Meghalaya Seeks Higher Borrowing Limit from Centre for Development Projects

[00:00:07]Chief Minister Conrad K. Sangma on Friday urged the center to remove or substantially raise the borrowing ceiling for North Eastern states under 16th Finance Commission. Arguing that Meghalaya's strong implementation capacity should be rewarded rather than restricted. Speaking after Union Finance Minister Nirmala Sitharaman laid the foundation stone for development projects worth rupees 1,246 crore in Meghalaya, Sangma noted that the state had earlier been subjected to a borrowing cap of around 3,500 crore despite its ability to successfully execute larger projects. He said Meghalaya had managed to secure and implement projects worth nearly rupees 12,000 crore through sustained efforts and appeal to the center to allow better performing states greater flexibility in accessing development funds. Sangma further noted that while a significant portion of project funding is borne by center, the state still contributes its share ensuring responsible borrowing. He said the state is awaiting a final decision from the Union government on its request.

[00:01:12]>> In the last Finance Commission period, uh in the beginning half, uh the ceiling was not there for the different states of the Northeast.

[00:01:23]As I mentioned to you, 90% of the loan taken is repaid back by government of India.

[00:01:29]And hence, at a certain point in time, uh the ministry felt that there were certain states who were taking more and certain states were not getting as much.

[00:01:41]Uh and Meghalaya happened to be in the ones which was taking more.

[00:01:45]So, therefore, uh the Finance Ministry felt that they should put a ceiling on how much a state can take. So, I jokingly told madam that time that uh you know, that you are penalizing us for our efficiency.

[00:01:58]But she said that, "Look, you don't have to repay back." We have to repay back.

[00:02:01]So, therefore, obviously, we will look at all the aspects.

[00:02:04]So, therefore, at that point in time, there was a a ceiling. I I can't remember the number. Uh I think it was about 7,000 crores last last finance commission now.

[00:02:14]3,500 crores, yeah.

[00:02:16]3,500 crores was a ceiling that was given to us last time.

[00:02:19]But as you know, add up all together the projects that we managed to get up and hook up for ourselves was uh about 12,000 crores.

[00:02:27]So, that's how we worked. We worked very hard and we got that. Uh so, this year we have requested that the that ceiling concept should not be there for the 16th finance commission period.

[00:02:38]So, it's really now up to Madam Finance Minister and to Government of India and to especially to Honorable Prime Minister to decide that.

[00:02:44]Uh we have put in our appeal, our request. Uh because if the ceiling is not there, then obviously, we can pitch in more.

[00:02:51]But at the end of the day, we have to also remember that uh state government still has to pay 28% of the amount. So, it's not that we can keep going unlimited uh into as much as we want. Uh 72% is repaid back or paid by the Government of India. 28% comes on the state government. So, we still need the capacity to be able to pay at least the 28% also. So, it's not that we can go for unlimited projects to the extent that we would want to.

[00:03:17]So, keeping those challenges in mind, uh we are hopeful that uh the ceiling will be much higher than it what what it was last time. And uh the states that are able to absorb and are able to perform better will be allowed to do that in the future.

[00:03:32]So, we have appealed. We're waiting for a final response from ministry.