Punjab Cabinet okays rules for FRBM Act

Punjab Cabinet Thursday approved the rules for the implementation of Punjab Fiscal Responsibility and Budget Management (FRBM) Act, 2003.

The move will help the state achieve specific fiscal targets within a stipulated time period to avail the benefit of the center's debt consolidation and relief facility for states, 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 (Rs 1,200 crore approximately).

On fulfillment of the necessary conditions, the first tranche of USD 50 million (Rs 316.92) and the second tranche of 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 the release of the third tranche of USD 100 million, it was necessary for the state government to make Fiscal Responsibility and Budget Management Rules said, a 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, a spokesman said.