SHILLONG (PIB): The Union Budget 2026–27 has reinforced 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 infrastructure creation and capital expenditure.
As per the Budget Estimates for 2026–27, Meghalaya has been allocated ₹9,631 crore under tax devolution, providing the State with greater untied resources to pursue its developmental priorities. Between 2014 and 2024, Central transfers to Meghalaya have witnessed substantial growth, with ₹69,339 crore released as tax devolution and ₹40,452 crore as grants-in-aid, reflecting sustained fiscal support from the Centre.
Capital expenditure has received a major push through SASCI, under which States are provided 50-year interest-free loans, with the entire interest burden borne by the Centre, over and above Finance Commission recommendations. Meghalaya has received ₹6,523 crore under SASCI between 2020–21 and 2025–26 (till January 2026), with annual releases rising steadily to support faster implementation of infrastructure projects and durable asset creation.
Enhanced budgetary support has translated into tangible infrastructure development across sectors:
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Roads: Over 1,156 km of National Highways have been constructed in Meghalaya as of June 30, 2025. Under Bharatmala Pariyojana, development of 170 km of NH corridors has been approved at a tentative cost of ₹2,703 crore. Additionally, under PMGSY-III, 88 roads (782 km) and 55 bridges have been sanctioned with an investment of ₹1,056 crore.
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Railways: Meghalaya was connected to the railway network in 2014 with the commissioning of the Dudhnoi–Mendipathar line. The State received electric train services for the first time in March 2023 and, along with Nagaland, is now 100 per cent electrified. The Mendipathar railway station is being redeveloped under the Amrit Bharat Station Scheme.
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Aviation: Air connectivity has improved with the operationalisation of Shillong Airport under the RCS-UDAN scheme, enabling eight new air routes. The airport has also been included under the Krishi Udan Scheme to support farmers by facilitating transport of agricultural produce.
In the education sector, the foundation stone for the Indian Institute of Corporate Affairs campus was laid at IIM Shillong in July 2025, along with the establishment of India’s first Gati Shakti Research Chair.
Tourism infrastructure has received focused support, with over ₹29 crore sanctioned under the PRASAD scheme and ₹184 crore under the Swadesh Darshan Scheme. Under Swadesh Darshan 2.0, two projects have been approved in Sohra—the Meghalayan Age Cave Experience (₹32 crore) and the Waterfall Trails Experience (₹28 crore). Urban amenities have also improved with the inauguration of the Polo Shopping Complex in July 2025 and Shillong’s selection under the Smart Cities Mission.
Industrial development in the State has been bolstered by the Uttar Poorva Transformative Industrialisation Scheme (UNNATI–2024), approved by the Union Cabinet with an outlay of ₹10,037 crore for 10 years. Under the North East Special Infrastructure Development Scheme, 14 projects worth over ₹569 crore have been allotted to Meghalaya.
The PM-DevINE scheme, a 100 per cent Centrally funded initiative, has supported key projects including road development at New Shillong Township, a skywalk and tourist hub at Mawkdok (Sohra), and an IT Park at Tura in West Garo Hills.
Union Budget support has also strengthened the reach of flagship welfare schemes in Meghalaya. As of January 2026:
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8.98 lakh PM Jan Dhan accounts opened
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6.28 lakh enrolments under PM Jeevan Jyoti Bima Yojana
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10.9 lakh under PM Suraksha Bima Yojana
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₹3,330 crore disbursed under PM Mudra Yojana
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92,500 Atal Pension Yojana subscribers
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5.42 lakh rural households provided tap water under Jal Jeevan Mission
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3.17 lakh LPG connections under PM Ujjwala Yojana
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Over 21 lakh Ayushman cards issued
