Meghalaya Amends FRBM Act; Introduces Quota for Regular Casual Workers

Meghalaya has moved to ease its fiscal space and streamline recruitment processes with a set of key cabinet decisions. The state government has approved amendments to its fiscal framework, relaxed deficit limits in line with central norms, and introduced provisions favouring regular casual workers in lower-grade posts.

Amendment to Fiscal Responsibility Act

The cabinet has approved an amendment to the Meghalaya Fiscal Responsibility and Budget Management Act, 2006. The revision allows the state to raise its fiscal deficit ceiling from 3% to 3.5% of Gross State Domestic Product. This procedural change, aligned with Government of India guidelines, gives the state greater headroom for borrowing to fund infrastructure, welfare schemes and development projects without breaching statutory limits.

Implications of Higher Borrowing Space

The increased deficit limit offers Meghalaya scope to expand capital expenditure and support ongoing programmes in sectors such as roads, health, education and rural development. Additional borrowing can help bridge resource gaps, especially where central assistance or externally aided projects require matching contributions. However, the move also places a premium on prudent debt management, ensuring that higher borrowings translate into productive assets and do not strain long-term fiscal sustainability.

Reservation for Regular Casual Workers in Group D Posts

The cabinet has also cleared an amendment to Rule 6(D) of the Meghalaya Ministerial District Establishment Service Rules, 2017. Under the new provision, 50% of ‘Group D’ posts in the state will be filled from among Regular Casual Workers. This measure recognises the long service and contribution of such workers, offering them a structured path to secure government employment, job stability and associated benefits.

Exam Oriented Facts

• The fiscal deficit ceiling under the state FRBM Act has been raised from 3% to 3.5% of GSDP.
• The Meghalaya FRBM Act was originally enacted in 2006 to promote fiscal discipline.
• Half of all Group D posts will now be reserved for Regular Casual Workers.
• The cabinet decisions were announced by the chief minister, who also holds the finance portfolio.

New Service Rules for Consumer Disputes Commission

The cabinet has further approved Service Rules for the Meghalaya State Consumer Disputes Redressal Commission. The rules empower the Commission to constitute its own recruitment board for appointing staff. This is expected to improve institutional autonomy, accelerate staff hiring, and strengthen consumer dispute resolution mechanisms in the state by ensuring dedicated and adequately staffed support structures.