Meghalaya GDP growth reached 12.03% in 2024-25, outpacing India’s GDP growth of 9.78%, according to the Comptroller and Auditor General (CAG). The state’s GSDP increased to Rs. 59,626 crore during the year. However, Meghalaya’s revenue receipts declined 4.58%, mainly due to lower central grants.
Meghalaya GDP Growth Outpaces India
Meghalaya’s Gross State Domestic Product (GSDP) increased from Rs. 53,223 crore in 2023-24 to Rs. 59,626 crore in 2024-25. The figures were reported in the CAG’s State Finances Audit Report, which was tabled in the Meghalaya Assembly on August 28.
The Meghalaya GDP growth rate of 12.03% was higher than India’s GDP growth of 9.78% during the same period. The strong expansion highlights the state’s economic growth even as its revenue performance weakened.
Revenue Receipts Decline in FY25
Meghalaya’s total revenue receipts fell from Rs. 17,977.86 crore in 2023-24 to Rs. 17,153.91 crore in 2024-25. This represents a decline of 4.58% during the year.
The main reason was a sharp fall in grants-in-aid from the Centre. Central grants declined 40.15%, from Rs. 5,574.86 crore in 2023-24 to Rs. 3,336.37 crore in 2024-25. The CAG report noted that this was the lowest level of central grants received by the state in five years.
Non-tax revenue also declined during the year. It fell 9.40% from Rs. 523.25 crore to Rs. 474.08 crore.
Union Tax Share Provides Support
The decline in central grants was partly offset by higher revenue from Meghalaya’s share of Union taxes and duties. This share increased 13.93% to Rs. 9,870.40 crore in 2024-25.
The state’s own revenue also improved. Combined tax and non-tax revenue increased 5.54% to Rs. 3,947.14 crore during the year.
Meghalaya GDP Growth Faces Revenue Mobilisation Gap
Despite stronger Meghalaya GDP growth, the state continued to depend heavily on central transfers. Central transfers accounted for 76.99% of Meghalaya’s total revenue receipts in 2024-25. The state’s own resources contributed 23.01%.
The CAG also highlighted a widening gap between economic growth and revenue mobilisation. The revenue receipts-to-GSDP ratio declined from 33.78% in 2023-24 to 28.77% in 2024-25.
The report observed that the growth of Meghalaya’s own tax revenue has generally remained below the pace of GSDP expansion. This indicates that revenue mobilisation has not kept up with the state’s economic growth.
CAG Calls for Stronger Revenue Mobilisation
The CAG recommended that Meghalaya broaden its tax base and strengthen tax compliance. It also called for better collection efficiency to improve the state’s own revenue generation.
Stronger revenue mobilisation could help Meghalaya reduce its dependence on central transfers and improve fiscal sustainability. The measures will also be important for supporting continued Meghalaya GDP growth while strengthening the state’s fiscal position.
Source: PSU Watch
