Move to improve fiscal scenario
By Our Reporter
SHILLONG: The State Government, in an attempt to improve the Fiscal Responsibility and Budget Management (FRBM), introduced an amendment to the Act which was approved by the State Cabinet here on Wednesday.
The State Cabinet amended the Act by introducing the medium-term fiscal plan with three years’ term rolling target and aiming to maintain the fiscal deficit at 3 per cent of GSDP with outstanding liabilities at 28 per cent for the award period of the 13th Finance Commission.
Talking to media persons after the Cabinet meeting on Wednesday, Chief Minister Dr Mukul Sangma said, “The move has been approved to regulate the functioning of the fiscal health of the State. Introduction of the new clause of mid-term fiscal plan makes it obligatory for every department to maintain the parameter of fiscal deficit at 3 per cent of GSDP and limit on outstanding liabilities within 28 per cent of GSDP”.
It is learnt that the amended Act would be tabled during the forthcoming Assembly session.
This move by the State Cabinet is expected to give a new face to the State Finance department even as the Chief Minister claimed that the State’s financial position has improved over the last year.
“We are in a better position now and we hope that we will continue to do better,” Dr Sangma added.