Amendment in FRBM law for only one year : Minister, Oppn walks-out alleging that it would add onto debt and liabilities 

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Shimla, Mar 18
The BJP Government cleared an amendment in the Fiscal Responsibility Management Bill (FRBM) 2005 in the state assembly amidst strong protest and walkout by the Opposition members. The amendment would allow increase in the borrowing limit of the state for the financial year 2019-20. Also read:https://himachalscape.com/govt-presents-a-legislation-to-increase-borrowing-limit-of-state/
Replying to the discussion on the Legislation Parliamentary affairs minister Suresh Bhardwaj said that Government has come up with this amendment with a one time dispensation for the year 2019-20.
Minister said that in the last three years Jai Ram Government has taken Rs 4804 Cr less
loan than the prescribed limit, however in year 2019-20 it exceeded the limit of three percent.
He said that ” HP FRBM Act enacted in the year 2005 was being amended as actual
receipts of Central taxes declined during 2019-20 due to which share of States also got affected.” ” The Government of India has allowed one time special dispensation for additional borrowing to compensate States for lower devolution of Central taxes on 26th February, 2020 subject to amendment in the Fiscal Responsibility and Budget Management Laws.”
Bhardwaj said that State received one time receipts from the Union Government on account of its share of Compensatory Afforestation Fund Management and Planning Authority (CAMPA) Fund credited in the Public Account, which is included in the public debt of the State.”
”To enable the State Government to avail additional borrowing in public interest and to maintain the pace of development, the fiscal deficit could not be maintained at the level of 3 per cent of the estimated Gross State Domestic Product in the financial year 2019-20. ”
The bill has become necessary to amend the Himachal Pradesh Fiscal Responsibility and Budget Management Act, 2005 suitably from lst January, 2020.
Bhardwaj said that the state Government has been able to borrow upto two per cent more than the present limit of fiscal deficit of three per cent of Gross State Domestic Product for the year 2019-20 which compensated it for loss of revenue of the State and helped to maintain the pace of development. The fiscal position of the State will be impacted accordingly, he added.
Opposition members including CPI(M) MLA Rakesh Singha staged a walkout from the
house demanding to send the bill to the select committee but the amendments were passed in their absence later.

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