Shillong, Feb 01: The State Government of Meghalaya conveys its sincere appreciation for the Union Budget 2026–27, presented by the Hon’ble Union Minister for Finance. The Budget sets out forward-looking and pragmatic roadmap for India’s journey towards Viksit Bharat, firmly anchored in fiscal prudence, sustained public investment, inclusive growth, and balanced regional development.
The Budget reinforces its strong focus on infrastructure-led growth, with public capital expenditure enhanced to ₹12.2 lakh crore. This is complemented by targeted investments across critical sectors including education, healthcare, tourism, agriculture, skilling, and technology-enabled governance.
The State Government expresses its sincere appreciation to the Central Government for enhancing the Budget Estimates allocation for FY 2026–27 under the Special Assistance to States for Capital Investment (SASCI) to ₹1.85 lakh crore. This support has been instrumental in advancing capital-led development and strengthening infrastructure growth in Meghalaya.
Focus on the North-Eastern Region
- The Union Budget reiterates a clear policy thrust on the North-Eastern Region, recognising its strategic importance, ecological sensitivity, and untapped economic potential. Targeted measures across connectivity, tourism, agriculture, healthcare, and human capital development are expected to support growth and employment generation in the region.
- For Meghalaya, these interventions align with the State’s development priorities, particularly in eco-tourism, tribal livelihoods, youth skilling, healthcare access, and sustainable agriculture.
Key Sectoral Implications for Meghalaya
- MSMEs & Women Led-Entrepreneurship A dedicated ₹10,000 crore SME Growth Fund has been proposed to support the scaling up of micro, small and medium enterprises, facilitating the emergence of ‘Champion SMEs’ through targeted equity support. enterprise ownership.
- Infrastructure and Connectivity
Continued expansion of central capital expenditure and focus on Tier-II and Tier-III growth centres will strengthen physical and digital connectivity, especially in hilly and remote areas.
- Tourism:
Budget proposals such as the establishment of a National Institute of Hospitality, the National Destination Digital Knowledge Grid, and promotion of sustainable tourism models offer significant opportunities for Meghalaya’s nature-based and community-led tourism economy. A pilot scheme to upskill 10,000 tourist guides across 20 iconic tourist destinations will be implemented through a standardised 12-week training programme in hybrid mode, in collaboration with a premier management institution.
- Education and Youth Development
Initiatives including University Townships, Establishment of one girls’ hostel in every district in STEM institutions through VGF or capital support will improve access and retention of women students, particularly relevant for tribal and rural districts, and the Education-to-Employment framework are expected to enhance access, equity, and employability for the State’s youth.
- Healthcare
Expansion of allied health institutions, strengthening of emergency and trauma care facilities, and development of caregiver ecosystems will improve healthcare capacity and create employment opportunities. To provide relief to patients, particularly those undergoing critical treatment, the Budget proposes exemption of Basic Customs Duty (BCD) on 17 cancer drugs and medicines, reducing the cost of lifesaving therapies
- Agriculture and Rural Livelihoods
Special focus on agarwood cultivation in the North-East, AI-enabled advisory services through Bharat-VISTAAR, and promotion of women-led enterprises through SHE-Marts are expected to support income diversification and rural entrepreneurship.
- Empowerment of Divyangjan
Under the proposed Divyang Sahara Yojana, the Government will:
o Support scaling up of production of high-quality assistive devices through ALIMCO
o Strengthen PM Divyasha Kendras
o Establish Assistive Technology Marts as modern retail-style centres where Divyangjan and senior citizens can access and purchase certified assistive products
The 16th Finance Commission Transfers and Implications for Meghalaya (2026–27)
- The State Government is presently examining the fiscal transfers recommended under the
16th Finance Commission (16FC) and their implications for the State’s fiscal capacity and developmental planning and will take necessary action based on a detailed assessment.
Tax Devolution and Fiscal Space
- While the overall divisible pool of central taxes has remained the same at the national level, Meghalaya’s relative share has moderated due to revisions in horizontal devolution parameters. Increased weightage to population (2011), recalibration of income distance, continuance of demographic performance indicators and new parameter of contribution to GDP have had a differentiated impact on smaller and special-category States.
- For hill States such as Meghalaya, characterised by challenging terrain, dispersed habitations, ecological sensitivity, and higher per-unit costs of service delivery, these changes have resulted in constrained untied fiscal space, despite continuing structural and geographic disadvantages.
Finance Commission Grants for 2026–27
- For the financial year 2026–27, Meghalaya has been provided the following Finance Commission grants:
- Rural Local Body (RLB) Grant: ₹190 crore
- Urban Local Body (ULB) Grant: ₹49 crore
- State Disaster Response Fund (SDRF): ₹63 crore
- State Disaster Mitigation Fund (SDMF): ₹16.20 crore
- These transfers will support grassroots governance, urban service delivery, and disaster preparedness. However, the scale of requirements remains significant in view of the State’s vulnerability to climate-related events, high infrastructure costs, and developmental needs in remote and border areas.
