SHILLONG:
Meghalaya will have an additional borrowing of 0.5 per cent of the GSDP following approval by the state cabinet to amend the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act.
Taxation minister James PK Sangma told reporters after a cabinet meeting on August 9 that the amendment was in pursuance of the department of expenditure under the Union Ministry of Finance instruction that has allowed the state an additional borrowing of 0.5 per cent of the GSDP.
Earlier, states have been allowed an additional borrowing of 0.5 per cent of the GSDP which links to reforms in the power sector.
With 0.5 per cent, the borrowing limit of the state is now 4 per cent.
The amendment to MFRBM Act was approved in the form of an ordinance.