The Nagaland Fiscal Responsibility and Budget Management (4th Amendment) Act, 2021

The Nagaland Fiscal Responsibility and Budget Management (4th Amendment) Act, 2021

This new law regulates the financial liabilities of the Nagaland state government by capping the financial guarantees it can offer. Applying directly to the government of Nagaland, it restricts new annual guarantees to one percent of the state's Gross State Domestic Product from the preceding year. Additionally, it limits total outstanding guarantees to five percent of that same Gross State Domestic Product figure at any given time. This amendment is crucial because it enforces fiscal discipline, preventing the state from dangerous financial overextension while safeguarding public funds from defaults, and thereby securing the lasting economic health of the entire state.

PDF: pending for this language.