By Bijoy A. Sangma
Meghalaya’s Budget 2025-26 is more than just a financial blueprint – it is a vision for transformation, a commitment to inclusive growth, and a test of the state’s ability to navigate economic challenges. Presented by Chief Minister Conrad K. Sangma on March5, 2025 at the Meghalaya State Assembly the budget outlines an ambitious roadmap for economic expansion, infrastructure development, social welfare, and environmental sustainability.
With the introduction of Meghalaya Mission 10, the government aims to propel the state towards a $10 billion economy by 2028, fostering growth in tourism, agriculture, entrepreneurship, and digital infrastructure. The budget projects an annual economic growth rate of 12.7%, with Meghalaya’s Gross State Domestic Product (GSDP) expected to reach Rs 85,000 crore by 2028 nearly double its 2018 level of Rs 42,697 crore.
However, with great ambition comes great responsibility. While the budget is structured around strategic investments and revenue-generation plans, concerns about funding, administrative efficiency, and long-term sustainability remain. Can Meghalaya turn these bold projections into reality, or will execution challenges hinder its progress?
A People-Centric Budget: Shaped by Consultation and Vision
What sets this budget apart is its inclusive and consultative approach. Unlike many financial plans designed behind closed doors, Meghalaya’s Budget 2025-26 was formulated through engagement with citizens, academicians, business leaders, and civil society organizations. The government actively sought input to ensure that policies align with the real aspirations and needs of the people.
The long-term vision for Meghalaya, articulated in Meghalaya Mission 10, emerged from regional and sectoral consultations, shaping targeted policies across ten key opportunity sectors. This participatory approach strengthens the government’s claim that the budget is not just a top-down directive but a reflection of the people’s needs.
With significant allocations in education, healthcare, rural development, and entrepreneurship, this budget presents itself as a “People’s Budget.” However, the real test lies in ensuring that these investments reach the grassroots level efficiently and equitably.
Infrastructure Boom: The Key to a Modern Meghalaya?
A standout feature of this budget is its unprecedented emphasis on infrastructure development. The government has earmarked Rs 9,447 crore for capital expenditure, a seven-fold increase since 2017-18, demonstrating its commitment to transforming Meghalaya’s physical landscape.
The New Shillong City project takes centre stage, envisioning a non-motorized, future-ready urban space equipped with smart roads, a heliport, and a sustainable business district. Additionally, Rs 2,873 crore has been allocated for road connectivity, targeting rural accessibility and trade enhancement.
The government’s border trade expansion strategy is another notable highlight. Projects like the Dhubri-Phulbari bridge and the Hili-Mahendraganj transnational corridor with Bangladesh aim to position Meghalaya as a regional trade hub, opening new economic opportunities.
However, infrastructure delays have historically plagued Meghalaya. The Shillong-Dawki Road Project, which was sanctioned in 2016, has yet to be fully completed due to land acquisition issues and administrative hurdles. Given this track record, the success of the New Shillong City project and border trade corridors will depend on streamlined execution, efficient governance, and transparency in project management.
Tourism: Meghalaya’s Growth Engine or an Overreliance?
Tourism remains one of Meghalaya’s strongest economic drivers, and the budget reflects this by allocating Rs 600 crore for luxury resorts, cultural centres, and adventure tourism. With a 33% increase in tourist footfall since pre-COVID levels, the state is banking on its natural beauty and heritage to boost revenue and employment.
The Meghalaya Tourism Policy 2023 provides a structured framework for sustainable tourism growth, emphasizing eco-tourism, community-based tourism, and improved infrastructure. However, risks remain – seasonal fluctuations, last-mile connectivity gaps, and limited hospitality capacity could restrict the sector’s long-term potential.
The key challenge is ensuring that tourism growth is equitable and sustainable, avoiding over-commercialization that could strain Meghalaya’s fragile ecosystems.
Agriculture & Rural Development: Can Meghalaya Achieve Self-Sufficiency?
The budget allocates Rs 618 crore to agriculture, marking a 43% increase from last year. Through the CM FARM+ initiative, the government aims to expand high-value crops like black pepper, floriculture, and mushrooms, offering farmers greater diversification and profitability.
Additionally, the CM ASSURE program, with a Rs 50 crore allocation, promises minimum support prices for essential crops like broom and areca nut, protecting farmers from market volatility and distress sales.
While these interventions are commendable, Meghalaya’s agriculture sector still faces structural issues – low productivity, weak market linkages, and a lack of cold storage facilities continue to impact farmer incomes. Without investments in modernizing agricultural supply chains, robust cold storage and transport networks, farmers may struggle to fully capitalize on these programs.
Powering Meghalaya: Sustainable Growth or a Looming Challenge?
The Rs 1,088 crore allocation to the power sector reflects the government’s push for energy self-sufficiency and sustainability. A key initiative, the CM Solar Mission, offers a 90% subsidy on standalone solar systems, encouraging the adoption of renewable energy solutions.
Additionally, Meghalaya has reduced Aggregate Technical and Commercial (AT&C) losses from 32% to 17% over five years, an achievement that strengthens power sector efficiency.
However, Meghalaya’s power deficit remains a significant challenge, and the state still relies heavily on central funding for electricity reforms. Unless Meghalaya’s state-run power corporation (MeECL) improves financial sustainability, the sector risks becoming a long-term fiscal burden rather than a driver of economic growth.
The Fiscal Challenge: Can Meghalaya Balance Growth & Debt?
The budget estimates total receipts at Rs 30,415 crore, with revenue receipts at Rs 25,591 crore. While the government projects a fiscal deficit of Rs 1,970 crore, it has managed to keep it within 2.96% of the GSDP, below the 3.5% permissible limit. This is commendable. However, with total borrowings of Rs 4,788 crore, Meghalaya remains heavily reliant on external funding sources such as Centrally Sponsored Schemes, Externally Aided Projects (EAPs), and Special Assistance to States for Capital Investment (SASCI). The increasing debt burden raises concerns about long-term financial sustainability.
If private sector investments and state-generated revenue fail to keep pace with expenditure, Meghalaya could face long-term fiscal constraints. The challenge ahead is to ensure financial discipline while maintaining high-growth investments.
A Bold Vision: Will Meghalaya Rise to the Challenge?
Meghalaya’s Budget 2025-26 is more than just a financial plan – it is a bold statement of intent. With strategic investments in infrastructure, entrepreneurship, tourism, and digital transformation, it aims to reshape the state’s economy and unlock new opportunities. The Rs 9,447 crore capital expenditure, massive push for urban development, expansion of trade corridors, and technology-driven governance reforms reflect a government that is thinking big. But is thinking big enough?
Budgets are often defined not by the promises they make but by the results they deliver. The real test for Meghalaya is not in its ambitious projections but in its ability to translate vision into reality. The state has, in the past, struggled with project delays, bureaucratic inefficiencies, and underutilization of funds. Can this time be different?
The success of this budget does not rest solely on government execution – it requires a collective effort from policymakers, businesses, and citizens alike. Will private investors see Meghalaya as a viable destination for business expansion? Will local entrepreneurs and industries receive the support they need to thrive? Will administrative reforms ensure that funds reach the grassroots level without bureaucratic delays? These questions will shape Meghalaya’s economic future.
This budget is a defining moment for Meghalaya. If implemented with efficiency, integrity, and foresight, it could mark the beginning of an era of unprecedented growth. But if execution falters, governance inefficiencies persist, or investment plans fail to materialize, the state risks falling into a pattern of unrealized potential.
Ultimately, the fate of Meghalaya’s future does not rest with the government alone. It will be shaped by entrepreneurs who dare to innovate, by communities that embrace change, and by citizens who hold their leaders accountable. The question remains – is Meghalaya truly prepared to rise to the challenge, or will this grand vision remain just another missed opportunity?
(The writer is a development professional, policy analyst, commentator on governance, economic policies, social justice and religious freedom. He has previously worked with national and international organizations in leadership roles, contributing to thought leadership in public policy and social transformation. He can be reached at bijoy.sangma@gmail.com)
