Shillong : Meghalaya will increase its borrowing limit by 0.5 percent which is around Rs 400 crore after the state cabinet approved an amendment of the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act.
Speaking to reporters after the cabinet meeting on Thursday, Chief Minister, Conrad K Sangma said that amendment of the MFRBM Act was done because the Government of India has allowed the borrowing limit based on some reforms.
When asked about the borrowing limit in terms of money with this 0.5 percent increase, the Chief Minister said, “the 0.5 percent increase of the borrowing limit will be around Rs 400 crore, and this is allowed by the Government of India because of some reforms.”
He said that in last three to four years, the Government of India has allowed state governments to increase their borrowing limit based on reforms they have done.
Last year also, the Chief Minister said that the Act was amended and it was done because the Government of India has allowed different state governments to increase their budget borrowing based on reforms taken by specific states on an annual basis.
