Shillong: Meghalaya is running out of cash. By August 2026, the state’s revenue surplus crashed to a mere Rs 6.39 crore, down from Rs 833.27 crore during the same period last year. The Comptroller and Auditor General of India confirmed this nosedive in its latest provisional accounts.
Revenue receipts hit Rs 6,647.62 crore, a slight dip from last year. Meanwhile, spending ballooned. Revenue expenditure jumped 13.4 percent to Rs 6,641.23 crore. The state is now almost entirely consuming its income to cover daily operations.
The government budgeted for a surplus of Rs 4,771.02 crore for the 2026-27 fiscal year. So far, only 0.13 percent of that target has materialized. By this time last year, the state had hit 16.55 percent of its goal. The data reveals a harsh reality for state coffers: "Several of the largest components of government spending are recurring commitments that have to be met irrespective of whether revenues grow at the same pace."
Fixed costs are the primary drivers. Salaries and wages climbed to Rs 2,127.98 crore, while pensions reached Rs 929.59 crore. Interest payments hit Rs 437.17 crore, and core revenue spending rose to Rs 3,146.49 crore. Tax revenue also dropped to Rs 5,348.39 crore, stung by a decline in the state's share of Union taxes, which fell to Rs 3,725.40 crore.
Bright spots remain thin. GST collections hit Rs 844.98 crore and sales tax rose to Rs 451.20 crore. The state also ramped up asset building, with capital expenditure growing 34 percent to Rs 1,076.99 crore. This marks 14.48 percent of the annual capital budget.
The fiscal deficit currently stands at Rs 1,060.25 crore against an annual target of Rs 2,671.67 crore. Total receipts and total expenditure balanced at Rs 7,718.23 crore, as the state leaned on borrowings to cover the gap.
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