Meghalaya's Economic Growth Surpasses National Average Despite Revenue Decline

In a recent report, Meghalaya's economy demonstrated impressive growth of 12.03% for the fiscal year 2024-25, exceeding the national GDP growth rate. However, this achievement comes alongside a notable decline in revenue receipts, primarily due to a significant reduction in central grants. The state's Gross State Domestic Product (GSDP) rose to Rs 59,626 crore, yet revenue receipts fell from Rs 17,977.86 crore to Rs 17,153.91 crore. The report highlights the need for Meghalaya to broaden its tax base and improve collection efficiency to ensure sustainable fiscal management. Discover more about the economic dynamics and challenges facing Meghalaya in the full article.

By Narendra Chaudhary Aug 31, 2026, 10:57 IST

Economic Performance Overview

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Shillong, Aug 31: In the fiscal year 2024-25, Meghalaya's economy experienced a remarkable growth rate of 12.03%, surpassing India's overall GDP growth of 9.78%. This growth occurred despite a 4.58% decline in the state's revenue receipts, primarily due to a significant drop in central grants, as reported by the Comptroller and Auditor General (CAG).

The Gross State Domestic Product (GSDP) of Meghalaya rose from Rs 53,223 crore in 2023-24 to Rs 59,626 crore in 2024-25, indicating robust economic activity during this period, according to the CAG's State Finances Audit Report presented in the assembly on August 28.

However, the state's revenue receipts decreased from Rs 17,977.86 crore to Rs 17,153.91 crore. This reduction was largely due to a staggering 40.15% cut in grants-in-aid from the central government, which fell from Rs 5,574.86 crore in 2023-24 to Rs 3,336.37 crore in 2024-25.

The report highlighted that this was the lowest level of central grants received by Meghalaya in the past five years.

Additionally, non-tax revenue saw a decline of 9.40%, dropping from Rs 523.25 crore to Rs 474.08 crore. This negative trend was somewhat mitigated by a 13.93% increase in Meghalaya's share of Union taxes and duties, which rose to Rs 9,870.40 crore in 2024-25.

Despite the rise in its own revenue, which increased by 5.54% to Rs 3,947.14 crore, Meghalaya continues to rely heavily on central transfers, which constituted 76.99% of its total revenue receipts in 2024-25. The state's own resources accounted for only 23.01%. This disparity between economic growth and revenue generation is also evident in the revenue receipts-to-GSDP ratio, which fell from 33.78% in 2023-24 to 28.77% in 2024-25.

The CAG noted that the growth rate of Meghalaya's own tax revenue has consistently lagged behind the GSDP growth rate.

To reduce reliance on central transfers and achieve sustainable fiscal management, the CAG recommended expanding the tax base, enhancing compliance, and improving collection efficiency.