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Meghalaya State Budget 2017-18 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Meghalaya FY 2017-18

Meghalaya State Budget 2017-18 Budget at a Glance

Total Receipts

Rs 8,200 crore

+13.9%

Total Expenditure

Rs 9,100 crore

+19.7%

Fiscal Deficit

3.2%

Rs 900 crore

Capital Expenditure

Rs 1,300 crore

+18.2%

Tax Revenue

Rs 1,800 crore

+20.0%

Interest Payments

Rs 600 crore

7% of expenditure

Meghalaya Revenue Receipts 2017-18

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1,800 crore (42.9%)
Non-Tax Revenue
Rs 2,400 crore (57.1%)

Meghalaya Expenditure Breakdown 2017-18

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 85.7%
Capital Expenditure 14.3%

Fiscal Deficit as % of GSDP โ€” Meghalaya 2017-18

The fiscal deficit for Meghalaya in 2017-18 is 3.2% of GSDP (Rs 900 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 600 crore consume 6.6% of total expenditure.

Meghalaya State Budget 2017-18 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 9,800 crore100%
1. Revenue ReceiptsRs 8,200 crore83.7%
a. Own Tax RevenueRs 1,800 crore18.4%
b. Non-Tax RevenueRs 2,400 crore24.5%
B. Total ExpenditureRs 9,100 crore100%
1. Revenue ExpenditureRs 7,800 crore85.7%
2. Capital ExpenditureRs 1,300 crore14.3%
of which: Interest PaymentsRs 600 crore6.6%
C. Fiscal DeficitRs 900 crore3.2% of GSDP

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

Meghalaya Budget 2017-18 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 9,100 crore under political transition to Conrad Sangma's NPP-BJP coalition
  • Revenue receipts of Rs 8,200 crore with own tax revenue at Rs 1,800 crore
  • Revenue surplus of Rs 400 crore as spending accelerates during election year
  • Fiscal deficit at 3.2% of GSDP (Rs 900 crore), rising from conservative lows
  • Outstanding debt at Rs 6,600 crore with debt-to-GSDP at 23.6%
  • Interest payments of Rs 600 crore absorb 7.3% of revenue receipts
  • Capital expenditure at Rs 1,300 crore with road connectivity as top priority
  • GST implementation disrupts small trader economy in Shillong and towns
  • NPP-BJP coalition takes charge after March 2018 elections
  • Tourism grows with national media coverage of living root bridges and Dawki
  • Illegal coal mining continues despite NGT ban creating enforcement challenges
  • GSDP at Rs 28,000 crore with services sector leading growth

Compare Meghalaya Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2013-142014-152015-162016-172017-18
Total Expenditureโ€”โ€”โ€”Rs 7,600 croreRs 9,100 crore
Revenue Receiptsโ€”โ€”โ€”Rs 7,200 croreRs 8,200 crore
Capital Expenditureโ€”โ€”โ€”Rs 1,100 croreRs 1,300 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”1.7%3.2%
Own Tax Revenueโ€”โ€”โ€”Rs 1,500 croreRs 1,800 crore

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

Understanding Meghalaya State Budget 2017-18

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