Shillong, Aug 30: Meghalaya’s economy grew 12.03 per cent in 2024-25, outpacing India’s GDP growth of 9.78 per cent, even as the state’s revenue receipts declined by 4.58 per cent, mainly due to a sharp fall in central grants, the CAG said.
Meghalaya’s Gross State Domestic Product (GSDP) increased from Rs 53,223 crore in 2023-24 to Rs 59,626 crore in 2024-25, reflecting strong economic growth during the year, according to the Comptroller and Auditor General’s State Finances Audit Report tabled in the assembly on August 28.
However, revenue receipts fell from Rs 17,977.86 crore to Rs 17,153.91 crore during the period.
The decline was largely attributed to a 40.15 per cent reduction in grants-in-aid from the Centre, which fell from Rs 5,574.86 crore in 2023-24 to Rs 3,336.37 crore in 2024-25.
The report said this was the lowest amount of central grants received by the state in five years.
Non-tax revenue also declined by 9.40 per cent, from Rs 523.25 crore to Rs 474.08 crore.
The impact was partly offset by a 13.93 per cent increase in Meghalaya’s share of Union taxes and duties, which rose to Rs 9,870.40 crore in 2024-25.
The state’s own revenue, comprising tax and non-tax receipts, increased by 5.54 per cent to Rs 3,947.14 crore during the year.
Despite the improvement in own revenue, Meghalaya remained heavily dependent on central transfers, which accounted for 76.99 per cent of its total revenue receipts in 2024-25. The state’s own resources contributed 23.01 per cent.
The gap between economic growth and revenue mobilisation was also reflected in the revenue receipts-to-GSDP ratio, which declined from 33.78 per cent in 2023-24 to 28.77 per cent in 2024-25.
The CAG observed that the growth of Meghalaya’s own tax revenue had generally remained below the pace of GSDP expansion.
It recommended broadening the tax base, strengthening compliance and improving collection efficiency to reduce dependence on central transfers and ensure sustainable fiscal management. (PTI)
