Punjab Cabinet Thursdayapproved the rules for implementation of Punjab FiscalResponsibility and Budget Management (FRBM) Act, 2003.
The move will help the state achieve specific fiscal targets within a stipulated time period to avail the benefitof the centre's debt consolidation and relief facility forstates, an official spokesperson said.
The framing of rules was also necessary as the state government had entered an agreement with the Asian Development Bank, under which it would get a loan of USD 200 million (Rs1,200 crore approximately).
On fulfilment of the necessary conditions, the firsttranche of USD 50 million (Rs 316.92) and the second trancheof USD 50 million (Rs 337.06 crore) had already been received by the state, said the spokesperson.
According to the conditions of the agreement for release ofthird tranche of USD 100 million, it was necessary for the state government to make Fiscal Responsibility and Budget Management Rules, said spokesman.
As per the recommendations of the 14th Finance Commission, each state is mandatorily required to enact a Fiscal Responsibility Legislation to realize the desired targets, spokesman said.
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