Meghalaya Raises Fiscal Deficit Limit, Reserves 50 percent Group D Posts for Casual Workers

Meghalaya Amends FRBM Act; Introduces Quota for Regular Casual Workers

Meghalaya has approved a set of major policy reforms aimed at boosting fiscal flexibility and ensuring inclusive recruitment practices. In a key cabinet meeting, the state government cleared amendments to the Fiscal Responsibility and Budget Management (FRBM) Act and introduced a reservation quota for long-serving Regular Casual Workers in Group D positions.

Amendment to the FRBM Act for Greater Fiscal Space

The cabinet approved revisions to the Meghalaya Fiscal Responsibility and Budget Management Act, 2006, allowing the state to increase its fiscal deficit ceiling from 3% to 3.5% of its Gross State Domestic Product. This move aligns the state’s fiscal parameters with central government guidelines and provides additional borrowing space needed for infrastructure expansion and welfare schemes.

With the enhanced ceiling, Meghalaya can allocate more resources to sectors such as rural development, education, healthcare and road connectivity. However, the government emphasised the need for responsible debt management to ensure that increased borrowing contributes to productive capital formation.

50% Reservation for Regular Casual Workers

In a significant labour welfare move, the cabinet approved an amendment to Rule 6(D) of the Meghalaya Ministerial District Establishment Service Rules, 2017. Under the revised provision, 50% of Group D positions will now be filled by Regular Casual Workers. This is aimed at recognising their contribution and offering job security along with long-term service benefits.

Exam Facts

• Fiscal deficit limit raised from 3% to 3.5% of GSDP .

• Meghalaya FRBM Act originally enacted in 2006 .

• 50% Group D posts reserved for Regular Casual Workers.

• Cabinet decisions announced by the Chief Minister, who also handles the finance portfolio.

Strengthening Consumer Redressal Institutions

The cabinet also approved new Service Rules for the Meghalaya State Consumer Disputes Redressal Commission. These rules empower the body to set up its own recruitment board, enabling quicker staffing and improved efficiency in handling consumer grievances.