Meghalaya’s economy grew by 12.03% in 2024-25, significantly faster than India’s GDP growth of 9.78% during the same period, according to the Comptroller and Auditor General of India (CAG). However, the state’s revenue receipts declined by 4.58% during the year. The CAG attributed the decline mainly to a sharp fall in grants-in-aid from the Centre. The findings appeared in the CAG’s State Finances Audit Report for Meghalaya, which the state Assembly tabled on August 28. The report also highlighted Meghalaya’s continued dependence on central transfers.
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Key Facts
- State: Meghalaya
- Economic growth: 12.03% in 2024-25
- India’s GDP growth: 9.78%
- Revenue receipts: ₹17,153.91 crore
- Revenue decline: 4.58%
- Central grants: Fell 40.15% to ₹3,336.37 crore
- State share of Union taxes: ₹9,870.40 crore
- Report: CAG State Finances Audit Report
- Report tabled: August 28
Meghalaya Economy Outpaces National Growth
Meghalaya recorded strong economic growth in 2024-25. The state’s economy expanded by 12.03%, while India recorded GDP growth of 9.78% during the same period.
However, the stronger economic performance did not translate into higher overall revenue receipts. According to the CAG report, Meghalaya’s revenue receipts fell from ₹17,977.86 crore in 2023-24 to ₹17,153.91 crore in 2024-25.
That represents a decline of 4.58% in one year.
Central Grants Fall Sharply
The major reason behind the decline was a substantial reduction in grants-in-aid from the Centre. Central grants fell by 40.15%, from ₹5,574.86 crore in 2023-24 to ₹3,336.37 crore in 2024-25.
The CAG noted that Meghalaya received its lowest amount of central grants in five years during 2024-25.
Meanwhile, the state’s non-tax revenue also declined. It fell by 9.40%, from ₹523.25 crore to ₹474.08 crore.
State’s Share of Union Taxes Increases
Despite the decline in central grants, Meghalaya received a higher share of Union taxes and duties. The state’s share increased by 13.93% to ₹9,870.40 crore during 2024-25.
At the same time, Meghalaya’s own revenue also improved. Tax and non-tax revenue together increased by 5.54% to ₹3,947.14 crore.
However, the increase was not enough to offset the sharp decline in central grants and non-tax revenue.
Meghalaya Remains Dependent on Central Transfers
The CAG report highlighted Meghalaya’s continued dependence on financial transfers from the Centre.
Central transfers accounted for 76.99% of Meghalaya’s total revenue receipts in 2024-25. In comparison, the state’s own resources contributed only 23.01%.
The report also pointed to a widening gap between economic growth and revenue mobilisation. Meghalaya’s revenue receipts-to-GSDP ratio declined from 33.78% in 2023-24 to 28.77% in 2024-25.
CAG Suggests Measures to Improve Revenue
The CAG observed that Meghalaya’s own tax revenue has generally grown more slowly than the state’s GSDP.
Therefore, the audit report recommended that the state broaden its tax base, improve tax compliance and strengthen collection efficiency.
According to the CAG, these measures could help Meghalaya increase its own revenue and reduce its dependence on central transfers. Stronger revenue mobilisation could also support more sustainable fiscal management in the state.
What Was Meghalaya’s Economic Growth in 2024-25?
Meghalaya’s economy grew by 12.03% in 2024-25, compared with India’s GDP growth of 9.78%.
Why Did Meghalaya’s Revenue Receipts Decline?
The main reason was a 40.15% fall in central grants, along with a decline in non-tax revenue.
How Much Revenue Did Meghalaya Collect?
The state recorded total revenue receipts of ₹17,153.91 crore in 2024-25.
How Dependent Is Meghalaya on the Centre?
Central transfers accounted for 76.99% of Meghalaya’s total revenue receipts during 2024-25.
What Did the CAG Recommend?
The CAG recommended widening the tax base, improving tax compliance and increasing collection efficiency to strengthen Meghalaya’s revenue position.
Location Context
Meghalaya is an important state in Northeast India, with a growing economy and significant dependence on central financial transfers. The CAG findings highlight the need to strengthen the state’s own revenue base while maintaining economic growth.