement (Amendmeni) Act, 2011-
(2) lt shall come into force at once.
Section 5
2. ln the Sikkim Fiscal Responsibility and Budget Managtment
(Amendment) Act, 2010, ior clause (d) of sub-section (1) ot section 5, the
following clause shall be subslituted, namely !
(d) reduce debt siock to 55.9 % of the Gross State Domestic Product
(GSDP) within a period ofiive yearc commencing from the year 2010-2011
and ending on 2014-2015, in lhe manner as meniioned below r-
Maxlmum clebt stock as per centum of Gross State
Domestlc Product (GSDP)
2010"2011 68.4
2011-2012 65.2
2012-2013 62.1
2013-2014 58.8
2014-2015 55.9
Repeal and savinq 3. (1) The Sikkim Fiscal Responsibility Budget Managsment (Amendment)
Ordinance,201l (Ordinance No. 1 of 2011)is hereby repealed.
(2) Notwithstanding su ch repeal, anyihing done or any aciion laken under
the Ordinance so repealed shall be deemed to have been laken under
the corresponding provisions of this Aci.
(R.K, Purkayastha) SSJS
L.R --cum.Secfetary,
Law Department.
File No. 16 (82)/LD/P/11
S-C-P.C. " 2oo/ Gazette/ 1O0 CFJ 21.04,201 1
SIKKIM
GOVERNMENT GAZETTE
EXTBAORDINARY
PUBLISHED BY AUTHORITY
Mondav 25ih April, 2016Gangtok
No.1/LD/16
.GOVERNMENT OF SIKKIM
LAW DEPARTME,IIT
GANGTOK
NOTIFTCATION
oaled: 23/04/2016
i
€
EE&-lr.
E
E
F
rha lnllowrno Act oassed bv the Srkdn Legis'ative Asserrbly and hav'ng rece;ved assent ol
tl,. coueinoion zgin oav ol Marcn,2016 is hereoy p-b ished lor ge-1eral inlornat on:-
THE SIKKIM FISCAL RESPONSTBILITY AND BUDGET MANAGEMENT
(AMENDMENT) ACT, 2016
(ACT NO' 1 OF 2016)
AN
ACT
to amend the Sikkim Fiscal Responsibility and Budget Management Act' 20'10'
Beitenacted bythe Legistature ofSikkim in ihe Sixty-sevenlh Year ofthe Republic of India as
1. ('1) This Act may be called ll"e Sikkim F:scal Respo']srbilily and Budget
Management (Arre,]dmen0 Acl' 2016'
(2) lt shall come into lorce at once'
2. ln the Sikkim Fjscal Responsibilily and Budget Managemeni Act' 2010' in
sub"seciion (1) ol seciion 5, '
(1 ) in cla Jse (b) lor tl"e wo'ds' adhere to it thereattel" occurrrng ai the
end , the toriowrrg vlords ' figu'es and brackets shall be suostiuted'
namelY:_
"fiscal deficit largets thetealter shall be as lollows namely :-
li) Flscar deircit be anchored to a1 arnLal l'mi oi 3 percenl of
t ' ir# ii"'"'o"t"slic Proouct The ilexibrrily oi 0 25 perceni
followsi
Shott title ahd
cofimencedent
Amendmant ot
seclion 5
(2)
over and above this for any given year is permissible if debt-
Gross State Dom€siic Product rat o is ess than or equa to 25
percenl jn the Second preceding year
(li) An addliiona borrowing lmit oi 0.25 percenl ol Gross Slate
Domeslic Product !n a g ven year is perm ss ble if the lnterest
paymenls are less lhan or eqLrallo 10 perceni of ihe revenue
recelpis in the second preceding year.
(iii) The hvo options under these ilexjbility provislons can be avaied
either separate y, if any ol the above criteria is iullii ed, or
s multafeo!s y ii both the above stated criteria areiulfilled. Thus,
a maximum fisca deiicit up io 3-5 percert oi Gross Stale
Domestic Product limit is permisslble in any givef year.
( v) The f exib lity in ava ling the addilionalllmit underejiher oilho 1wo
optionsor both wlll be avaiiab e i there s no revenue deiicit ln
theyearinwhich borrowing lmits areto beiixed andthe immedlate
Preceding year.
(v) ll any sanctloned borrow ng limil of 3 percent of Gross Slate
Domestic Producl in any padicr.rlar year is un-ulllised, then the
un.ulilised borrowing amou nl (calculated in rupees)can be ava led
in the iolowlng year but up to iisca year2019-20."
io. clause (d), ihe follow ng clause shall be substituted, namely i'
"(d) reduce debt stock to 19.04 % of the Gross State Domestic Producl
(GSDP) within a period of (10) ten years commencing from lhe year
2010.201 1 and ending on 2019-20, inthe manneras mentioned below:-
Maximum debtstock as per centum of Gross State Domestic Produc't (GSDP)
2010-11 68.40
2011-12 6s.20
2012.13 62.10
2013-r 4 58.80
2414"15 55.90
2015-16 20.63
2016-17 20 0c
2017-14 19.66
2018-19 19.32
201S"20 19.04
(Lakchung Sherpa) SSJS
L.B,-cum-Secretary,
Law Department.
S.G.P.G. -133/ Com.d/cazette /200 Nos./ Dtll8.04.2016.
THE  SUBSEQUENT AMENDMENTS TO THE SIKKIM FISCAL  RESPONSIBILITY  AND BUDGET MANAGEMENT ACT, 2010 (ACT NO. 15 OF 2010) AMENDED AND 
UPDATED UPTO APRIL, 2016

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