Shillong, February 2: The Union Budget has reaffirmed the Government of India’s commitment to Meghalaya’s development by significantly enhancing 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.
According to the Budget Estimates for 2026–27, Meghalaya has been allocated Rs 9,631 crore under tax devolution, providing the State with greater untied resources to advance its development priorities.
Between 2014 and 2024, Central transfers to Meghalaya have recorded a substantial increase, with Rs 69,339 crore released as tax devolution and Rs 40,452 crore as grants-in-aid, reflecting sustained growth in fiscal support from the Centre.
Capital investment has received a major boost under SASCI, which provides States with 50-year interest-free loans, with the entire interest burden borne by the Centre, over and above Finance Commission recommendations. Under this scheme, Meghalaya has received Rs 6,523 crore from 2020–21 to 2025–26 (up to January 2026), with annual releases rising steadily. This has enabled faster implementation of capital projects and long-term asset creation.
Infrastructure Gains Across Key Sectors
Enhanced budgetary support has translated into visible infrastructure development across Meghalaya. In the roads sector, more than 1,156 km of National Highways have been constructed in the State as of June 30, 2025. Under the Bharatmala Pariyojana, development of 170 km of National Highway corridors has been approved at a tentative cost of Rs 2,703 crore.
In rural connectivity, the Ministry of Rural Development sanctioned 88 roads measuring 782 km and 55 bridges under PMGSY-III on October 24, 2024, involving an estimated investment of Rs 1,056 crore.
In the railways sector, Meghalaya was brought onto the national railway map in 2014 with the commissioning of the Dudhnoi–Mendipathar railway line. The State received electric train services for the first time in March 2023, and Meghalaya, along with Nagaland, is now 100 per cent electrified. The Mendipathar railway station is currently being redeveloped under the Amrit Bharat Station Scheme.
The wider North-East region has seen a sharp rise in railway allocations, increasing from an annual average of Rs 2,122 crore during 2009–14 to Rs 10,440 crore in 2025–26, nearly a five-fold increase.
Air, Education, Tourism and Urban Development
Air connectivity has improved with the operationalisation of Shillong Airport under the RCS–UDAN scheme, with eight new air routes made operational. The airport has also been included under the Krishi Udan Scheme to facilitate transportation of agricultural produce.
In the education sector, the foundation stone for the Indian Institute of Corporate Affairs (IICA) campus was laid at IIM Shillong in July 2025, while India’s first Gati Shakti Research Chair has also been established at the institute.
Tourism and urban infrastructure have received focused attention, with over Rs 29 crore sanctioned under the PRASAD scheme and more than Rs 184 crore under the Swadesh Darshan Scheme. Two projects have been approved under Swadesh Darshan 2.0—the Meghalayan Age Cave Experience at Sohra at a cost exceeding Rs 32 crore, and the Waterfall Trails Experience at Sohra at nearly Rs 28 crore.
Urban amenities have also been strengthened with the inauguration of the Polo Shopping Complex in Shillong in July 2025, while Shillong has been selected under the Smart Cities Mission.
Industrial and Special Infrastructure Support
Industrial development in the State has been bolstered through multiple Central schemes. The Union Cabinet approved the Uttar Poorva Transformative Industrialisation Scheme (UNNATI–2024) with an outlay of Rs 10,037 crore over ten years to promote industrial growth and employment generation in the North-East.
Under the North East Special Infrastructure Development Scheme, 14 projects with an approved cost exceeding Rs 569 crore have been allotted to Meghalaya. Since the scheme’s inception, seven road and bridge projects worth Rs 459 crore and 116 other infrastructure projects valued at over Rs 1,737 crore have been approved.
The PM-DevINE scheme has supported several projects in the State, including a four-lane road and road upgradation at New Shillong Township, a skywalk and tourist hub at Mawkdok in Sohra, and an IT Park at Tura in West Garo Hills.
Additionally, on March 9, 2024, the Prime Minister inaugurated and laid the foundation stone for multiple projects worth over Rs 290 crore in Meghalaya, including the IT Park at Tura, road infrastructure at New Shillong Township, and the Farmers’ Hostel-cum-Training Centre at Upper Shillong.
Expanded Welfare Coverage
Union Budget support has also enabled wide coverage of flagship welfare schemes in Meghalaya. As of January 2026, over 8.98 lakh PM Jan Dhan accounts have been opened, with 6.28 lakh enrollments under PM Jeevan Jyoti Bima Yojana and 10.9 lakh under PM Suraksha Bima Yojana. Loans exceeding Rs 3.33 thousand crore have been disbursed under PM Mudra Yojana.
The State has more than 92,500 Atal Pension Yojana subscribers, 5,830 PM SVANidhi applications disbursed, 94,000 Kisan Credit Cards issued, and 5.42 lakh rural households provided tap water connections under the Jal Jeevan Mission. Additionally, over 3.17 lakh LPG connections have been released under PM Ujjwala Yojana, more than 21.3 lakh Ayushman cards created, over 21 lakh beneficiaries covered under PM Garib Kalyan Anna Yojana, and 1.79 lakh farmers supported under PM-KISAN.
