Shillong: Meghalaya has been allocated Rs 9,631 crore as tax devolution for the financial year 2026–27 under the Union Budget, a move expected to significantly strengthen the state’s capacity to step up capital expenditure and infrastructure development, officials said on Monday.
Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2026–27 in the Lok Sabha on Sunday.
Officials said the enhanced devolution would provide Meghalaya with greater untied funds, enabling the state to pursue its development priorities more effectively.
Central financial transfers to Meghalaya have shown a steady rise over the past decade.
According to an official statement, between 2014 and 2024, the Centre released Rs 69,339 crore to the state as tax devolution, along with Rs 40,452 crore as grants-in-aid, indicating sustained growth in fiscal support.
Capital investment in the state has also received a boost 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, facilitating faster execution of major capital projects.
Infrastructure development, particularly in the road sector, has gained momentum with more than 1,156 km of National Highways constructed in the state as of June 30, 2025.
In addition, highway projects covering 170 km have been approved under the Bharatmala Pariyojana at an estimated cost of Rs 2,703 crore.
Officials said the increased budgetary support has also helped expand the reach of key welfare initiatives.
As of January 2026, over 8.98 lakh Jan Dhan accounts have been opened in Meghalaya, while loans exceeding Rs 3,300 crore have been disbursed under the Pradhan Mantri Mudra Yojana, strengthening financial inclusion and credit access across the state.
