Meghalaya: Mukul Sangma criticises MDA government for increased borrowing limit

Meghalaya Opposition Leader Mukul Sangma criticised the MDA government after they increased the borrowing limit to manage principal and interest repayment, stating that the decision is a 'red flag'. 

Speaking to reporters, Sangma expressed concern over the decision and condemned it stating that the state may be nearing a disastrous future.   

Furthermore, citing an example about being unable to repay bank loans and EMIs due to low earning, he said that frequent borrowing to repay both principal and interest by increasing the space of borrowing is concerning, an issue which was also indicated by the CAG. 

Sangma also added that the decision has been condemned because everyone is concerned about the future of the state and fiscal health. He said that parents cannot borrow and leave behind debt upon their children.

He also alleged the government of adopting a proper modus operandi by deviating from the fiscal discipline, futher stating that the decision reflects lack of sincerity to ensure fiscal discipline as there are multiple illegalities and irregularities across different sectors in the state.

Citing earlier figures, Sangma said that the government needs to follow provisions of the Meghalaya Fiscal Responsibility and Budget Management (MFRBM) Act, 2006 and examine the process properly.