Section 2: Definitions

Q: What does Section 2 of The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) deal with?

Section 2 FRBM Act pertains to "Definitions". It is part of the The Fiscal Responsibility and Budget Management Act, 2003, a legislation enacted by the Parliament of India. Section 2 of The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) defines definitions. As verified on 19 May 2026.

Q: Is Section 2 FRBM Act still in force?

Yes, Section 2 of the The Fiscal Responsibility and Budget Management Act, 2003 is currently in force across the Republic of India.

Q: What is धारा 2 FRBM Act?

धारा 2 FRBM Act is the Devanagari Hindi reference for Section 2 of the The Fiscal Responsibility and Budget Management Act, 2003. Section 2 of The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) defines definitions. As verified on 19 May 2026.

Q: What is Dhara 2 FRBM Act?

Dhara 2 FRBM Act is the Roman Hindi reference for Section 2 of the The Fiscal Responsibility and Budget Management Act, 2003. "Dhara" means "Section" in Hindi. Section 2 of The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) defines definitions. As verified on 19 May 2026.

Q: How to cite Section 2 of The Fiscal Responsibility and Budget Management Act, 2003?

Cite as: "Section 2, The Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act)" in legal briefs. For academic writing, use the BlueBook format: The Fiscal Responsibility and Budget Management Act, 2003, § 2 (India).

Law on Tips Editorial Board

- In this Act, unless the context otherwise requires, -

(a) "annual budget " means the annual financial statement laid before the Punjab Legislative Assembly under Article 202 of the Constitution of India;

(b) ["fiscal deficit " means revenue deficit, plus budgetary capital expenditure including net loans advanced, minus other non-debt capital receipts.] [Substituted for 'fiscal deficit' means the excess of expenditure, revenue expenditure and capital expenditure including loans, net of recoveries, over the revenue receipts and non-debt capital receipts.' by Punjab Act No. 1 of 2006.] It is, however, made clear that for the purpose of this definition, off budget borrowings shall be treated as borrowings by the State Government, and the expenditure incurred on subsidies due to the enterprises in the power sector whether paid or not, shall be treated as expenditure by the State Government;

(c) "fiscal indicators " means the measures such as numerical ceilings and proportions to gross domestic product, as may be prescribed, for the evaluation of the fiscal position of the State Government;

(d) "off budget borrowings " means borrowings by the State Government or its Agencies which are not reflected in the Budget;

(e) "prescribed " means prescribed by rules made under this Act;

(f) "Reserve Bank " means the Reserve Bank of India constituted under sub- section (1) of Section 3 of the Reserve Bank of India Act, 1934 (Act 2 of 1934);

(g) ["revenue deficit " means the budgetary revenue receipt, minus budgetary revenue expenditure.] [Substituted for 'revenue deficit' means the difference between revenue expenditure and revenue receipts, which indicates increases in liabilities of the State Government without corresponding increase in assets of the State Government.' by Punjab Act No. 1 of 2006.] It is, however, made clear that for the purpose of calculating revenue deficit, expenditure incurred on subsidies due to the enterprises in the power sector, whether paid or not, shall be treated as expenditure incurred by the State Government;

(h) "State Government " means the Government of the State of Punjab in the Department of Finance; and

(i) "total liabilities " means the liabilities under the Consolidated Fund of the State and the public account of the State referred to in Article 266 of the Constitution of India.