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Meghalaya State Budget 2007-08 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Meghalaya FY 2007-08

Meghalaya State Budget 2007-08 Budget at a Glance

Total Receipts

Rs 2,900 crore

(excl. borrowings)

Total Expenditure

Rs 3,420 crore

Fiscal Deficit

2.1%

Rs 220 crore

Capital Expenditure

Rs 620 crore

Tax Revenue

Rs 480 crore

Net to Centre

Interest Payments

Rs 300 crore

9% of expenditure

Meghalaya Revenue Receipts 2007-08

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 480 crore (60.0%)
Non-Tax Revenue
Rs 320 crore (40.0%)

Meghalaya Expenditure Breakdown 2007-08

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 81.9%
Capital Expenditure 18.1%

Fiscal Deficit as % of GSDP โ€” Meghalaya 2007-08

The fiscal deficit for Meghalaya in 2007-08 is 2.1% of GSDP (Rs 220 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Meghalaya is maintaining fiscal discipline close to the recommended limit.

Interest payments at Rs 300 crore consume 8.8% of total expenditure.

Meghalaya State Budget 2007-08 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 3,500 crore100%
1. Revenue ReceiptsRs 2,900 crore82.9%
a. Own Tax RevenueRs 480 crore13.7%
b. Non-Tax RevenueRs 320 crore9.1%
B. Total ExpenditureRs 3,420 crore100%
1. Revenue ExpenditureRs 2,800 crore81.9%
2. Capital ExpenditureRs 620 crore18.1%
of which: Interest PaymentsRs 300 crore8.8%
C. Fiscal DeficitRs 220 crore2.1% of GSDP

Source: Meghalaya State Budget Documents via PRS India. All figures in Indian Rupees.

Meghalaya Budget 2007-08 Analysis & Highlights

Key Highlights

  • Total expenditure of Rs 3,420 crore for the 'Abode of Clouds' state
  • Revenue receipts at Rs 2,900 crore with own tax revenue of just Rs 480 crore
  • Revenue surplus of Rs 100 crore reflects controlled spending
  • Fiscal deficit at 2.1% of GSDP (Rs 220 crore), within FRBM norms
  • Outstanding debt at Rs 3,100 crore with debt-to-GSDP at 29.5%
  • Interest payments of Rs 300 crore absorb 10.3% of revenue receipts
  • Capital expenditure at Rs 620 crore with road connectivity as priority
  • Coal mining contributes significantly to economy despite regulatory concerns
  • Limestone and cement industries anchor the manufacturing base
  • Cherrapunji-Mawsynram region receives world's highest rainfall creating infrastructure challenges
  • Matrilineal social structure influences land and property governance
  • GSDP at Rs 10,500 crore โ€” small economy dependent on primary activities

Compare Meghalaya Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2003-042004-052005-062006-072007-08
Total Expenditureโ€”โ€”โ€”โ€”Rs 3,420 crore
Revenue Receiptsโ€”โ€”โ€”โ€”Rs 2,900 crore
Capital Expenditureโ€”โ€”โ€”โ€”Rs 620 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”โ€”2.1%
Own Tax Revenueโ€”โ€”โ€”โ€”Rs 480 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Meghalaya State Budget 2007-08

The Meghalaya state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Meghalaya Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Meghalaya with other states

Side-by-side comparison of fiscal metrics across Indian states