Shillong: Meghalaya Chief Minister Conrad Sangma on Wednesday stated that the state has emerged as one of India’s most dynamic, ranking among the top ten fastest-growing states since the post-Covid era, currently holding the ninth position.
Addressing concerns raised in the recent State Finances Audit Report by the Comptroller and Auditor General (CAG) regarding fiscal deficit and outstanding debt, Sangma downplayed the figures, emphasizing the state’s rapid economic growth.
Speaking to the media, the chief minister said that Meghalaya is experiencing unprecedented economic momentum, with its economy projected to reach a landmark $10 billion by 2028. He noted that post-Covid, the state is on an accelerated growth path, with estimates suggesting it could become an $11.5 billion economy by 2028.
Sangma added that with the economic recovery from the Covid slump, Meghalaya’s growth rate is expected to stabilize around 12.5% annually.
“At this growth rate, we estimate the economy will reach $10.6 billion by 2028,” Sangma said.
Excluding the Covid year, Meghalaya’s decadal growth rate has been 10.82%, he noted, positioning the state to achieve the $10 billion target by 2028.
On the fiscal deficit, Sangma explained that the permissible deficit under the 15th Finance Commission is 3.5%, tied to power sector reforms.
“The Government of India tightly controls the level of deficit states can incur, setting limits from time to time,” he said.
Regarding the revenue deficit, Sangma highlighted that Meghalaya’s revenue balance shifted from a surplus of Rs 654 crore in 2021-22 to a deficit of Rs 44 crore in 2022-23, largely due to disruptions in mining, which impacted non-tax revenue. However, through enhanced fiscal discipline, the state turned this deficit into a surplus of Rs 1,408 crore in 2023-24.
Sangma also noted that the post-Covid launch of the ‘Special Capital Assistance to States for Capital Investment’ (SASCI/CAPEX) by the Government of India, offering 50-year interest-free loans for capital projects, has been effectively utilized by Meghalaya. The state’s CAPEX release from the Centre increased sixfold, from Rs 200 crore in 2020-21 to Rs 1,293 crore in 2023-24, amounting to a total of Rs 2,823.28 crore.
Sangma emphasized that since these loans are interest-free for 50 years, they function more like grants, despite being included in the state’s fiscal calculations by the Accountant General and the Government of India.
“To get a true picture of the fiscal deficit and outstanding debt, these loans should be excluded from the fiscal deficit and Debt-GSDP calculations,” Sangma concluded.
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