Fiscal deficit limit strengthened with binding reduction targets and conditional escape clauses for national exigencies and growth swings.

Amendment mandates that the Central Government limit the fiscal deficit to three per cent of GDP by 31 March 2021, endeavour to keep general government debt 60% and Central Government debt 40% of GDP by 2024-2025, and not grant additional Consolidated Fund guarantees exceeding one half per cent of GDP in any year; it requires prescribed annual fiscal deficit reduction targets through 31 March 2021, permits specified escape grounds, caps deviations at one half per cent of GDP, mandates a fiscal tightening when quarterly growth outperforms by three percentage points, and requires laying explanatory statements and a return path before Parliament.

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