Shillong: Meghalaya’s revenue surplus has effectively evaporated. Provisional accounts from the Comptroller and Auditor General of India show the surplus dropped to Rs 6.39 crore by the end of August 2026. This is a massive slide from the Rs 833.27 crore surplus recorded during the same period last year. The state is now burning through its income just to cover daily costs.
Revenue receipts hit Rs 6,647.62 crore through August, slipping slightly from last year’s Rs 6,691.30 crore. Meanwhile, revenue expenditure surged by 13.4 per cent to Rs 6,641.23 crore. The government had aimed for a surplus of Rs 4,771.02 crore for the 2026-27 fiscal year. Right now, it has hit only 0.13 per cent of that goal.
Fixed costs are the primary driver of the deficit. Spending on core revenue accounts climbed to Rs 3,146.49 crore. Salaries and wages rose to Rs 2,127.98 crore, while pensions reached Rs 929.59 crore. Interest payments added another Rs 437.17 crore to the pile. These recurring costs leave little room for error.
The state continues to pump money into infrastructure despite the tightening belt. Capital expenditure reached Rs 1,076.99 crore by August, a 34 per cent jump from the previous year. This accounts for 14.48 per cent of the total annual capital budget. The state’s report concludes: "Put together, these figures show why the state’s finances are under pressure: 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."
Tax revenue struggled, falling to Rs 5,348.39 crore. While GST collections climbed to Rs 844.98 crore and sales tax hit Rs 451.20 crore, these gains were erased by a sharp drop in the state’s share of Union taxes. That figure fell from Rs 4,059.46 crore to Rs 3,725.40 crore. The fiscal deficit currently sits at Rs 1,060.25 crore against a yearly target of Rs 2,671.67 crore.
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