Shillong, Feb 1: The Meghalaya government has welcomed the Union Budget 2026–27, saying it provides a forward-looking roadmap anchored in fiscal prudence, sustained public investment and balanced regional development, while noting that hill states continue to face constraints in untied fiscal space.
In an official statement, the Finance Department said the Budget’s increase in public capital expenditure to ₹12.2 lakh crore would reinforce infrastructure-led growth, supported by targeted investments in education, healthcare, tourism, agriculture, skilling and technology-enabled governance.
The state government also welcomed the enhancement of allocations under the Special Assistance to States for Capital Investment (SASCI) to ₹1.85 lakh crore for 2026–27, describing the support as instrumental in advancing capital-led development and strengthening infrastructure growth in Meghalaya.
The Budget reiterates a clear policy thrust on the North-Eastern Region, recognising its strategic importance, ecological sensitivity and untapped economic potential. According to the statement, targeted measures across connectivity, tourism, agriculture, healthcare and human capital development are expected to support growth and employment generation in the region, aligning closely with Meghalaya’s priorities in eco-tourism, tribal livelihoods, youth skilling and sustainable agriculture.
On sectoral measures, the government said the proposed ₹10,000 crore SME Growth Fund would help scale up micro, small and medium enterprises and promote women-led entrepreneurship. Continued expansion of central capital expenditure and focus on Tier-II and Tier-III growth centres are expected to strengthen physical and digital connectivity, particularly in hilly and remote areas.
Tourism-related proposals—including the establishment of a National Institute of Hospitality, the National Destination Digital Knowledge Grid and promotion of sustainable tourism models—were seen as significant opportunities for Meghalaya’s community-led tourism economy. The Budget also proposes a pilot programme to upskill 10,000 tourist guides across 20 iconic destinations through a 12-week hybrid training programme in collaboration with a premier management institution.
In education, initiatives such as University Townships, the establishment of one girls’ hostel in every district in STEM institutions, and the Education-to-Employment framework are expected to improve access, equity and employability for the state’s youth, particularly in tribal and rural districts.
Healthcare measures, including the expansion of allied health institutions, strengthening of emergency and trauma care facilities, and exemption of Basic Customs Duty on 17 cancer drugs, are expected to improve healthcare capacity while reducing the cost of critical treatments.
The statement also highlighted targeted support for agriculture and rural livelihoods, including a focus on agarwood cultivation in the Northeast, AI-enabled advisory services through Bharat-VISTAAR, and promotion of women-led enterprises through SHE-Marts.
On fiscal transfers, the Meghalaya government said it is examining the recommendations of the 16th Finance Commission and their implications for the state’s fiscal capacity. While the overall divisible pool of central taxes remains unchanged nationally, the state noted that revisions in horizontal devolution parameters have moderated Meghalaya’s relative share, resulting in constrained untied fiscal space for hill states despite higher per-unit costs of service delivery.
For 2026–27, Meghalaya has been allocated ₹190 crore for Rural Local Body grants, ₹49 crore for Urban Local Body grants, ₹63 crore under the State Disaster Response Fund and ₹16.20 crore under the State Disaster Mitigation Fund. The government said these transfers would support grassroots governance, urban services and disaster preparedness, even as development needs remain significant due to climate vulnerability and high infrastructure costs.
