Shillong: Meghalaya is chipping away at its debt. New data from the Reserve Bank of India shows the state’s debt-to-GSDP ratio is finally heading down. Total liabilities are expected to hit 39.1 percent by March 2026. This drops from the 39.8 percent recorded in previous estimates.
Borrowings are still climbing in absolute cash terms. The state economy is just growing faster. This gap keeps the fiscal math working in the government's favor. It marks a sharp break from the pandemic years. In 2020, the debt ratio spiked to 43.5 percent. It stayed above 42 percent for years following the outbreak.
The state leans heavily on central cash for major projects. Chief Minister Conrad K. Sangma recently touted a shift toward better numbers. While presenting the 2025-26 Budget, he projected a revenue surplus of over Rs 5,000 crore. This plan relies on higher tax collections and steady infrastructure investment.
Even with this dip, the outlook remains tight. Economists watch these figures to judge long-term stability. The report confirms that sustaining this path "will depend on maintaining robust economic growth, improving tax and non-tax revenue collections, and ensuring that future borrowings are directed towards productive capital investments capable of generating long-term economic returns."
Meghalaya still carries a heavier load than many neighbors. Only Arunachal Pradesh and Nagaland have higher debt ratios in the region. The state sits well above the 29.2 percent all-state average. Fiscal caution remains the order of the day.
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