Shillong, Feb 6: Meghalaya has set an ambitious target to grow into a ₹85,787 crore economy by FY28 as part of its Vision 2032 roadmap, banking on aggressive capital expenditure, welfare expansion and strategic fiscal management.
At the Pre-Budget Consultation for FY27 held on February 6, the Finance Department highlighted that Meghalaya is currently the second fastest growing state in India in real GSDP, recording nearly 10% growth for three consecutive years post-Covid. The state’s economy expanded by 76.5% between FY21 and FY25 and is projected to reach $10 billion by FY28 and $16 billion by 2032.
Capital Push Drives Growth
Capital expenditure has surged 4.4 times, rising from ₹1,435 crore in FY18 to ₹6,395 crore in FY25.
Capital outlay now constitutes 27.2% of total expenditure, up from 14.5% in FY18, placing Meghalaya 4th in India in capital outlay as a percentage of total expenditure.
Total expenditure has grown at a CAGR of 12.8%, with capital expenditure growing at a faster 16.6%, underscoring the government’s infrastructure-led growth strategy.
The state has launched over 30 welfare schemes since 2021 under its “evolving welfare administration” framework.
The government said the approach has shifted from basic service delivery to empowerment-driven schemes targeting farmers, youth, entrepreneurs and vulnerable households.
Despite rising investments, Meghalaya has kept committed expenditure (salaries, pensions, interest) at 42% of total revenue expenditure, lower than 13 other states.
Post-Covid, committed revenue expenditure growth has slowed to a CAGR of 9.3% from 13.3% earlier, reflecting tighter fiscal control.
State resources grew at a CAGR of 13.7% between FY18 and FY25, outpacing borrowings growth (9.9%).
Tax collections, including GST and sales tax, recorded a 13.3% CAGR since FY18. Centrally sponsored scheme releases peaked at ₹7,050 crore in FY24, with strong inflows under Jal Jeevan Mission, MGNREGA and PMAY.
Under externally aided projects, Meghalaya is implementing 15 ongoing projects worth ₹12,166 crore, of which 90% of the loan burden will be borne by the Government of India.
The state’s debt-to-GSDP ratio stands at approximately 33.2% in FY25, significantly below several high-debt states.
Officials said this ensures fiscal sustainability even as investments expand.
The Finance Department said the upcoming FY27 budget will continue focusing on capital creation, infrastructure acceleration, welfare expansion and private sector participation under Mission 10 and Vision 2032.
