Union Budget 2026-27 Amplifies Fiscal Support for Meghalaya's Growth Trajectory
The Union Budget for the fiscal year 2026-27 has significantly extended enhanced fiscal support to the state of Meghalaya, marking a substantial commitment to the region's developmental aspirations. This strategic move is primarily facilitated through higher tax devolution and increased allocations under the Special Assistance to States for Capital Investment (SASCI) scheme. These measures collectively empower Meghalaya to accelerate its capital expenditure and infrastructure creation, fostering a robust economic environment.
Substantial Financial Allocations Underpin State Priorities
According to the detailed Budget estimates, Meghalaya has been allocated an impressive Rs 9,631 crore under tax devolution. This allocation provides the state with greater untied financial resources, enabling it to pursue its unique developmental priorities with enhanced autonomy and flexibility. The fiscal support from the Centre has demonstrated a sustained expansion over the years. Between 2014 and 2024, the Centre released a total of Rs 69,339 crore as tax devolution and an additional Rs 40,452 crore as grants-in-aid to Meghalaya, reflecting a consistent and growing partnership in the state's progress.
Capital Investment Strengthened Through SASCI Initiatives
Capital investment in Meghalaya has been notably strengthened under the SASCI framework, which provides states with 50-year interest-free loans to bolster infrastructure development. From 2020-21 to 2025-26 (up to January), Meghalaya received a substantial Rs 6,523 crore under this scheme, with annual releases showing a steady and encouraging upward trend. This consistent financial infusion is pivotal for long-term planning and execution of critical projects.
Visible Infrastructure Growth Across Multiple Sectors
The enhanced budgetary support has translated into tangible and visible infrastructure growth across Meghalaya. In the roads sector, significant milestones have been achieved:
- Over 1,156 km of National Highways have been constructed in Meghalaya as of June 30, 2025.
- Under the ambitious Bharatmala Pariyojana, 170 km of National Highway corridors have been approved at a tentative cost of Rs 2,703 crore.
Tourism development has also gained remarkable momentum, with two key projects sanctioned under the Swadesh Darshan Scheme 2.0:
- The Meghalayan Age Cave Experience at Sohra, allocated Rs 32 crore.
- The Waterfall Trails Experience at Sohra, allocated Rs 28 crore.
Additionally, the Polo Shopping Complex in Shillong was inaugurated in July 2025, further enhancing urban infrastructure and commercial activities in the state capital.
Comprehensive Support Under North East Special Infrastructure Development Scheme
Under the North East Special Infrastructure Development Scheme (NESIDS), Meghalaya has been allotted 14 projects worth over Rs 569 crore. Since the scheme's inception, the state has seen the approval of:
- Seven road and bridge projects worth Rs 459 crore.
- 116 other infrastructure projects worth over Rs 1,737 crore.
These projects are instrumental in addressing regional disparities and boosting connectivity and development in remote areas.
Wide Coverage of Welfare Schemes Enhances Social Security
The Union Budget support has further enabled wide and impactful coverage of various central welfare schemes across Meghalaya. As of January 2026, the state has recorded impressive enrollments and disbursements:
- 8.98 lakh PM Jan Dhan accounts opened, promoting financial inclusion.
- 6.28 lakh enrollments under PM Jeevan Jyoti Bima Yojana and 10.9 lakh under PM Suraksha Bima Yojana, enhancing life and accident insurance coverage.
- Loans worth Rs 3,330 crore disbursed under PM Mudra Yojana, supporting small businesses and entrepreneurs.
- 92,500 Atal Pension Yojana subscribers, securing retirement benefits for the unorganized sector.
- 5,830 PM SVANidhi applications disbursed, aiding street vendors.
- 94,000 Kisan Credit Cards issued, empowering farmers with credit access.
- 5.42 lakh rural households connected to tap water under the Jal Jeevan Mission, improving water security and public health.
These figures underscore the deep penetration and success of welfare initiatives, directly benefiting the diverse communities of Meghalaya and contributing to overall socio-economic development.
