By Our Reporter
SHILLONG, March 5: Chief Minister Conrad K Sangma on Wednesday presented what he termed as the people’s budget for 2025-26 with a fiscal deficit of Rs 1,970 crore, which is around 2.96% of the GSDP.
The estimated total receipts is at Rs 30,415 crore, of which the revenue receipts are estimated at Rs 25,591 crore and capital receipts at Rs 4,824 crore.
Excluding borrowings of Rs 4,788 crore, the total receipts are estimated to be Rs 25,627 crore.
On the expenditure side, the total expenditure is estimated at Rs 30,003 crore, of which the revenue expenditure is estimated at Rs 20,556 crore and capital expenditure at Rs 9,447 crore.
Excluding repayment of loans of Rs 2,406 crore, the estimated total expenditure is Rs 27,597 crore.
The interest payments for 2025-26 are estimated at Rs 1,347 crore and pension payments at Rs 1,824 crore.
Presenting the budget, Conrad said that when the MDA 2.0 Government was formed in 2023, they had announced the target of making Meghalaya a $10 billion economy and doubling the State’s GSDP from the then Rs 2,697 crore to Rs 85,000 crore by 2028.
“Meghalaya’s vision is to become a $10 billion economy by 2028 and to be amongst the top ten states in the country, both in terms of per capita GDP and achievement of Sustainable Development Goals by 2032, when we celebrate the diamond jubilee of Statehood,” Sangma said.
He said that this vision has been translated into an actionable plan called “Meghalaya Mission 10”.
“The Mission is centered around leveraging 10 opportunity sectors which will drive growth and create employment for our youth. I have also made 10 commitments to ensure that every Meghalayan benefits from the growth story,” he said.
“I am grateful to all the citizens who have provided inputs to finalize the Meghalaya Mission 10. I am proud to say that the Mission 10 is by the people, of the people and for the people,” he said while adding that they are making steady progress in unlocking each of these opportunities.
Meanwhile, he said that the Ministry of Statistics and Programme Implementation approved GSDP numbers for 2023-24 is Rs 53.057 crore and the projected GSDP for 2025-26 is an impressive Rs 66,645 crore.
Stating that the annual growth rate for the period 2023-26 stands at 12.7%, Sangma said the government is certain about achieving the target for 2028.
Meanwhile, he said that the total estimated transfers from the Centre to Meghalaya are expected to rise to Rs 20,568 crore in 2025-26, up from revised estimates of Rs 19,242 crore in the current year.
The CM also informed that this growth is largely driven by India’s robust economic performance.
“Notably, the share of central taxes is projected to increase by 10.5% to Rs 10,910 crore in 2025-26, up from Rs 9,870 crore in the current year. I would like to applaud Prime Minister Narendra Modi for steering the country’s growth over the last decade,” he said.
Moreover, the chief minister said that his Government has made strong efforts to improve Tax and Non-tax revenues – State’s own tax revenue has witnessed a significant surge reaching Rs 4,041 crore in the current year, marking almost a 3-fold increase from Rs 1,450 crore in 2017-18.
“I am projecting the State’s own tax revenue to reach Rs 4,226 crore in 2025-26, comprising GST of Rs 2,094 crore, Taxes on Sales and Trade of Rs 1,180 crore and Excise of Rs 682 crore,” Sangma said.
He further stated that the State’s own non-tax revenue collection has been unpredictable in the recent past due to various judgments of the courts and long drawn transition to scientific mining.
“However, the outlook is optimistic with 3 mining licenses being awarded and 20 more at different stages of approval. I am projecting non-tax revenue of Rs 797 crore in 2025-26,” the CM said.
Further, he stated that the total expenditure for 2025-26 will be Rs 30,003 crore given the increased transfers from the Centre and projected State receipts.
According to him, this is a 3-fold increase in expenditure over the 8-year period, which is one of the highest growth rates in expenditure.
“Total revenue expenditure for the year is RS 20,556 crore and capital expenditure is Rs 9,447 crore. Notably, the projected capital expenditure is a seven-fold increase from 2017-18 levels of Rs 1,435 crore,” he said.
On the investment promotion and private sector development, Sangma said that to achieve the GSDP target the state need substantial private sector investments amounting to at least $1 billion, or approximately Rs 8,500 crore.
“The Meghalaya Industrial and Investment Promotion Policy (MIIPP), 2024, was notified in March 2024. The policy aligns with the Government of India’s Uttar Poorva Transformative Industrialization Scheme (UNNATI) 2024 for Northeastern states, providing incentives on capital investment, interest subvention, GST reimbursement, and green incentives for driving sustainability,” he said.
According to him, the policy emphasizes employment opportunities for the local population. It mandates that 90% of non-managerial positions and 50% of managerial positions be filled by local people within three years of commercial operations by industrial units.
He stated that the state has further created a business-friendly environment through “Ease of Doing Business” initiatives, implementing 280 Business Reforms Action Plan reforms in 2025, up from zero in 2018.
“The Single Window approval system has been revamped to streamline the setup of industries by decentralizing processes at various levels. The Authority is also creating new land banks and developing State-of-the-Art industrial parks,” he said.
In the next financial year, projects costing Rs 600 crore will be taken up which include the Rain and Bamboo Interpretation Centre at Mawsynram, the Wari Chora Cultural Centre, the Living Root Museum at Wahlyngkhat, the Coffee Experience Centre at Marngar, luxury resorts at Adokgre, Sohiong, and Nongnah and a tourist experiential hub at Nartiang.
Sangma informed that infrastructure projects worth Rs 100 crore will be implemented to further arts, crafts and culture for the year 2025-26 including construction of indigenous cultural centre of Seng-Khasi Kmie at Shillong, the Traditional Music Centre at Wahkhen, Khasi Cultural Heritage Centre at Sohra, and the Garo Cultural Heritage Center at Mandalgre.
The CM also informed that he is allocating Rs 100 crore for implementation of Green Meghalaya+ in the next fiscal year which is the country’s largest payment for Ecosystem Services program.
“Ongoing afforestation programs spreading over 30,000 hectares will continue to be supported,” he said.
To strengthen irrigation and water Conservation initiatives, he informed that he is allocating a budget of Rs 559 crore for Soil & Water Conservation and Water Resources Departments, including Rs 338 crore from the state resources which is almost a 16% increase over this year’s allocation.
Stressing that the development of New Shillong City is a major milestone, the CM said that projects worth more than Rs 2,000 crore have been initiated at Umsawli which include Meghalaya New Secretariat, Unity Mall, development of trunk road network, Meghalaya Skills and Innovation Hub, Prime Hub, Heliport and Working Women’s Hostel.
“The proposed new secretariat is an iconic project that symbolizes the aspirations of the state, and it will serve as a centre of public service and improved governance. The Knowledge City is being developed at Mawkhanu with tourism, sports, IT and education as the growth drivers,” he said.
To strengthen connectivity between Shillong and New Shillong, Sangma informed that three road projects of 16 km are under construction. Additional new roads will be taken up in the next financial year, these include Polo to Bellefonte, Mawpat to Nongkohlew, Lumdiengsai to Shillong Bypass, and three segments of the southern bypass from Mawlyngad to Mawkasiang via Mawshbuit and Mawlynrei.
Meanwhile, he informed that the proposal for relocating the police reserve and the central jail from the heart of the city to New Shillong is being finalized.
“The plan for the comprehensive redevelopment of Khyndai Lad and Iewduh is finalised and will be implemented in 2025-26. All these initiatives will enhance the State’s readiness for hosting the National Games in 2027,” Sangma said.
Further, he said that the State has approximately 1,700 unconnected habitations, and the government has set a goal to connect all of them by 2032.
He informed that the overall budget for the Public Works Department is Rs 2,873 crore of which Rs 2,122 crore is from the State resources, almost a 15.6% increase over this year’s allocation.
Moreover, he said that the plans for operationalisation of Baljek Airport and establishing regular air connectivity from Shillong to Tura are being finalised.
“Heliports have been sanctioned for New Shillong and Tura and the construction will begin soon. I am allocating an amount of Rs 63 crore for improving air connectivity in 2025-26,” Sangma said.
On the power sector, he said that he expect the MeECL and its three subsidiaries (MePDCL, MePTCL and MePGCL) to become profitable in the next three years and to be on a self-sustaining path.
“For the next financial year, I am allocating Rs 1,088 crore from the state resources for the power sector, out of which Rs 606 crores is capital contribution,” he said.
He informed that the Megha Health Insurance Scheme (MHIS) has been streamlined with increased household and insurance coverage.
He informed that the insurance coverage under the scheme has increased from Rs 1.6 lakh to Rs 5.3 lakh, and registration has grown from 50% to 90% in the last decade.
“The government is paying a premium of Rs 2,576 for every registered household. I am allocating an amount of Rs 180 crore for the continued implementation of MHIS in 2025-26. Out of this, Rs 5 crore is earmarked for financial assistance to citizens needing support beyond the standard MHIS coverage,” he informed.
Sangma also informed that the overall allocation to Health and Family Welfare Department for 2025-26 is Rs 2,176 crore, including Rs 1,664 crore from the state resources which is almost a 13% increase from this year.
Asserting that the government remains resolute in its commitment to building human capital, he informed that in the new phase of supporting human capital project, about Rs 150 crore will be invested to improve school infrastructure.
He informed that the overall allocation to Education department for next financial year is Rs 3,654 crore, including Rs 2,770 crore from the state resources; out of this Rs 1,403 crore is for grant-in-aid salaries and Rs 170 crore is for taking up capital works.
Further, Sangma informed that the FOCUS and FOCUS+ programmes are the State’s flagship DBT programmes for producer groups of farmers and individual farmers.
“The cash support allows farmers to solve their immediate local problems and improve production and productivity. I am increasing the annual support under FOCUS+ from Rs 5,000 to Rs 6,000 per household. I am allocating Rs 175 crore for implementation of FOCUS and FOCUS+ programmes in 2025-26,” the CM added.
He said that several large ongoing water supply projects will be completed in the next financial year. These include the Greater Shillong Water Supply Scheme, Nongstoin Urban Water Supply Scheme, Greater Ampati Water Supply Scheme, and Williamnagar Urban Water Supply Scheme.
The CM informed that the New Shillong Water Supply Scheme with an outlay of Rs 590 crore is progressing well.
According to him, the Greater Tura Urban Water Supply Scheme, with an investment of Rs 400 crore has been initiated recently.
Sangma said this scheme will secure Tura’s water supply until 2050, supporting households, institutions, businesses, and the town’s emerging tourism sector.
“I am allocating an amount of Rs 866 crore for capital works in water supply sector of which Rs 700 crore is from state resources, an increase of 54% over the previous allocation,” he added.