Shillong, Dec 21: The state Cabinet on Tuesday approved the amendment of the Meghalaya Fiscal Responsibility and Budget Management Act (MFRBMA), 2006 which seeks to increase the fiscal deficit to 4 per cent.

Cabinet has approved the amendment to the Meghalaya Fiscal Responsibility and Budget Management Act, 2006. In line with the @FinMinIndia notification, the normal borrowing ceiling of Meghalaya has been increased from 3% to 4% of GSDP.@nsitharaman pic.twitter.com/6RdtvmRG5v

— Conrad Sangma (@SangmaConrad) December 21, 2021

Addressing media persons after the meeting, Chief Minister Conrad K Sangma said the decision was in line with the notification of the Government of India. The fiscal deficit was allowed to be increased to 4 percent by Finance Commission.

“Accordingly, the finance departments in different states have done that so Meghalaya is also amending the MFRBMA, 2006,” he said while adding the fiscal deficit will be allowed to increase from 3 per cent to 4 per cent.

“The proposal is to maintain the fiscal deficit at an annual limit of 4 percent of the GSDP,” he further asserted.