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Meghalaya is expected to receive INR 9,631 crore in tax devolution for 2026-27, enhancing the state's capacity for infrastructure development and capital expenditure. Over the past decade, central transfers have steadily increased, totaling INR 69,339 crore as tax devolution and INR 40,452 crore as grants-in-aid from 2014 to 2024. The Special Assistance to States for Capital Investment has further supported capital projects with INR 6,523 crore allocated between 2020-21 and January 2026. Infrastructure improvements include over 1,156 km of National Highways and 170 km approved under Bharatmala projects. Welfare schemes like Jan Dhan and PM Mudra Yojana have also seen wider reach.
Meghalaya is set to receive INR 9,631 crore as tax devolution for 2026-27, strengthening the state's ability to accelerate capital expenditure and infrastructure development, officials indicated earlier this week. The higher devolution will give the state more untied resources, allowing it to focus on key developmental priorities. Finance Minister Nirmala Sitharaman had presented the Union Budget for 2026-27 in the Lok Sabha, outlining allocations to states to enhance fiscal support. Advertisement
Central transfers to Meghalaya have been rising steadily over the past decade. Between 2014 and 2024, the Centre released a total of INR 69,339 crore to the state as tax devolution and INR 40,452 crore as grants-in-aid, reflecting continuous growth in fiscal assistance, according to officials. Capital investment in the state has also been strengthened through the Special Assistance to States for Capital Investment (SASCI), which provides states with 50-year interest-free loans, with the Centre covering the entire interest burden. Under SASCI, Meghalaya has received INR 6,523 crore from 2020-21 to January 2026, enabling faster implementation of key capital projects.
Infrastructure development in the state has seen significant progress. More than 1,156 km of National Highways have been constructed as of mid-2025, while projects covering an additional 170 km under the Bharatmala Pariyojana have been approved at an estimated cost of INR 2,703 crore. The increased budget support has also contributed to expanding coverage of flagship welfare programs. By January 2026, over 8.98 lakh Jan Dhan accounts had been opened in Meghalaya, and loans exceeding INR 3,300 crore were disbursed under the PM Mudra Yojana.
Source PTI
FAQ
Q1. How much tax devolution is Meghalaya set to receive for 2026-27?
Meghalaya is expected to receive INR 9,631 crore in tax devolution for the financial year 2026-27. This increase will provide the state with additional untied resources, allowing it to accelerate infrastructure projects, capital expenditure, and welfare initiatives, while strengthening its financial autonomy and enabling faster implementation of development priorities.
Q2. How have central transfers to Meghalaya evolved over the past decade?
Central transfers to Meghalaya have steadily increased over the last decade. Between 2014 and 2024, the Centre provided INR 69,339 crore as tax devolution and INR 40,452 crore as grants-in-aid. This sustained growth reflects the government's focus on improving the fiscal capacity of smaller states, ensuring consistent funding for development, infrastructure, and social welfare programs.
Q3. What is the role of Special Assistance to States for Capital Investment (SASCI) in Meghalaya?
Under the SASCI initiative, Meghalaya received INR 6,523 crore from 2020-21 to January 2026. These funds are interest-free 50-year loans, with the Centre covering the entire interest cost. SASCI support has helped the state implement large-scale capital projects, including highways, urban development, and public infrastructure, boosting the speed and scale of development.
Q4. What infrastructure projects have benefited from this increased funding?
Meghalaya has achieved substantial progress in infrastructure development. Over 1,156 km of National Highways have already been completed, and an additional 170 km of roads under the Bharatmala Pariyojana have been approved at a cost of INR 2,703 crore. These projects aim to enhance connectivity, trade, and regional integration, linking remote areas to markets and economic hubs.
Q5. How have welfare schemes in Meghalaya been supported by central funds?
Increased budgetary support has expanded the reach of key welfare initiatives. By January 2026, over 8.98 lakh Jan Dhan accounts had been opened in Meghalaya, and loans exceeding INR 3,300 crore were disbursed under the PM Mudra Yojana. These efforts have empowered small businesses, entrepreneurs, and low-income households, promoting inclusive economic growth and financial inclusion.
Q6. What is the broader impact of the increased devolution on Meghalaya's development?
The enhanced tax devolution and central assistance strengthen Meghalaya's fiscal capacity, infrastructure, and welfare delivery. By providing more financial flexibility, the state can accelerate capital projects, expand public services, and improve connectivity, supporting long-term socioeconomic growth, boosting regional employment opportunities, and improving the quality of life for citizens across urban and rural areas.
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