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 Meghalaya, marking a continued commitment to the state's developmental aspirations. This strategic financial infusion is channeled through higher tax devolution and increased allocations under the Special Assistance to States for Capital Investment (SASCI) scheme. These measures are specifically designed to empower Meghalaya to accelerate its capital expenditure and infrastructure creation, fostering sustainable economic growth and improved public services.
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 for the upcoming fiscal year. This allocation provides the state government with greater untied financial resources, allowing it to pursue and fund its unique developmental priorities with increased autonomy and flexibility. This move builds upon a decade of sustained fiscal support from the central government.
Historical data reveals a robust pattern of assistance: between the years 2014 and 2024, the Centre released a total of Rs 69,339 crore as tax devolution alongside Rs 40,452 crore as grants-in-aid to Meghalaya. This consistent financial backing reflects a long-term strategy aimed at fostering equitable regional development and strengthening the state's fiscal capacity.
Capital Investment Boosted Through Interest-Free Loans
Capital investment in Meghalaya has received a substantial boost through the SASCI scheme, which provides states with 50-year interest-free loans for infrastructure projects. Between the financial years 2020-21 and 2025-26 (up to January), Meghalaya has received a cumulative amount of Rs 6,523 crore under this initiative. Notably, the annual releases under SASCI have shown a steady and consistent upward trend, enabling predictable and scalable project planning.
Tangible Infrastructure Development Across Sectors
This enhanced budgetary support has directly translated into visible and impactful infrastructure growth across Meghalaya. In the critical roads sector, significant progress has been made:
- Over 1,156 kilometers of National Highways have been constructed in the state as of June 30, 2025.
- Under the flagship Bharatmala Pariyojana, 170 km of National Highway corridors have been approved for Meghalaya at a tentative cost of Rs 2,703 crore.
Tourism development, a key economic driver for the region, has also gained considerable momentum. Two major projects under the Swadesh Darshan Scheme 2.0 have been sanctioned to enhance visitor experience:
- The Meghalayan Age Cave Experience at Sohra, with a sanctioned amount of Rs 32 crore.
- The Waterfall Trails Experience at Sohra, allocated Rs 28 crore.
Furthermore, the Polo Shopping Complex in Shillong was inaugurated in July 2025, adding to the urban infrastructure and commercial facilities in the state capital.
Special Infrastructure Schemes and Project Approvals
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 dedicated road and bridge projects with a cumulative worth of Rs 459 crore.
- An additional 116 other vital infrastructure projects valued at over Rs 1,737 crore.
Wide-Ranging Coverage of Central Welfare Schemes
The Union Budget support has further enabled the extensive implementation and wide coverage of various central government welfare schemes across Meghalaya. As of January 2026, the state has recorded impressive enrollment and disbursement figures:
- 8.98 lakh PM Jan Dhan accounts opened for financial inclusion.
- 6.28 lakh enrollments under the PM Jeevan Jyoti Bima Yojana.
- 10.9 lakh enrollments under the PM Suraksha Bima Yojana.
- Loans worth Rs 3,330 crore disbursed under the PM Mudra Yojana.
- 92,500 subscribers enrolled in the Atal Pension Yojana.
- 5,830 applications disbursed under the PM SVANidhi scheme.
- 94,000 Kisan Credit Cards issued to farmers.
- 5.42 lakh rural households connected to tap water under the Jal Jeevan Mission.
These figures underscore the deep penetration and successful rollout of social security and economic empowerment initiatives in Meghalaya, facilitated by the sustained fiscal partnership between the state and the central government.
