Meghalaya Budget 2025-26: CM Conrad Sangma Presents ₹1,970 Crore Deficit Budget

SHILLONG– Meghalaya Chief Minister Conrad K. Sangma today presented the state budget for the fiscal year 2025-26, unveiling a deficit budget of ₹1,970 crore. Delivered during the ongoing budget session of the Meghalaya Legislative Assembly, the budget reflects the state government’s ambitious vision to transform Meghalaya into a developed state by 2032 while keeping the fiscal deficit within the prescribed 3.5% cap.

Key Highlights of the Budget

The budget allocates significant resources to priority areas such as climate action, youth empowerment, and gender-focused initiatives.

A sum of ₹5,421 crore has been earmarked for climate-related projects, underscoring the state’s commitment to environmental sustainability.

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Youth development receives ₹3,329 crore, while gender-focused programs are allocated ₹6,219 crore, marking a substantial increase from the previous year’s budget.

Chief Minister Sangma emphasized the state’s economic growth trajectory, projecting that Meghalaya is on track to achieve its goal of becoming a USD 10 billion economy by 2028.

“Our annual growth rate for the period 2023-26 stands at an impressive 12.7 percent, and we are confident of meeting our target,” Sangma told the Assembly.

He highlighted that total estimated transfers from the Central government to Meghalaya are expected to rise to ₹20,568 crore in 2025-26, up from the revised estimates of the previous fiscal year.

Boosting Tourism and Local Economies

A notable feature of the budget is its focus on the booming tourism sector. The state government has increased subsidies for homestay entrepreneurs from 35% to 45%, aiming to support 2,000 new ventures in 2025-26. This move is expected to bolster rural economies and enhance Meghalaya’s reputation as a premier tourist destination.

Revenue and Expenditure Projections

On the revenue front, Sangma outlined that the state anticipates collecting ₹4,226 crore in 2025-26, including ₹2,094 crore from GST, ₹1,180 crore from taxes on sales and trade, and ₹682 crore from excise duties. These figures reflect the government’s efforts to strengthen its fiscal position while investing in development.

Legislative Context

The budget session, which began on February 28 and will continue until March 13, has already seen the introduction of key legislation, including the Meghalaya State Investment Promotion and Facilitation Bill 2025 and amendments to the Meghalaya Fiscal Responsibility and Budget Management Act. These measures align with the state’s broader economic strategy and adherence to national fiscal norms.

A Vision for the Future

In his address, Sangma reiterated the government’s commitment to inclusive growth and sustainable development. “This budget is a step toward realizing the Meghalaya Spirit – a vision of progress that balances economic growth with social welfare and environmental stewardship,” he said.

The Chief Minister’s optimistic outlook was echoed by Governor CH Vijayashankar earlier in the session, who highlighted the state’s potential to emerge as a $10 billion economy by 2028.

As Meghalaya navigates its path toward these ambitious goals, the 2025-26 budget sets the stage for transformative investments while addressing immediate fiscal challenges. With a focus on youth, gender equality, and sustainability, the state aims to carve out a distinct identity as a model of balanced development in India’s Northeast.