Meghalaya has been allocated ₹9,631 crore under tax devolution in the Union Budget Estimates for 2026–27, significantly boosting the state’s pool of untied funds to support its developmental priorities. The increase reflects the Centre’s continued fiscal support to Meghalaya through higher tax transfers and enhanced assistance for capital investment. In addition to tax devolution, central support under the Special Assistance to States for Capital Investment (SASCI) has been expanded, enabling faster infrastructure development and higher capital expenditure. Between 2014 and 2024, Meghalaya received ₹69,339 crore as tax devolution and ₹40,452 crore in grants-in-aid from the Centre, underscoring sustained financial backing. Under the SASCI scheme, the state has received ₹6,523 crore between 2020–21 and January 2026 in the form of 50-year interest-free loans, fully funded by the Centre, to accelerate long-term infrastructure projects and asset creation.
The enhanced funding has translated into visible infrastructure improvements across sectors. In the road sector, more than 1,156 km of National Highways have been completed, with an additional 170 km approved under the Bharatmala Pariyojana at a tentative cost of ₹2,703 crore. Rural connectivity has also improved, with 88 roads spanning 782 km and 55 bridges sanctioned under PMGSY-III at an estimated cost of ₹1,056 crore. Rail connectivity in Meghalaya has expanded since the state was linked to the national railway network through the Dudhnoi–Mendipathar line in 2014. Electric train services began in March 2023, making Meghalaya and Nagaland fully electrified in terms of rail connectivity. Mendipathar railway station is now being redeveloped under the Amrit Bharat Station Scheme. Railway budget allocations for the Northeast have risen nearly fivefold, from an annual average of ₹2,122 crore during 2009–14 to ₹10,440 crore in 2025–26.
Air connectivity has also improved, with eight new routes operational under the RCS-UDAN and Krishi UDAN schemes.
The education and research landscape has received a boost with the establishment of an Indian Institute of Corporate Affairs campus and India’s first Gati Shakti Research Chair at IIM Shillong. Tourism and urban infrastructure have expanded under the PRASAD and Swadesh Darshan schemes, including projects such as the Meghalayan Age Cave Experience and the Waterfall Trails Experience at Sohra. Urban development has progressed with projects like the Polo Shopping Complex and Shillong’s inclusion under the Smart Cities Mission.
Industrial and special infrastructure development has been supported through initiatives such as UNNATI-2024, the Northeast Special Infrastructure Development Scheme, and PM-DevINE, which fund roads, bridges, IT parks, and tourism hubs. The Union Budget’s enhanced allocations have also strengthened welfare coverage in the state. As of January 2026, Meghalaya has 8.98 lakh PM Jan Dhan accounts and 10.9 lakh enrolments under PM Suraksha Bima Yojana. Over ₹3,330 crore has been disbursed in loans under PM Mudra Yojana. In addition, 5.42 lakh rural households have received tap water connections under the Jal Jeevan Mission, 3.17 lakh LPG connections have been provided under PM Ujjwala Yojana, and more than 21 lakh beneficiaries are covered under the PM Garib Kalyan Anna Yojana.