Outcome of the review of the trends in receipts and expenditure in relation to the budget at the end of the second quarter of the financial year 2006-2007

This mid-year review reports developments in the economy in the first half of 2006- 07, with a particular focus on Central Government finances, outlining the performances in the real sector, economic prospects and the policy issues. The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 mandates a review of trends in receipts and expenditure in relation to the Budget on a quarterly basis. The first quarterly review for the current year was presented in both the Houses of Parliament on August 18, 2006. This mid-year review is also the second quarterly review, as required under Section 7 (1) of the FRBM Act, 2003.