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The Assam Fiscal Responsibility and Budget Management (Amendment) Bill, 2021

The Sentinel AssamBy : The Sentinel Assam

  |  2021-07-13 10:34:41.0

Assam Finance Minister Ajanta Neog presented a Bill in the assembly on Monday that seeks to empower the government to increase the borrowing ceiling by 0.50 percent of the Gross State Domestic Product (GSDP) in order to boost the state's resources to combat the COVID-19 pandemic.

While presenting the Assam Fiscal Responsibility and Budget Management (Amendment) Bill, 2021, Neog stated that the Union Finance Ministry has notified Assam that it would be granted a Net Borrowing Ceiling (NBC) of 4% of the estimated GSDP for the fiscal year 2021-22.

The state was granted borrowing authority based on 3.50 percent of GSDP at the start of the fiscal year 2020-21.

The remaining borrowing ceiling of 0.50 percent of GSDP is set aside for additional capital expenditure by the state and will be authorized based on Capital Expenditure spent by the state in the fiscal year 2021-22.

The decision was made in light of the COVID-19 crisis and to boost state resources to combat the pandemic while maintaining public service delivery standards, according to Neog.

According to her, the state would be able to borrow an additional 0.50 percent of GSDP over and above the 4% GSDP maximum, depending on recommendations given by the Centre and subject to Act revision.

The state Cabinet adopted the modification to the Act to incorporate the requirements during its meeting on June 24.

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