The Fiscal Policy Strategy Statement, presented to Parliament under Section 3(4) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, outlines the strategic priorities of the government in the fiscal area for the ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees. The statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures.
The Interim Budget did not outline such a statement. Here's what the government aimed to achieve in its Fiscal Policy Strategy Statement of Budget 2018:
a) To target simultaneously on fiscal deficit and debt
b) To target fiscal deficit as an operational target and to ensure that the fiscal deficit of 3 per cent of GDP is reached by the government by FY21.
c) The central government shall endeavour to follow a declining debt trajectory and the reach a debt target of 40 per cent of GDP, as also to keep the general government debt at 60 per cent of GDP by FY25.
d) Inserting adequately defined escape and buoyancy clauses to determine when the targets defined by the FRBM Act may be relaxed or tightened as the case may be.