ABSTRACT:
Chhattisgarh State had enacted "The Fiscal Responsibility Legislation Act" on 25th September 2005. The basic objectives of this Legislation Act 2005 were to reduce revenue-deficit and fiscal deficit to zero and 3 percent to its Gross State Domestic Product up to year 2008-09 respectively as per laid-down by Twelfth Finance Commission. The State has achieved the targets and become to entitle for "Debt-Swap" and "Debt-Write-Off". The State has also increase the Tax/ GSDP ratio more than Central Government and reduce the non-development expenditure and increase the economic & social welfare by enlarging the development expenditure in the state. It witnesses the Good Financial Management of the Chhattisgarh Government. How these targets are achieved through Revenue-Management, Expenditure Management, Debt-Management and Fiscal Deficit Management, it is a vital and crucial issue. This issue is explained detail in this paper.