Shillong, 11 July 2025: Union Finance Minister Nirmala Sitharaman, currently on a three-day visit to Meghalaya, announced a substantial increase in central financial assistance to the state, underscoring the Centre’s commitment to inclusive development in the Northeast.

Addressing a public gathering in Shillong, Sitharaman revealed that Meghalaya received ₹48,883 crore in tax devolution between 2014 and 2024, marking a staggering 572% increase from the ₹7,273 crore received between 2004 and 2014. Additionally, the grants-in-aid allocation nearly doubled to ₹40,452 crore from ₹19,700 crore in the previous decade.

“This is not just a transfer of funds, but a transformative support system for states like Meghalaya to build capacity and infrastructure,” she remarked.

Interest-Free Loans & Capital Asset Creation
Sitharaman highlighted the Special Assistance to States for Capital Investment (SASCI) scheme, launched in the post-COVID period, under which ₹5.3 lakh crore in interest-free loans (repayable over 50 years) has been disbursed across states. The Northeast alone received ₹5,471 crore, helping to catalyze critical development projects.

Among the notable outcomes of the SASCI initiative:

Digitization of land records across 94% of India

Working women’s hostels have been constructed in 28 states

The scrapping of 25,000+ old government vehicles, reducing environmental impact

Over 10% growth in capital expenditure in 22 states, incentivized by ₹20,000 crore in performance-based grants

Digital Governance & Financial Transparency
The Finance Minister underscored the role of digital tools like the Single Nodal Agency (SNA) system in ensuring transparency and accountability in the utilization of central funds. These platforms have significantly improved governance efficiency and public financial management.

Youth Empowerment Through PM Internship Programme
Under the PM Internship Programme, over 36,760 internship opportunities have been rolled out across the Northeast during the second phase, with 114 slots in Meghalaya.

“This initiative helps youth gain hands-on experience, boosting employability and opening doors to promising career prospects,” Sitharaman said.

Strengthening Farmer Producer Organizations (FPOs)
A key focus of Sitharaman’s address was on rural and agricultural empowerment through the formation of 67 Farmer Producer Organizations (FPOs) in Meghalaya, covering high-value crops like turmeric, ginger, pineapple, oranges, and spices.

Some success stories include:

Tyngkong North FPO – known for banana and jackfruit chips, now reaching markets in Delhi

West Jaintia Hills FPO – crossing ₹1.1 crore in turnover

Eastern Bhoirymbong Organic FPO – engaging over 5,500 organic farmers

These FPOs have benefited from financial aid, credit access, and training support under the 2020 National FPO Scheme.

92 Meghalaya Villages Join Vibrant Villages Phase II
In a major announcement, Sitharaman confirmed that 92 villages in Meghalaya have been selected under Phase II of the Vibrant Villages Programme, aimed at revitalizing remote and border settlements.

The initiative will focus on:

Road infrastructure

Drinking water and sanitation

Primary healthcare

Skill development centres

Banking and digital access

“The goal is to ensure that the last village becomes the first priority in our development agenda,” Sitharaman concluded.

Conclusion
The Finance Minister’s announcements signal a bold economic push for Meghalaya, aligning with the Centre’s broader vision of regional parity, grassroots empowerment, and sustainable development. With record-breaking fund allocations and a strong focus on youth, farmers, and rural infrastructure, the state is poised for accelerated growth in the coming years.