SHILLONG, NOV 16: The State Cabinet on Thursday approved the amendment of the Meghalaya Fiscal Responsibility and Budget Management Act, 2006 to increase the borrowing limit of the government by another .5%.
Addressing media persons after the meeting, Chief Minister Conrad K Sangma said last year also the Act was amended and this done because Government of India has allowed different state governments to increase their budget borrowing based on reforms taken by specific states on an annual basis.
“Last year, the reforms that were taken place by the state government in different departments allowed us to increase our budget borrowing limits up to 4% and this year again, based on the power reforms that we are taking there will be .5% increase in the budget borrowing that is allowed,” he said while adding that “annually it has to be amended so the particular Act through an ordinance is being amended today.”
Asked, Sangma said the borrowing limit will roughly go up to Rs 400 crore.
“Every year it is only 3% but they allow 3% to be increased to .5 and another .5% based on specific reforms that the state government do. So this year we are working with the central government and based on the reforms the adoption is taking place and this .5% additional is allowed to be taken by the state government,” he added.
According to him, the borrowing limit was approximate Rs. 900 crore, last year.