Meghalaya is set to be a 10 Billion$ Economy by 2027-28 along with a special emphasis on Climate Action

By India Education Diary Bureau Admin On Mar 23, 2023

Mumbai : Between 2018 to 2023, despite losing almost two years to the COVID pandemic, the government expenditure more than doubled from ₹ 9,528 crore during 2017-18 to ₹ 20,729 crore in 2022-23. This signifies improved governance and implementation capability.

Keeping in sync with this momentum, a ‘People’s Budget’ has been presented with Meghalaya pegged to become a 10 Billion$ Economy by 2027-28 and to be amongst the top 10 states of the country by 2032, when Diamond Jubilee of the Statehood would be celebrated. This Budget would be a culmination of a greater and vibrant economy that would catapult the State to the league where it aims to reach.

Key highlights and takeaways of this Budget

The Budget puts emphasis on a people-centric all-round development and hinges upon- Meghalaya becoming a 10 Billion$ Economy by 2027-28 and be amongst the top 10 states of the country by 2032.

State Finances

The GSDP of Meghalaya is estimated at ₹ 41,779 crore for the current financial year. For the next financial year, GSDP is expected to increase to ₹ 46,600 crore, an expected growth rate of 11.5%
Projected capital outlay for 2023-24 is an increase of 14% over the year 2022-23 and 38.5% over the year 2021-22. This substantial increase in capital expenditure will be the foundation for the projected increase in economic growth.

Primary Sector and Farmers’ Prosperity

Investing in the well-being of farmers is a core priority. The government will continue to implement numerous mission-mode interventions to increase the production of niche agricultural and horticulture crops.
An allocation of ₹ 50 crore has been made for the continued implementation of mission mode projects in agri and horti sectors, ₹ 11.3 crore for investment in fruit development with particular emphasis on improving the value chains, ₹5.6 crore for vegetable development.
Upper limit for interest-free working capital provided to Cooperatives upgraded from ₹ 50 lakh to ₹ 1 crore.
₹ 40 crore will be spent on PROGRESS – Prosperity of Grassroot Families through Livestock Interventions, ₹ 44.7 crore for the fisheries sector and ₹ 25 crore for the ambitious program ‘Meghalaya State Organic and Natural Farming Policy 2023’, that will make Meghalaya the national leader in organic cultivation.

Infrastructure

Vision of making Meghalaya a 10 Billion$ economy depends on sizeable capital investments. Investments made on infrastructure have a significant effect on economic growth.
To address the last mile connectivity issues in rural areas, ‘Chief Minister’s Rural Connectivity Scheme’ is introduced. Through this scheme, villages would be connected those are not covered under PMGSY.
An ‘Integrated Transport Network Development Plan’ and ‘Road Asset Management System’ in collaboration with the World Bank is being developed.
₹ 15.5 crore allocated towards improving air connectivity in the State.

Water supply

Given the excellent performance of the State in implementation of Jal Jeevan Mission, the Union Government has assured an amount of ₹ 3,700 crore for 2023-24. Ambitious plan has been drawn to provide tap connections to all the 6.3 lakh households.

Information Technology and Digital infrastructure

One of the core visions of the government is to provide internet connectivity to all the villages and improve the bandwidth across the State. About 1,000 uncovered villages are being targeted to be covered under the ‘4G USOF Project’ and the ‘4G Saturation Project.’
₹ 191 crore allocated towards various initiatives in the IT sector.

Infrastructure for Sports

Investment in Sports infrastructure has been unprecedented in the last five years. Similar investments in the next five years planned with a goal of developing Meghalaya as a national sports hub.

Infrastructure for Governance

Construction of the New Assembly building in New Shillong will be completed this year. Allocation ₹ 35 crore made towards the completion of this prestigious project.
Focus is also on construction and upgradation of Integrated Administrative Complexes, Block infrastructure, police infrastructure including police stations, housing and outposts. ₹ 37 crore allocated towards modernization of police infrastructure.

Infrastructure for Tourism

The tourism sector is a key churner for the State. The Tourism Policy 2023 has been approved. Public investments of around ₹ 2,000 Cr have been committed in the Tourism Sector for the next five-year period.

Urban Infrastructure

Population of Shillong urban cluster has grown substantially over the last two decades leading to several urban development challenges. New Shillong City will be built as a futuristic and sustainable city. It will be a hub for knowledge, creative, cultural and sports industries. Investment plan of about ₹ 5,000 crore chalked out on this ambitious project over the next five years.

Border infrastructure

Ten Land Custom Stations, Five Border Haats and one Integrated Check Post at Dawki – Tamabil is under construction. Proposals for creation of sixteen new border haats, upgradation of four Land Custom Stations into full-fledged Integrated Check Posts and establishment of one Land Custom Station

have been submitted with Government of India.

Digital Governance

Current year saw processing of all scheme proposals and release of funds been made paperless through the deployment of e-proposal system and the Budget Estimation Allocation Monitoring System. In 2023-24, these systems will be taken till the district and DDO level. Amount of ₹ 11 crore earmarked for this initiative.

Youth, Employment and Entrepreneurship

74% of Meghalaya is under the age of 35 years. The State’s future depends on investments for the youth.
Dedicated skills parks will be constructed at Shillong and Tura with investments of ₹ 50 crore each.
For Soft Skills Program – ASPIRE Meghalaya, ₹ 20 crore has been allocated. Youth Development Scheme and YESS Meghalaya will be expanded and ₹ 25 crore earmarked for these projects.
To support entrepreneurs further, upper limit of the Startup grant increased from ₹ 5 lakh to ₹ 7.5 lakh per entrepreneur. The size of the zero-interest scale-up loans increased from ₹ 25 lakh to ₹ 50 lakh.
Youth Budget is being increased to ₹ 2,215 crore in 2023-24 from ₹ 1,789 crore in 2022-23 thus giving an increase of 24%.

Education

Government is committed to improving the education scenario by investing on physical infrastructure as well as human resources.
New infrastructure is being constructed at 208 schools at a cost of ₹ 109 crore. Major upgradation of infrastructure is being taken up at 111 schools at a cost of ₹ 97 crore. Minor repairs are being taken up at about 1,750 schools with an estimated cost of ₹ 62 crore.
Streamline the process of scholarship disbursement for 2023-24 is being done. ₹ 180 crore allocated to support the students.
₹ 2,015 crore is earmarked for payment of salaries to teachers.

Economic empowerment of women

More than 200 ‘Cluster Level Federations’ of SHG women will be formalized as credit cooperative societies to provide banking services in the remote areas of the State. ₹ 248 crore allocated for SHG program.

Health Systems

Coverage of the Meghalaya Health Insurance Scheme has increased from 2 lakh households to about 4.7 lakh households over the last five years. Government plans to extend the coverage to all 8.4 lakh households over the next two years.
The overall investments in the health sector for 2023-24 is pegged at ₹ 1,805 crore, which is an increase of ₹ 109 crore over the revised estimates of 2022-23.

Environmental Conservation and Climate Action

Focusing on sustainability and building climate resilience are important components of the State’s growth strategy in order to address the centrality of the climate agenda.
State is implementing country’s largest ‘Payment for Ecosystem Services’ project called ‘Green Meghalaya.’ Under this program, communities are being incentivized to conserve forests.
About 50,000 hectares of forests will be protected under this program and ₹ 250 crore will be transferred to the communities over the next five years.

A Climate Action Budget for the first time this year has been presented. The overall allocation towards climate action for 2023-24 is ₹ 3,412 crore, which corresponds to about 15 % of the State’s budget.