Meghalaya faces rising debt as liabilities reach Rs 26,601 crore

Meghalaya is facing significant fiscal challenges as its outstanding debt and other obligations reached Rs 26,601 crore as of March 31, 2025, according to the Comptroller and Auditor General (CAG) State Finances Audit Report for 2024-25. This represents an increase of Rs 5,081 crore from the previous year. The total liability stands at 44.61 per cent of the State’s GSDP, exceeding the state's target of 37.91 per cent.

The CAG report highlighted that of the Rs 21,787.44 crore in public debt, approximately 14.24 per cent is payable within one year, while 59.09 per cent is due within the next seven years. This concentration of repayments has raised concerns regarding liquidity pressure and rollover risks.

Leader of the Opposition Dr. Mukul Sangma has warned of a potential debt trap, cautioning that using new loans to service existing liabilities could lead to insolvency. Sangma called for a strict audit of project costs, alleging that some projects funded by borrowed money have been “highly inflated.” He specifically questioned the costs of a major water supply scheme valued at approximately Rs 850 crore and urged for greater accountability in how borrowed funds are utilized.