Shillong, Feb 2: Meghalaya has been allocated Rs 9,631 crore under tax devolution as per estimates in the 2026-27 Union budget.
The central government’s Press Information Bureau (PIB) put out a positive spin on yesterday’s budget in a release today wherein it said that the 2026-27 budget reinforces the Centre’s “commitment to Meghalaya’s development with enhanced fiscal support through higher tax devolution and increased allocations under the Special Assistance to States for Capital Investment (SASCI), enabling the state to accelerate capital expenditure and infrastructure creation.”
Between 2014 (when the Bharatiya Janata Party came to power under Narendra Modi) and 2024, central transfers to Meghalaya have increased, with Rs 69,339 crore released as tax devolution and Rs 40,452 crore as grants-in-aid, the PIB said.
The Rs 9,631 crore in tax devolution will provide greater untied resources to support Meghalaya’s developmental priorities, the release added.
The budget also strengthened capital investment through SASCI, under which 50-year interest-free loans are extended to states, with the entire interest burden borne by the Centre, over and above the recommendations of the Finance Commission. Under this scheme, Meghalaya has received Rs 6,523 crore from 2020–21 to January 2026, with annual releases rising steadily.
This budgetary support has translated into visible infrastructure development in Meghalaya, the PIB said. In the roads sector, over 1,156km of National Highways have been constructed in the state as on June 30, 2025. Under the Bharatmala Pariyojana, development of 170km of National Highway corridors has been approved with a tentative capital cost of Rs 2,703 crore. Further, on October 24, 2024, the Union Ministry of Rural Development sanctioned 88 roads measuring 782km and 55 bridges under PMGSY-III, with an estimated investment of Rs 1,056 crore.
The release also waxed on about how the central government has prioritised railways in the North East, though this point is barely relevant in Meghalaya as there is only one short railway line in North Garo Hills; fierce opposition from pressure groups and political parties has stymied further progress in this regard, especially in Khasi-Jaintia Hills.
The PIB also highlighted an increase in air connectivity to Umroi Airport, much of which has been brought about by subsidising routes by the central government.
Support for tourism was also mentioned, along with the inauguration of the Polo Shopping Complex last year (though finishing touches mean that the mall is barely operational for now) and the Smart Cities Mission (which Shillong has had mixed experience with).
