Shillong, Aug 28: The Comptroller and Auditor General (CAG) of India’s State Finances Audit Report (SFAR) of the Meghalaya government for 2024-25 was tabled in the Meghalaya Legislative Assembly today.
The report offers an in-depth review of the state’s economic performance, budget execution and financial reporting while highlighting both impressive growth and critical fiscal management challenges.
On the positive side, Gross State Domestic Product (GSDP) at current prices rose by 12.03 per cent to Rs 59,626 crore in 2024-25, outpacing India’s GDP growth rate of 9.78 per cent. However, Meghalaya still has a long way to go to catch up to the rest of the country, as its per capita income was a mere Rs 1,57, 141 against the national average of Rs 2,05,324, which is more than 26 per cent lower.
Meghalaya remains heavily reliant on funds from the central government, with 76.99 per cent of revenue receipts coming through central transfers (Union taxes and grants-in-aid).
Capital expenditure significantly increased to Rs 5,245.98 crore, indicating investment in infrastructure and development.
However, to fund future growth, the government is spending significantly more than it earns and is also borrowing heavily.
The state achieved a post-audit revenue deficit of Rs 52.69 crore, falling short of the revenue surplus target set under the Meghalaya Fiscal Responsibility and Budget Management Act 2006 as amended.
Indeed, before the audit, the Finance Department had shown a revenue surplus of Rs 72.71 crore for 2024-25. However, the audit found that the state government had “misclassified” expenditure of Rs 125.40 crore, which resulted in an overstatement of revenue surplus.
The fiscal deficit widened to Rs 5,184.01 crore, which, as a percentage of GSDP, grew sharply to 8.69 per cent, thereby not achieving the target of 3.50 per cent set under MFRBM Act.
Total liabilities stood at 44.61 pe rcent of GSDP, breaching the statutory ceiling of 28.00 per cent. This includes a 50-year interest free loan from the central government under the Scheme for Assistance to States for Capital Investment (SASCI), according to the CAG report.
The CAG also drew attention to Meghalaya’s performance in budget execution and financial reporting.
The report stated that Meghalaya’s budget estimates were “not very realistic”, with notable deviations in both revenue and capital outlays.
As on March 31, 2025, expenditure to the extent of Rs 20,378.78 crore was yet to be regularised. In addition, high pending utilisation certificates of Rs 5,428.54 crore and unadjusted AC (abstract contingent) bills of Rs 20.39 crore “point to significant gaps in financial control.”
AC bills are funds drawn by Drawing and Disbursing Officers (DDOs) for urgent or contingent expenditures before receiving final approval or vouchers.
