Abstract

In Karnataka fiscal forms were brought to the forefront with the medium term fiscal plan (MTFP) during 2000-05. MTFP is an annual document which has fiscal targets and policies for budgetary exercise. The most important thing is, in 2002, Karnataka is the first state to establish Karnataka Fiscal Responsibility Act (KFRA). It is the statuary backup to the MTFP. Karnataka is on a fiscal consolidation path and borrowed money public findings at the time of Economic slowdown. after implementing KFRA. It had recorded revenue surplus and fiscal deficit was within 3 per cent of GSDP. As per the government of India guidelines state devoted to fiscal consolidation path.