Photo Courtesy: India Today Group
Shillong: Meghalaya saw its economy surge by 12.03 percent in 2024-25. This performance beat India's national GDP growth of 9.78 percent. The state Gross State Domestic Product jumped from Rs 53,223 crore to Rs 59,626 crore. Despite this, total revenue receipts slid 4.58 percent to Rs 17,153.91 crore.
The Comptroller and Auditor General of India tabled these figures in the state Assembly on August 28. A massive 40.15 percent drop in central grants-in-aid triggered the shortfall. Funding from the Centre plunged from Rs 5,574.86 crore to Rs 3,336.37 crore. Cash flow hit a five-year low.
Non-tax revenue also dipped 9.40 percent to Rs 474.08 crore. The state's own tax and non-tax receipts climbed 5.54 percent to Rs 3,947.14 crore. A rise in the state share of Union taxes provided some relief, increasing 13.93 percent to Rs 9,870.40 crore. Still, dependency remains high. Central transfers made up 76.99 percent of total revenue.
The revenue-to-GSDP ratio dropped from 33.78 percent to 28.77 percent. The CAG noted that the growth in own tax revenue lagged behind the GSDP expansion. Audit officials issued a clear warning regarding fiscal health. The report stated, "The state should broaden its tax base, strengthen tax compliance and improve collection efficiency to increase revenue mobilisation." Such steps could help the state rely less on outside cash.
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