Patna: Bihar Deputy Chief Minister SK Modi on Thursday demanded that the Financial Responsibility and Budgetary Management Act be thoroughly reviewed so that states get more loans for development works.
The Act, enacted in 2005, was not in tune with the needs of the present situation and for that it was a major obstacle in getting loans, Modi told a seminar on 'Parliamentary Budgetary System' here.
"It is not a proper formula to get loans not more than three percent of the GSDP... if the states are in a position to clear loans, they should get more loans for development," he said.
Even the Madan Mohan Punchchi Commission had suggested that FRBM law required to be reviewed and the limits of loans to be raised, Modi said.