The state Cabinet has approved the amendment of the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act, 2006.
After the meeting on Tuesday, minister in-charge power James K Sangma told reporters that the cabinet had earlier approved the ordinance on February 28, for increasing the net borrowing ceiling (NBC) from the existing 3 percent to 4.1 percent of the GSDP.
He said in view of the fiscal stress in the state, it was proposed that the amendment of the MFRBM Act, 2006 should be regularised by a regular enactment.
“The Bill was accordingly approved by the cabinet,” Sangma said.
He informed that the proposed will be for placing before the ongoing budget session of the Meghalaya Legislative Assembly.
Asked, the minister said that as per the Act, there is certain ceiling of borrowing that the state can take in term of availing of loans.
He said that the government needs to borrow to tight over certain commitments or developmental programmes.
“Therefore this relaxation will help the government to break that ceiling of 3 percent and go beyond 3 percent to 4.1 percent so that we can take more borrowings and tight over whatever deficits we may have in bridging gaps for developmental projects,” Sangma stated.