Centre’s Aid to Meghalaya Rises by 231% Over a Decade; Finance Minister Lauds ‘Unprecedented Support’

Union Finance Minister Nirmala Sitharaman, during her visit to Meghalaya on June 11, 2024, announced that central financial assistance to the state has significantly increased over the last decade. She revealed that between 2014 and 2024, the central government provided Meghalaya with a total of ₹89,335 crore through tax devolution and Grants-in-Aid, marking a 231% rise compared to the ₹26,973 crore given during the previous decade (2004–2014). This amounts to an increase of ₹62,362 crore.

Providing a detailed breakdown, Sitharaman pointed out that tax devolution alone witnessed a massive jump, rising from ₹7,273 crore in 2004–2014 to ₹48,883 crore in the last 10 years—an extraordinary increase of 572%. Additionally, Grants-in-Aid rose from ₹19,700 crore to ₹40,452 crore during the same period. She described this level of support as “unprecedented” and highlighted its transformative effect on Meghalaya’s developmental landscape.

Sitharaman emphasized that this substantial financial support has empowered the state to fast-track its infrastructure development projects, improve connectivity across regions, and enhance rural development initiatives. It has also played a key role in strengthening public services, particularly in the sectors of education and healthcare.

The finance minister also focused on the Scheme for Special Assistance to States for Capital Investment (SASCI), an initiative aimed at promoting long-term capital projects across states. Under this scheme, Meghalaya received ₹5,471 crore as part of a larger ₹5.3 lakh crore fund allocated to states across the country. Notably, the SASCI funds are disbursed as 50-year interest-free loans, helping states to invest in infrastructure without increasing fiscal burdens.

She informed that the entire North Eastern region was allotted ₹48,804 crore under SASCI, demonstrating the Centre’s commitment to bridging regional disparities and boosting development in the North East.

This substantial increase in financial support comes under the tenure of the BJP-led government, which came to power in 2014, replacing the Congress-led UPA government that ruled the Centre from 2004 to 2014. Sitharaman’s comments also subtly contrasted the development efforts of the two regimes, suggesting that the current government has provided more focused and consistent support to Meghalaya and other northeastern states.

Her remarks were made during a press conference as part of her four-day visit to Meghalaya, during which she is expected to assess development progress, interact with state officials, and highlight the Centre’s ongoing and future projects in the region.

In conclusion, Sitharaman’s announcement and data underscore a significant enhancement in the financial partnership between the central government and the state of Meghalaya. The dramatic increase in central funds and the launch of initiatives like SASCI have enabled the state to pursue holistic development goals, laying the foundation for long-term progress in infrastructure, connectivity, and public service delivery. This also reflects the Centre’s strategic focus on uplifting the northeastern region and ensuring balanced regional growth across India.