The Meghalaya Cabinet has approved an amendment to the Meghalaya Fiscal Responsibility and Budget Management (FRBM) Act, 2006, allowing the state to expand its fiscal deficit limit in accordance with central guidelines.

The amendment permits the state government to increase its fiscal deficit ceiling from 3 per cent to 3.5 per cent of the Gross State Domestic Product (GSDP).

Officials said the revision aligns with the Government of India’s framework for fiscal flexibility and is expected to enable additional borrowing to support developmental and infrastructural needs.

The enhanced borrowing space is likely to help the state finance ongoing projects and strengthen public investment without violating national fiscal norms.

The amendment will take effect once it is formally passed in the

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