HT Bureau
GUWAHATI, Nov 16: Meghalaya chief minister Conrad Sangma
on Thursday said that the Cabinet has approved the
amendment of the Meghalaya Fiscal Responsibility and Budget
Management Act, 2006.
Taking to X, he stated that the Act was also amended last year
as per GoI’s permission to allow states to increase the budget
borrowings based on reforms taken by states on an annual
basis. Last year based on the reforms taken by various
departments, our borrowing limit was increased by 4% and for
this year, based on the power reforms there will be 0.5%
increase in the budget borrowing.
The Meghalaya Fiscal Responsibility and Budget Management
Act, 2006 makes the state government responsible for fiscal
prudence, stability, and efficiency.It also aims to achieve fiscal
consolidation and further aims to generate revenue surplus.
The act aims to improve investment in social and economic
sectors.
The Fiscal Responsibility and Budget Management (FRBM) Bill
was introduced in the Indian parliament in 2000 by the Atal
Bihari Vajpayee Government. The FRBM Act was passed in
2003.
