SHILLONG: The state cabinet on Friday approved an amendment to the Meghalaya Fiscal Responsibility and Management Act (FRBM) through an ordinance.
MDA spokesperson, James Sangma said the ministry of finance had given a letter to the state after receiving request from states for relaxation of FRBM in net borrowing ceiling from 3 percent of GSDP due to the hardships all the states were facing in managing finances.
The union government agreed to provide additional borrowing to respective states as one time special dispensation for current financial year to help the state in managing the finances subject to the amendment of the FRBM Act.
In line with other states which are relaxing the limit of 3 percent, Meghalaya government amended the act to maintain fiscal deficit at an annual limit of 4.1 percent of the GSDP as special dispensation during the current fiscal year 2019-2020 and the ordinance will be regularised in the Assembly.
