The State Cabinet on Thursday approved the amendment of the Meghalaya Fiscal Responsibility and Budget Management Act, 2006.
Addressing media persons, 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 upto 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. He said that “annually it has to be amended so the particular Act through an ordinance is being amended today.”
Sangma said the borrowing limit will roughly go up to Rs 400 crore.