Meghalaya will receive Rs 9,637 crore as tax devolution from the Centre in the financial year 2026–27, a move expected to strengthen the state’s capacity to accelerate capital expenditure and infrastructure creation, officials said on February 2. Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in the Lok Sabha on February 1. Officials said the higher devolution would provide Meghalaya with greater untied resources, enabling the state to better support its developmental priorities.
Central transfers to Meghalaya have witnessed a steady rise over the past decade. According to an official statement, between 2014 and 2024, the Centre released Rs 69,335 crore to the state as tax devolution and Rs 40,452 crore as grants-in-aid, reflecting sustained expansion in fiscal support. Capital investment has also been bolstered through the Special Assistance to States for Capital Investment (SASCI) scheme, under which states receive 50-year interest-free loans, with the entire interest burden borne by the Centre.
Under SASCI, Meghalaya has received Rs 6,523 crore between 2020–21 and 2025–26 (till January 2026), enabling faster implementation of key capital projects, officials said. Infrastructure development in the state has seen significant progress, with over 1,156 km of National Highways constructed as of June 30, 2025. In addition, highway projects covering 170 km have been approved under the Bharatmala Pariyojana, involving an estimated investment of Rs 2,703 crore.