Meghalaya Amends FRBM Act, Expands Borrowing Limit and Eases Recruitment Rules

The Meghalaya government has approved important policy changes to improve the state’s fiscal flexibility and make recruitment more efficient. The amendments include a higher fiscal deficit limit and 50% reservation in Group D posts for Regular Casual Workers. The government has also introduced new Service Rules to strengthen the Consumer Disputes Redressal Commission.

Meghalaya Amends FRBM Act, Expands Borrowing Limit and Eases Recruitment Rules

Amendment to Fiscal Responsibility Act

The cabinet has approved changes to the Meghalaya Fiscal Responsibility and Budget Management (FRBM) Act, 2006.
The revision allows the state to increase its fiscal deficit ceiling from 3% to 3.5% of GSDP.
This aligns Meghalaya’s fiscal policy with central government guidelines and creates more borrowing space for:

Infrastructure projects (roads, bridges, public buildings)
Welfare schemes
Education and health facilities
Rural and development programmes

Why the Higher Borrowing Limit Matters

With a higher borrowing capacity, Meghalaya can increase capital expenditure and support ongoing development initiatives.
The additional fiscal space can also help the state provide matching funds for central or externally-aided projects.

However, the government must ensure responsible debt management so that borrowing leads to productive outcomes and does not harm long-term financial stability.

50% Reservation in Group D Posts

The cabinet also approved an amendment to the Meghalaya Ministerial District Establishment Service Rules, 2017, specifically Rule 6(D).

Under this change, 50% of all Group D posts will now be filled from Regular Casual Workers.

This policy aims to:

Recognise long-term service of casual workers
Provide a secure pathway to government employment
Ensure job stability and associated benefits for eligible workers

New Service Rules for Consumer Disputes Commission

The state cabinet also approved new Service Rules for the Meghalaya State Consumer Disputes Redressal Commission.
The new rules allow the Commission to form its own recruitment board for hiring staff.
This will help:

Improve institutional autonomy
Speed up recruitment
Strengthen consumer protection and dispute resolution systems

Exam-Oriented Notes

Meghalaya raised its fiscal deficit limit from 3% to 3.5% of GSDP.
Amendment made to the Meghalaya FRBM Act, 2006.
50% reservation in Group D posts for Regular Casual Workers.
Cabinet decisions announced by the Chief Minister (also the Finance Minister).
New Service Rules approved for the State Consumer Disputes Redressal Commission.

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Question & Answer

Q1. The Meghalaya cabinet raised the fiscal deficit ceiling to:
(a) 2.5% of GSDP
(b) 3.0% of GSDP
(c) 3.5% of GSDP
(d) 4.0% of GSDP
Answer: 3.5% of GSDP

Q2. The Meghalaya FRBM Act was originally enacted in which year?
(a) 2003
(b) 2006
(c) 2010
(d) 2014
Answer: 2006

Q3. What percentage of Group D posts in Meghalaya will now be reserved for Regular Casual Workers?
(a) 25%
(b) 40%
(c) 50%
(d) 75%
Answer: 50%

Q4. The amendment to reserve Group D posts for Regular Casual Workers applies to which service rules?
(a) Meghalaya Civil Service Rules, 1990
(b) Meghalaya Police Service Rules, 2012
(c) Meghalaya Ministerial District Establishment Service Rules, 2017
(d) Meghalaya Secretariat Service Rules, 2008
Answer: Meghalaya Ministerial District Establishment Service Rules, 2017

Q5. Which institution received new Service Rules to constitute its own recruitment board?
(a) Meghalaya Public Service Commission
(b) Meghalaya Rural Bank Board
(c) State Consumer Disputes Redressal Commission
(d) Meghalaya Electricity Regulatory Commission
Answer: State Consumer Disputes Redressal Commission

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