Shillong, Mar 6: The Meghalaya Pradesh Congress Committee (MPCC) on Friday alleged that government spending in the state has not translated into equitable distribution of wealth, claiming that a significant share of public works contracts have gone to a limited number of contractors.
Addressing mediapersons, MPCC general secretary Manuel Badwar said data obtained from the Public Works Department (PWD) showed that between 2000 and 2022, the department spent over Rs 760 crore on various public works, of which more than Rs 425 crore was awarded to a single party.
According to Badwar, such concentration of contracts undermines the broader objective of public spending. “When the government creates assets through public works, the benefits should ideally be distributed among many contractors so that wealth creation reaches more people. But what we are seeing is that a very large share of the spending is going to very few people,” he said.
Badwar said the Congress convened the briefing to provide the public with a clearer understanding of the state budget, stressing that the intention was not merely to find faults but to analyse how government spending is impacting people.
He pointed out that while the Chief Minister has highlighted an increase in capital expenditure – estimated at over Rs 6,300 crore for 2025–26 – the Congress believes the spending is not translating into tangible benefits for the wider population.
“Capital expenditure includes both asset creation and loan repayments. Over the past six years, loan repayments have increased significantly and the amount is quite alarming,” Badwar said.
He added that despite higher spending, unemployment remains a concern in the state. “In Meghalaya, the unemployment rate is over 6 per cent, while urban unemployment exceeds 12 percent. If such large sums are being spent on asset creation, the benefits should reach more people and generate wider employment opportunities,” he said.
Badwar also questioned the government’s claims of improved investment in the health sector. He noted that the allocation for health has increased from Rs 1,142 crore in 2020 to around Rs 2,000 crore in 2025–26, but argued that rising healthcare inflation has diluted the actual impact of the spending.
“The inflation rate in the health sector is very high, nearly 14 per cent. So even if the government doubles spending, the real improvement on the ground may not be as significant,” he said.
Citing data from the state’s socioeconomic review, Badwar further claimed that key health indicators have shown little improvement, pointing out that only about 70 percent of mothers deliver in institutional facilities while around 30 percent still give birth at home, often without proper medical assistance.
On education, he said the government’s proposed allocation of Rs 3,347 crore for the upcoming financial year is lower than the Rs 3,654 crore spent in the previous fiscal year.
“This effectively means a reduction of nearly Rs 300 crore in education spending. At a time when school dropout rates are increasing, reducing investment in education will only worsen the situation,” he said.
Badwar also expressed concern over possible social impacts if employment guarantees under rural job schemes are altered, warning that reduced income opportunities for families, particularly single mothers, could lead to more children dropping out of school.
Highlighting poverty as a continuing challenge, he cited data indicating that around 27.79 percent of the state’s population falls under multidimensional poverty.
“With nearly 9 to 10 lakh people already facing poverty, the government must prioritise sectors like education, health and employment. Otherwise, the gap between the rich and the poor will continue to widen,” Badwar said.
He urged the government to ensure that public spending creates wider opportunities and benefits a larger section of society, particularly the youth.
‘State needs entrepreneurial ecosystem’
The Meghalaya Pradesh Congress Committee (MPCC) has said there is an urgent need for the state government to focus on cultivating a robust ecosystem tailored for entrepreneurs.
MPCC general secretary Manuel Badwar said this is vital for improving market access and establishing digital platforms that would connect local producers with consumers nationwide. He said the state has vast potential of youth to spur economic growth through entrepreneurship.
“Not everybody can do business. Out of 100 people, you’ll be lucky if 10 are very successful entrepreneurs,” Badwar said, adding that the government’s role should be to create an ecosystem that allows those capable of running businesses to generate wealth and employment for others.
He highlighted the absence of a clear e-commerce policy in Meghalaya, despite the rapid expansion of online shopping in India.
To tap into online markets effectively, Badwar proposed the idea of collaborating with major e-commerce platforms like Amazon and Flipkart to establish fulfillment centers in Meghalaya. Such infrastructure would lower logistics costs for small entrepreneurs and artisans, empowering them to reach a national audience, he said.
