diff --git a/server/src/com/cloud/resourcelimit/ResourceLimitManagerImpl.java b/server/src/com/cloud/resourcelimit/ResourceLimitManagerImpl.java
index e8805ae8910..5bb770871ca 100755
--- a/server/src/com/cloud/resourcelimit/ResourceLimitManagerImpl.java
+++ b/server/src/com/cloud/resourcelimit/ResourceLimitManagerImpl.java
@@ -582,7 +582,7 @@ public class ResourceLimitManagerImpl extends ManagerBase implements ResourceLim
         }
 
         //Convert max storage size from GiB to bytes
-        if (resourceType == ResourceType.primary_storage || resourceType == ResourceType.secondary_storage) {
+        if ((resourceType == ResourceType.primary_storage || resourceType == ResourceType.secondary_storage) && max >= 0) {
             max = max * ResourceType.bytesToGiB;
         }
 
diff --git a/server/src/com/cloud/vm/VirtualMachineManagerImpl.java b/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
index b0d6378e9e5..afffbec436b 100755
--- a/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
+++ b/server/src/com/cloud/vm/VirtualMachineManagerImpl.java
@@ -64,6 +64,7 @@ import com.cloud.alert.AlertManager;
 import com.cloud.cluster.ClusterManager;
 import com.cloud.configuration.Config;
 import com.cloud.configuration.ConfigurationManager;
+import com.cloud.configuration.Resource.ResourceType;
 import com.cloud.configuration.dao.ConfigurationDao;
 import com.cloud.dc.dao.ClusterDao;
 import com.cloud.dc.DataCenter;
@@ -131,6 +132,7 @@ import com.cloud.storage.dao.StoragePoolHostDao;
 import com.cloud.storage.snapshot.SnapshotManager;
 import com.cloud.user.Account;
 import com.cloud.user.AccountManager;
+import com.cloud.user.ResourceLimitService;
 import com.cloud.user.User;
 import com.cloud.user.dao.AccountDao;
 import com.cloud.user.dao.UserDao;
@@ -231,6 +233,8 @@ public class VirtualMachineManagerImpl extends ManagerBase implements VirtualMac
     protected VMSnapshotDao _vmSnapshotDao;
     @Inject
     protected VolumeDataFactory volFactory;
+    @Inject
+    protected ResourceLimitService _resourceLimitMgr;
 
     protected List<DeploymentPlanner> _planners;
     public List<DeploymentPlanner> getPlanners() {
@@ -428,6 +432,7 @@ public class VirtualMachineManagerImpl extends ManagerBase implements VirtualMac
         s_logger.debug("Cleaning up NICS");
         _networkMgr.cleanupNics(profile);
         // Clean up volumes based on the vm's instance id
+        List<VolumeVO> rootVol = _volsDao.findByInstanceAndType(vm.getId(), Volume.Type.ROOT);
         this.volumeMgr.cleanupVolumes(vm.getId());
 
         VirtualMachineGuru<T> guru = getVmGuru(vm);
@@ -462,6 +467,12 @@ public class VirtualMachineManagerImpl extends ManagerBase implements VirtualMac
             s_logger.debug("Expunged " + vm);
         }
 
+        // Update Resource count
+        if (vm.getAccountId() != Account.ACCOUNT_ID_SYSTEM && !rootVol.isEmpty()) {
+            _resourceLimitMgr.decrementResourceCount(vm.getAccountId(), ResourceType.volume);
+            _resourceLimitMgr.decrementResourceCount(vm.getAccountId(), ResourceType.primary_storage,
+                    new Long(rootVol.get(0).getSize()));
+        }
         return true;
     }