Shillong: The Meghalaya government on Saturday welcomed the Union Budget 2026–27, describing it as forward-looking and pragmatic, with a strong emphasis on fiscal prudence, sustained public investment, inclusive growth and balanced regional development.
In a statement issued by the Finance Department, the state government said the Budget provides a clear roadmap towards the national goal of Viksit Bharat, with a renewed focus on infrastructure-led growth.
Public capital expenditure has been increased to Rs. 12.2 lakh crore, alongside targeted investments in sectors such as education, healthcare, tourism, agriculture, skilling and technology-driven governance.
The government expressed appreciation to the Centre for enhancing the allocation under the Special Assistance to States for Capital Investment (SASCI) to Rs. 1.85 lakh crore for 2026–27, stating that the support has played a crucial role in strengthening capital-led development and infrastructure creation in Meghalaya.
The statement noted that the Union Budget has reiterated a strong policy thrust on the North-Eastern Region, recognising its strategic importance, ecological sensitivity and untapped economic potential.
Measures aimed at improving connectivity, tourism, agriculture, healthcare and human capital development are expected to boost growth and employment across the region.
For Meghalaya, these initiatives align closely with state priorities such as eco-tourism, tribal livelihoods, youth skilling, healthcare access and sustainable agriculture.
Highlighting sector-specific implications, the government said the proposed Rs. 10,000 crore SME Growth Fund would support the scaling up of micro, small and medium enterprises, including women-led enterprises, and help create ‘champion SMEs’ through targeted equity support.
Continued expansion of central capital expenditure and focus on Tier-II and Tier-III growth centres are expected to strengthen physical and digital connectivity, particularly in hilly and remote areas.
In tourism, initiatives such as the establishment of a National Institute of Hospitality, the National Destination Digital Knowledge Grid and the promotion of sustainable tourism models are seen as significant opportunities for Meghalaya’s nature-based and community-led tourism economy.
The proposed pilot programme to train 10,000 tourist guides across 20 iconic destinations is also expected to benefit the state.
On education and youth development, the government said proposals such as university townships, girls’ hostels in STEM institutions in every district and the education-to-employment framework would improve access, equity and employability, especially for women students from tribal and rural areas.
Healthcare initiatives announced in the Budget, including the expansion of allied health institutions, strengthening of emergency and trauma care facilities and development of caregiver ecosystems, are expected to improve healthcare capacity and generate employment.
The exemption of basic customs duty on 17 cancer drugs and medicines was described as a major relief for patients undergoing critical treatment.
In agriculture and rural livelihoods, the state welcomed the special focus on agarwood cultivation in the Northeast, AI-enabled advisory services through Bharat-VISTAAR and promotion of women-led enterprises through SHE-Marts, which are expected to support income diversification and rural entrepreneurship.
The proposed Divyang Sahara Yojana, aimed at improving access to high-quality assistive devices and strengthening support systems for persons with disabilities and senior citizens, was also highlighted.
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The government said it is currently examining the recommendations of the 16th Finance Commission and their implications for Meghalaya’s fiscal capacity and development planning.
While the overall divisible pool of central taxes remains unchanged nationally, the state noted that revisions in horizontal devolution parameters have moderated Meghalaya’s relative share, leading to constraints in untied fiscal space for hill states with challenging terrain and higher service delivery costs.
For 2026–27, Meghalaya has been allocated Finance Commission grants of Rs. 190 crore for rural local bodies, Rs. 49 crore for urban local bodies, Rs. 63 crore for the State Disaster Response Fund and Rs. 16.20 crore for the State Disaster Mitigation Fund.
The government said these transfers would support grassroots governance, urban services and disaster preparedness, even as the state continues to face significant developmental and climate-related challenges.
