The Comptroller and Auditor General (CAG) of India has flagged significant fiscal management challenges in Meghalaya in its State Finances Audit Report for 2024-25, tabled in the state Legislative Assembly. While Meghalaya’s Gross State Domestic Product (GSDP) grew 12.03% to Rs 59,626 crore, surpassing India’s GDP growth rate of 9.78%, the state’s per capita income remained more than 26% below the national average. The report noted that Meghalaya continues to depend heavily on the Centre, with 76.99% of its revenue receipts coming from central transfers. Although capital expenditure rose to Rs 5,245.98 crore, the state recorded a post-audit revenue deficit of Rs 52.69 crore, missing its statutory revenue surplus target. The CAG found that a revenue surplus of Rs 72.71 crore reported by the Finance Department before the audit was overstated due to the misclassification of Rs 125.40 crore in expenditure. The fiscal deficit widened to Rs 5,184.01 crore, equivalent to 8.69% of GSDP, significantly above the 3.50% target under the Meghalaya Fiscal Responsibility and Budget Management Act. Total liabilities reached 44.61% of GSDP, exceeding the statutory ceiling of 28%. The CAG also described the state’s budget estimates as “not very realistic”, citing significant deviations in revenue and capital outlays. As of March 31, 2025, expenditure worth Rs 20,378.78 crore remained to be regularised, while pending utilisation certificates of Rs 5,428.54 crore and unadjusted contingency bills further pointed to gaps in financial controls. The report highlights the need for stronger fiscal discipline, more realistic budgeting and improved financial oversight.