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Meghalaya State Budget 2016-17 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Meghalaya FY 2016-17

Meghalaya State Budget 2016-17 Budget at a Glance

Total Receipts

Rs 7,200 crore

+16.1%

Total Expenditure

Rs 7,600 crore

+18.8%

Fiscal Deficit

1.7%

Rs 400 crore

Capital Expenditure

Rs 1,100 crore

+22.2%

Tax Revenue

Rs 1,500 crore

+15.4%

Interest Payments

Rs 500 crore

7% of expenditure

Meghalaya Revenue Receipts 2016-17

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1,500 crore (41.7%)
Non-Tax Revenue
Rs 2,100 crore (58.3%)

Meghalaya Expenditure Breakdown 2016-17

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 85.5%
Capital Expenditure 14.5%

Fiscal Deficit as % of GSDP โ€” Meghalaya 2016-17

The fiscal deficit for Meghalaya in 2016-17 is 1.7% of GSDP (Rs 400 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 500 crore consume 6.6% of total expenditure.

Meghalaya State Budget 2016-17 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 8,200 crore100%
1. Revenue ReceiptsRs 7,200 crore87.8%
a. Own Tax RevenueRs 1,500 crore18.3%
b. Non-Tax RevenueRs 2,100 crore25.6%
B. Total ExpenditureRs 7,600 crore100%
1. Revenue ExpenditureRs 6,500 crore85.5%
2. Capital ExpenditureRs 1,100 crore14.5%
of which: Interest PaymentsRs 500 crore6.6%
C. Fiscal DeficitRs 400 crore1.7% of GSDP

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

Meghalaya Budget 2016-17 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 7,600 crore with steady growth under Conrad Sangma's predecessor
  • Revenue receipts of Rs 7,200 crore with own tax revenue at Rs 1,500 crore
  • Revenue surplus of Rs 700 crore maintained through controlled spending
  • Fiscal deficit at 1.7% of GSDP (Rs 400 crore), conservative fiscal management
  • Outstanding debt at Rs 5,800 crore with debt-to-GSDP at 24.2%
  • Interest payments of Rs 500 crore absorb 6.9% of revenue receipts
  • Capital expenditure at Rs 1,100 crore expanding road and tourism infrastructure
  • Coal mining ban enforcement remains inconsistent creating underground economy
  • Cement exports to Bangladesh through border trade grow
  • Demonetisation disrupts informal economy heavily dependent on cash
  • Community-managed forests face pressure from commercial interests
  • GSDP at Rs 24,000 crore with nominal growth of 20%

Compare Meghalaya Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2012-132013-142014-152015-162016-17
Total Expenditureโ€”โ€”โ€”Rs 6,400 croreRs 7,600 crore
Revenue Receiptsโ€”โ€”โ€”Rs 6,200 croreRs 7,200 crore
Capital Expenditureโ€”โ€”โ€”Rs 900 croreRs 1,100 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”1.0%1.7%
Own Tax Revenueโ€”โ€”โ€”Rs 1,300 croreRs 1,500 crore

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

Understanding Meghalaya State Budget 2016-17

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