Shillong : Meghalaya Chief Minister Conrad K Sangma on Monday tabled a deficit budget of Rs 2,672 crore for 2026-27, pegging the shortfall at around 3.5% of the state’s Gross State Domestic Product (GSDP), while announcing a record capital outlay of Rs 10,211 crore.

Presenting the budget in the Meghalaya Assembly, Sangma – who also holds the Finance portfolio – said total receipts for the fiscal are projected at Rs 32,000 crore, with total expenditure estimated at Rs 32,023 crore.

Excluding borrowings of Rs 5,379 crore, total receipts are estimated at Rs 26,621 crore. Revenue receipts are projected at Rs 26,583 crore, while capital receipts stand at Rs 5,417 crore.

On the expenditure side, total spending is pegged at Rs 32,023 crore, comprising revenue expenditure of Rs 21,812 crore and capital expenditure of Rs 10,211 crore. After excluding loan repayments of Rs 2,731 crore, the effective total expenditure is estimated at Rs 29,293 crore, leaving a fiscal deficit of Rs 2,672 crore.

Highlighting a significant milestone, Sangma said capital expenditure has crossed Rs 10,000 crore for the first time in the state’s history. The projected capital outlay of Rs 10,211 crore for 2026-27 marks a seven-fold increase from Rs 1,435 crore in 2017-18.

“This reflects our commitment to building long-term infrastructure and productive assets across sectors,” the Chief Minister said.

He informed that Meghalaya is among the top-performing states under SASCI, an interest-free grant-like facility, with estimated receipts of Rs 4,500 crore in 2026-27 – a 67% increase. These funds will be channelled into ongoing and new capital projects.

Additionally, the government has set a target of mobilising new Externally Aided Projects (EAPs) worth Rs 15,000 crore in sectors such as roads, power, healthcare, urban infrastructure, and human development. Sangma noted that nearly 90% of the repayment burden for these projects is borne by the Government of India.

Releases under Centrally Sponsored Schemes have more than doubled over the past decade, rising from Rs 2,965 crore in 2017-18 to an estimated Rs 6,833 crore in 2026-27. The Chief Minister stated that the state is projecting a revenue surplus of Rs 4,771 crore and a closing balance of Rs 714 crore.

Interest payments for 2026-27 are estimated at Rs 1,540 crore, while pension payments are projected at Rs 1,980 crore, reflecting rising committed expenditure. Sangma said the government is presenting a climate, youth, gender and SDG-focused budget framework this year.

The climate budget for 2026-27 stands at Rs 5,572 crore, marking a 2.8% increase over the previous fiscal. The youth budget has been pegged at Rs 4,824 crore – a sharp 45% increase – while the gender budget allocation stands at Rs 6,849 crore, up 10%.

Key sectoral allocations for 2026-27 include:

• ” Health: Rs 2,472 crore

• ” Education: Rs 3,347 crore

• ” Agriculture and allied sectors: Rs 664 crore

• ” Urban Affairs: Rs 1,540 crore

• ” Tourism: Rs 376 crore

The allocations reflect continued emphasis on social infrastructure and economic growth drivers.

Sangma asserted that Meghalaya is now the second fastest-growing state in India and the only state to sustain nearly 10% real GSDP growth for three consecutive post-COVID years.

He said the government’s focus on capital formation, infrastructure expansion, and leveraging central assistance has strengthened fiscal capacity while enabling higher investments in priority sectors.

The budget, while projecting a moderate fiscal deficit, signals an aggressive push towards infrastructure creation and sectoral development, with the government banking on sustained economic growth and central support to maintain fiscal stability.