Audit Reports
Bihar
Report of 2010 - Report of the Comptroller and Auditor General of India (State Finances) for the year ended 31st March 2010 Government of Bihar
Overview
In response to the Twelfth Finance Commission's recommendations, the Bihar Government enacted its Fiscal Responsibilities and Budget Management (FRBM) Act, entitled the Bihar Fiscal Responsibility and Budget Management (FRBM) Act, 2006. The main purpose of this Act was to ensure prudence in fiscal management and fiscal stability by progressive elimination of revenue deficit, sustainable debt management consistent with fiscal stability, greater transparency in fiscal operations of the Government and conduct of fiscal policy in a medium-term fiscal framework.
The State Government's commitment to carry forward these reforms is largely reflected in the policy initiatives announced in its subsequent budgets. Since its enactment, the benefits of FRBM legislation have been realised to a great extent as exemplified by the fact that the State Government had revenue surplus and the fiscal deficit was well within three per cent of the Gross State Domestic Product (GSDP), except during the current year when it was also within the revised estimate.
The State Government has done well in establishing an institutional mechanism on fiscal transparency and accountability as is evident from the ear-on-year data on the State finances. This data, however, does not give a holistic picture of the status of financial management including the debt position, off-budget liabilities, cash management etc. for the benefit of the State Legislature and other stakeholders.