Shillong, Sep 3: Chief Minister Conrad Sangma has provided a detailed clarification on Meghalaya’s debt situation, emphasizing that the state’s borrowing is well within permissible limits, with only ₹3,000 crore of the ₹27,000 crore budget sourced through public debt.
Speaking on the state’s financial management, Sangma said, “Our total budget for this fiscal year is ₹27,000 crore. Of this, only ₹3,000 crore is borrowed, which is permissible under the guidelines set by the Reserve Bank of India (RBI) and the Government of India. The rest of the budget is funded through various other sources, primarily tax collections and grants from the central government.”
Sangma explained that the majority of the state’s revenue comes from central taxes, which are distributed to states based on a formula determined by the Finance Commission. “Out of the ₹27,000 crore budget, approximately ₹10,000 crore comes from the share of central taxes. This is the portion of taxes collected by the Government of India and distributed to states,” he said.
The Chief Minister further broke down the state’s revenue sources, stating, “Our own tax collections, from business activities within the state and other sources, contribute about ₹4,000 crore. Additionally, we receive around ₹6,000 crore through centrally sponsored schemes like PMAY and other programs. We also receive grants from the Government of India, which amount to about ₹3,000 crore.”
Addressing the borrowing aspect, Sangma reassured that the ₹3,000 crore debt is a standard and necessary practice for states across the country. “This debt is within the limits set by the RBI and is a vital part of public finance. It allows us to invest in critical infrastructure projects like roads, hospitals, and other essential services,” he explained.
In conclusion, Sangma emphasized that Meghalaya’s financial management is sound and that the debt level is carefully controlled. “Our borrowing is within the permissible limits, and we are utilizing these funds to drive investments and development across the state. Debt and loans are essential tools in public finance, enabling us to build the infrastructure needed for our state’s growth,” he added.
This clarification aims to reassure the public and stakeholders that Meghalaya’s fiscal position is stable and that the state is on a strong path to continued economic development