The Meghalaya Cabinet has approved an amendment to the Meghalaya Fiscal Responsibility and Budget Management (FRBM) Act, 2006, paving the way for the state to expand its fiscal deficit limit in line with central government guidelines. The revision will allow the state to raise its fiscal deficit ceiling from 3 per cent to 3.5 per cent of the Gross State Domestic Product (GSDP).
Officials said the move aligns with the Government of India’s framework for fiscal flexibility and will enable the state to undertake additional borrowing to support development and infrastructure requirements. The enhanced fiscal space is expected to assist in financing ongoing projects and strengthening public investment without breaching national fiscal norms.
The amendment will come into force once it is formally passed in the Assembly.
