Budget deficit, Rs 2,672 cr, maintained at permissible 3.5% of state GSDP
Meghalaya now marked by ‘5 thoughts’ – stable, aspirational, collaborative, caring, sustainable: CM
Shillong, Feb 23: Chief Minister Conrad K Sangma, also in-charge of Finance, on Monday presented his ninth annual budget in a row with a total outlay of Rs 32,023 crore for 2026-27, and termed Meghalaya a reflection of “five thoughts” – stable, aspirational, collaborative, caring and sustainable.
While the budget expenditure is estimated to be Rs 32,023 crore, the total receipts are pegged at Rs 32,000 crore. The fiscal deficit is pegged at Rs 2,672 crore, around 3.5% of GSDP.
“I am presenting the budget for 2026-27 with a fiscal deficit of Rs 2,672 crore, which is around 3.5% percent of the GSDP. I am delighted to highlight that the fiscal deficit has been maintained at the permissible limit of 3.5%,” Sangma said.
“The total receipt is at Rs 32,000 crore, of which the revenue receipts are estimated at Rs 26,583 crore and capital receipts at Rs 5,417 crore,” Sangma said in his budget speech.
The total receipts, excluding borrowings of Rs 5,379 crore, are estimated to be at Rs 26,621 crore, he said adding that the total expenditure is estimated at Rs 32,023 crore, of which the revenue expenditure is estimated at Rs 21,812 crore and capital expenditure at Rs 10,211 crore.
The chief minister said the estimated total expenditure is Rs 29,293 crore excluding repayment of loans of Rs 2,731 crore.
He said the interest payments for 2026-27 are estimated at Rs 1,540 crore and pension payments at Rs 1,980 crore.
Sangma highlighted dedicated budget and said, “The size of the climate budget for 2026-27 is Rs 5,572 crore, an increase of 2.8% over 2025-26; Youth Budget stands at Rs 4,824 crore, an increase of 45%; Gender Budget stands at Rs 6,849 crore, an increase of 10%.”
Sangma said Meghalaya’s GDP is projected at Rs 76,320 crore in 2026-27, a 13.1% rise from 2024-25, keeping the state on course for Rs 85,000 crore by 2028 and Rs 1,35,000 crore by 2032.
He said central transfers are expected to reach Rs 21,229 crore, though the share of central taxes will slip to Rs 9,631 crore under the Sixteenth Finance Commission’s devolution formula.
“…as the national economy continues to expand, the overall central tax pool will grow, and our share will correspondingly strengthen,” Sangma said.
The state’s own tax revenue is projected at Rs 4,720 crore — including Rs 2,351 crore from GST — up from Rs 1,450 crore in 2017-18, while non-tax revenue should hit Rs 634 crore as mining licences advance. Total expenditure is set at Rs 32,023 crore, with capital spending at Rs 10,211 crore, a seven-fold rise since 2017-18.
Chief Minister said Meghalaya is now the second-fastest growing state after Tamil Nadu, sustaining nearly 10% real GSDP growth for three straight post-COVID years and outpacing the national average with 12% nominal growth in 2025.
“I am very happy to report that our growth rate reflects steady and meaningful progress,” Sangma said, recalling his 2022 promise to make 2022-32 the “Meghalayan Decade” and triple GSDP by the state’s 60th year in 2032.
He cited Prime Minister Narendra Modi’s note praising the state’s “exemplary” post-COVID growth and “prudent” fiscal management, and said Union ministers had echoed the assessment.
Sangma linked the momentum to Vision 2032 and Meghalaya Mission 10 — ten opportunity sectors and ten inclusivity commitments — backed by a 4.4-fold rise in capital expenditure since 2017-18 and strong uptake of SASCI, externally aided projects, and CSS funds.
Highlighting Mawkdok bridge, the new Mawkhanu stadium, New Shillong City and UNESCO push for Living Root Bridges, he said: “Meghalaya may be small in size, but our aspirations are expansive and bold.”
Chief Minister also termed it his ninth consecutive budget and “not merely a statement of receipts and expenditure” but a reflection of the government’s values and priorities.
“The ultimate goal… is to improve the wellbeing of each citizen, to put a smile on every person’s face and to ensure opportunities for every young person,” Sangma said, saying the budget was shaped by thousands of interactions through CM CONNECT public hearings and three Cabinet Retreats with officials.
He acknowledged “appreciation and expectation” from citizens, noting visible progress alongside rising demands for better roads, schools, water supply and power.
Sangma said feedback from mothers under the CM-Safe Motherhood Scheme, FOCUS and CM FARM+ farmers, PRIME entrepreneurs and traditional leaders informed allocations, alongside formal pre-budget consultations.
Sangma closed his budget presentation by defining “five thoughts” which mark the state today, calling Meghalaya stable, aspirational, collaborative, caring and sustainable.
“A Stable Meghalaya that is growing rapidly, with strong fiscal discipline… An Aspirational Meghalaya where we are building world-class infrastructure… A Collaborative Meghalaya where development is shaped through dialogue…” Sangma said, adding that policies “place every citizen at the heart” and advance prosperity while protecting natural and cultural heritage.
He concluded by quoting a Garo “Agan Me’apa”: “Walk the winding path with steadiness… to strive relentlessly to fulfill the vision,” before commending the budget to the House.
