SHILLONG, Feb 28: On the first day of the budget session of the State Assembly on Friday, the state government introduced the Meghalaya Ceiling on Government Guarantee Bill, (MCGG) 2025 and Meghalaya Goods and Service Tax (Amendment) Bill 2025.
Chief Minister in-charge Finance Conrad K Sangma introduced the Meghalaya Ceiling on Government Guarantee Bill, 2025.
It was stated that the MCGG bill is an Act to provide for the regulation of Government guarantees and other matters connected therewith or incidental thereto.
Its preamble states that whereas it is expedient to provide for the regulation of Government guarantees issued on behalf of the Government Departments, Public Sector Undertakings, Local Authorities, Statutory Boards & Corporations and Co-operative Institutions and for promoting fiscal discipline of the state.
The definition states that in this Act, unless the context otherwise, requires, Government means the Government of Meghalaya and the Government Guarantee includes the guarantee given by the state government on behalf of Departmental Undertakings, Public Sector Undertakings, Local Authorities, Statutory Boards & Corporations, Co-operative Institutions and Other Authorities and Agencies under the Government of Meghalaya.
The total outstanding government guarantees as of the first day of April of any year shall not exceed 10 per cent of the Gross State Domestic Product (GSDP) estimated for the year. The total fresh government guarantees issued in a year shall not exceed per cent of the Revenue Receipts or 0.5 per cent of the Gross State Domestic Product (GSDP) estimated for the year, whichever is less.
According to its statement of objects and reasons, the state government had issued guarantees to Public Sector Undertakings, Local Authorities, Statutory Boards & Corporate and Co-operative Institutions for the last four decades or so.
However, there is no State Act to regulate government guarantees issued on behalf of the Government Department, Public Sector Undertakings, Local Authorities, Statutory Boards & Corporations and Cooperative Institutions for promoting fiscal discipline of the State.
It states that the finance department had issued a guarantee based on a sort of guidelines regarding ‘Government Standing Guarantee for the loans obtained by Public Undertakings and Apex Co-operative Institutions – Guarantee Fee, No.FIN (B) 91/89/53, dated 24.04.1989. The office of the Accountant General, Shillong from time to time had requested for the Meghalaya State Guarantee Act passed by the State Legislative Assembly, as this Act is required by the Comptroller and Auditor General. The Act had been called for via official letters and verbally too.
“The main objective of this Act is to regulate Government guarantees and other matters connected therewith or incidental thereto. While framing the Act, Central Government Guarantee Policy, The Kerala Ceiling on Government Guarantee Act, 2003 and the Mizoram Ceiling on Government Guarantee Act, 2011 have been referred to,” it added.
Meanwhile, Minister in charge of Taxation Abu Taher Mondal introduced the Meghalaya Goods and Service Tax (Amendment) Bill 2025.
The statement of objections and reasons, states that the Central Government acting on the recommendation of the Goods and Services Tax Council, had amended the Central Goods and Services Tax Act, 2017 vide the Finance (No.2) Act. 2024, all the states and union territories with the legislature are required to amend their respective state or union territory Goods and Services Tax Act to enable simultaneous and uniform implementation of the amended provisions, hence the Meghalaya Goods and Services Tax Act, 2017 (Act No.10 of 2017) requires to be amended based on the recommendations of the GST Council to enable amongst other things, power not to recover Goods and Services Tax not levied or short-levied as result of general practice, determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason about Financial Year 2024-25 onward, waiver of interest or penalty or both relating to demands raised under Section 73, for certain tax periods and no refund of tax paid or input tax credit reversed.
Meanwhile, the annual report of the Shillong Smart City Limited (SSCL), Meghalaya State Electricity Regulatory Commission for the year 2022-23, Meghalaya State Pollution Control Board 2021-22 and 2022-23 was also laid in the Assembly.
