The Meghalaya Ceiling on Government Guarantees Act, 2025
The Meghalaya Ceiling on Government Guarantees Act, 2025
The Meghalaya Ceiling on Government Guarantees Act, 2025, establishes a legal framework to manage the financial risks associated with guarantees provided by the State Government. It sets strict limits on the total outstanding guarantees relative to the Gross State Domestic Product and restricts fresh guarantees to ensure fiscal sustainability. The Act mandates risk assessment for projects, requires the payment of guarantee fees by borrowers, and creates a Guarantee Redemption Fund to mitigate potential liabilities. It applies to government departments and state-owned entities, prohibiting guarantees for private individuals or companies, thereby protecting public funds from excessive exposure.
- 1. Short title and Commencement
- 2. Definition
- 3. Ceiling on Government Guarantees
- 4. Restrictions on Government Guarantees
- 5. Government Guarantees should not be allowed for creating direct liability / de-facto liability on the State.
- 6. Guarantee Fee
- 7. Guarantee Redemption Fund
- 8. Responsibility of the Administrative Department
- 9. Power of Government to make rules
PDF: pending for this language.