Section 11 of Andhra Pradesh Fiscal Responsibility And Budget Management Act, 2011

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Measures to enforce compliance - (1) The Minister-in-Charge of the Department of Finance (hereinafter referred to as Minister of Finance) shall review, every quarter, the trends in receipts and expenditure in relation to the budget estimates and place before the House or Houses of the Legislature, the outcome of such reviews. (2) Whenever there is either shortfall in revenue or excess of expenditure over the intra-year targets mentioned in the Fiscal Policy Strategy Statement or the rules made under this Act, the State Government shall take appropriate measures for increasing revenue and/or for reducing the expenditure, including curtailment of the sums authorised to be paid and applied from out of the Consolidated Fund of the State. Provided that nothing in this sub-section shall apply to the expenditure charged on the Consolidated Fund of the State under clause (3) of article 202 of the Constitution or any other expenditure, which is required to be incurred under any agreement or contract, which cannot be postponed or curtailed. (3) (a) Except as provided under this Act, no deviation in meeting the obligations cast on the State Government under this Act shall be permissible without approval of Legislature: (b) Where owing to unforeseen circumstances, any deviations is made in meeting the obligations cast on the State Government under this Act, the Minister of Finance shall make a statement in the House or Houses of Legislature explaining, - (i) any deviation in meeting the obligations cast on the State Government under this Act; (ii) whether such deviation is substantial and relates to the actual or the potential budgetary outcomes; and (iii) the remedial measures the State Government proposes to take. (4) Any measure proposed in the course of the financial year, which may lead to an increase in revenue deficit, either through increased expenditure or loss of revenue, shall be accompanied by a statement of remedial measures, proposed to neutralise such increase or loss and such statement shall be placed before the House/Houses of Legislature. (5) The State Government may set up an agency independent of the State Government to review periodically the compliance of the provisions of this Act and table such reviews in the House or Houses of the State Legislature. 1[(6-A) The total value of capital works sanctioned, other than Stage-1 sanctions, by any Department in a financial year under the appropriate Head of Account shall be such that,- (i) the cumulative value of sanctioned works including spill over commitments shall not exceed three times of budget estimate for the corresponding Head of Account for that year; and (ii) the total value of works scheduled to be executed as per contractual requirements; in that year including spill over commitments shall not exceed one and a half times the budget estimate for the corresponding Head of Account for that year. (6-B) The Minister of Finance shall review, every quarter, and shall,- (i) places the matter before the Council of Ministers to evolve a mechanism to bring the sanctions within limits, where the works sanctioned are not in accordance with the provisions under sub-section (6-A) for any quarter; (ii) place the matter before the Legislature, where the works sanctioned are not in accordance with the provisions under sub-section (6-A) for two successive quarters; and (iii) ensure that the works sanctioned are brought in accordance with sub-section (6-A) within two financial years, where the works sanctioned are not in accordance with the said provisions as on the date of commencement of the said provisions under sub-section (6-A). (6-C) If for any special reasons, as may be prescribed, works are sanctioned exceeding the limits in a financial year, the Minister of Finance shall during the year place before the Legislature the reasons therefor and the schedule for restoring it to the prescribed limits.]