New Delhi: The Lok Sabha has passed the Fiscal Responsibility and Management Bill that seeks to put a legislative mandate on the government to eliminate revenue deficit by 2007-08 and to subsequently build a revenue surplus. The Bill was passed by a voice vote.

The Bill was a diluted version of the original one introduced in year 2000 that had sought to eliminate revenue deficit by 2005-06. The dilution was on account of the adoption of the recommendation of the Parliamentary Standing Committee that had studied the earlier Bill.

Replying to the discussion in the House, Finance Minister Jaswant Singh said the legislation will not bring about fiscal discipline unless there is self-discipline of all including the centre and states.

The central government''s total liabilities have reached a high level of Rs 18 lakh crore on which an annual interest liability stood at Rs 1.23 lakh crore, which was 50 per cent of India''s annual revenue earnings, Singh pointed out.

The Bill also provides for greater transparency in fiscal operations, quarterly review of fiscal situation and regulating direct borrowing from the Reserve Bank of India in a bid to check borrowing and control expenditure to effect fiscal discipline.