Cap. 534 Art. 6Objectives. Stability, Coordination and Governance.

The objectives of fiscal policy shall be, but not limited, to:

(a) achieve a balanced general government budget over the economic cycle;

(b) maintain the public debt at sustainable levels over the medium and long term;

(c) ensure and enable access to the broadest possible investor base for Government borrowing at the least possible cost over the medium to long term, within the public debt;

(f) maintain the balance between revenue receipts and the revenue expenditure;

(g) ensure certainty and predictability in the level of tax rates and composition of the tax base;

(h) ensure that, as far as is reasonable and practicable, Government borrowing is used for productive purposes and the accumulation of capital assets, and not to finance recurrent expenditure;

(i) manage Government guarantees and other contingent liabilities prudently with particular reference to the quality and level of such liabilities;

(j) maintain the integrity of the tax systems by ensuring that special incentives, concessions and exemptions are kept at the appropriate level;

(k) pursue tax policies with due regard to economic efficiency and compliance costs;

(l) pursue non-tax revenue policies with due regard to cost recovery and equity;

(m) pursue revenue and expenditure policies that would support economic growth, social equity and the general well-being of the population;

(n) build up a revenue surplus for use in capital formation and productive expenditure;

(o) disclose sufficient information to allow the public to scrutinize the conduct of fiscal policy and the state of the public finances;

(p) ensure that Government uses resources and public assets in ways that give best value for money and in the best possible manner;

(q) minimize the fiscal risks associated with the running of public sector undertakings and utilities providing public goods and services;

(r) manage expenditure consistent with the level of revenue generated;

(s) formulate budgets in a realistic and objective manner with due regard to the general economic outlook and revenue prospects, and minimize deviations during the course of the year;

(t) ensure the discharge of current liabilities in a timely manner.

(a) the requirement imposed by article 8, and

(b) the requirement imposed by article 9, which derive from Articles 3 and 4 respectively of the Treaty on Stability, Coordination and Governance, are complied with.

(2) The official forecasts shall set out the data required to assess whether the requirement specified in sub-article (1)(a) is complied with.