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Meghalaya State Budget 2020-21 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Meghalaya FY 2020-21

Meghalaya State Budget 2020-21 Budget at a Glance

Total Receipts

Rs 10,500 crore

+2.9%

Total Expenditure

Rs 12,800 crore

+6.7%

Fiscal Deficit

6.1%

Rs 2,300 crore

Capital Expenditure

Rs 2,000 crore

+11.1%

Tax Revenue

Rs 2,200 crore

-4.3%

Interest Payments

Rs 900 crore

7% of expenditure

Meghalaya Revenue Receipts 2020-21

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 2,200 crore (44.0%)
Non-Tax Revenue
Rs 2,800 crore (56.0%)

Meghalaya Expenditure Breakdown 2020-21

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 84.4%
Capital Expenditure 15.6%

Fiscal Deficit as % of GSDP โ€” Meghalaya 2020-21

The fiscal deficit for Meghalaya in 2020-21 is 6.1% of GSDP (Rs 2,300 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's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 900 crore consume 7.0% of total expenditure.

Meghalaya State Budget 2020-21 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 13,500 crore100%
1. Revenue ReceiptsRs 10,500 crore77.8%
a. Own Tax RevenueRs 2,200 crore16.3%
b. Non-Tax RevenueRs 2,800 crore20.7%
B. Total ExpenditureRs 12,800 crore100%
1. Revenue ExpenditureRs 10,800 crore84.4%
2. Capital ExpenditureRs 2,000 crore15.6%
of which: Interest PaymentsRs 900 crore7.0%
C. Fiscal DeficitRs 2,300 crore6.1% of GSDP

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

Meghalaya Budget 2020-21 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 12,800 crore as pandemic spending adds to fiscal pressure
  • Revenue receipts decline to Rs 10,500 crore with COVID disrupting economic activity
  • Revenue deficit of Rs 300 crore as the pandemic strains the revenue account
  • Fiscal deficit at 6.1% of GSDP (Rs 2,300 crore), far exceeding FRBM norms
  • Outstanding debt surges to Rs 11,200 crore with debt-to-GSDP at 29.5%
  • Interest payments of Rs 900 crore absorb 8.6% of revenue receipts
  • Capital expenditure at Rs 2,000 crore maintained through central support
  • Tourism collapses as travel restrictions shut down the emerging sector
  • COVID cases remain relatively low due to geographic isolation
  • Market borrowings of Rs 2,400 crore under expanded pandemic limits
  • Education severely disrupted by school closures in poorly connected areas
  • GSDP contracts to Rs 38,000 crore reflecting pandemic impact

Compare Meghalaya Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2016-172017-182018-192019-202020-21
Total Expenditureโ€”โ€”โ€”Rs 12,000 croreRs 12,800 crore
Revenue Receiptsโ€”โ€”โ€”Rs 10,200 croreRs 10,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 1,800 croreRs 2,000 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”5.0%6.1%
Own Tax Revenueโ€”โ€”โ€”Rs 2,300 croreRs 2,200 crore

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

Understanding Meghalaya State Budget 2020-21

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