Shillong, Feb 3: Meghalaya is set to receive Rs 9,637 crore as tax devolution from the Centre in the 2026–27 financial year, a development expected to significantly enhance the state’s ability to scale up capital expenditure and infrastructure development, officials said on February 2.
The allocation follows the presentation of the Union Budget 2026–27 by Finance Minister Nirmala Sitharaman in the Lok Sabha on February 1. Officials noted that the increased flow of untied funds would give the state greater fiscal flexibility to pursue its development priorities more effectively.
Central financial support to Meghalaya has shown consistent growth over the years. Official data indicated that between 2014 and 2024, the Centre released Rs 69,335 crore to the state through tax devolution, along with Rs 40,452 crore in grants-in-aid, underscoring a steady expansion of fiscal assistance.
The state has also benefited from enhanced capital investment through the Special Assistance to States for Capital Investment (SASCI) scheme, which provides 50-year interest-free loans with the interest burden borne entirely by the Centre. Under this scheme, Meghalaya received Rs 6,523 crore between 2020–21 and 2025–26 up to January 2026, helping expedite the execution of key infrastructure projects.
Officials said infrastructure development has gathered momentum, with more than 1,156 kilometres of National Highways constructed in the state as of June 30, 2025. Additionally, highway projects spanning 170 kilometres have been approved under the Bharatmala Pariyojana at an estimated cost of Rs 2,703 crore.
The enhanced budgetary support has also strengthened the rollout of central welfare schemes in Meghalaya. As of January 2026, the state had recorded the opening of over 8.98 lakh Jan Dhan accounts, while loans exceeding Rs 3,300 crore had been sanctioned under the Pradhan Mantri Mudra Yojana, officials added.
