in meghalaya

Meghalaya Tax and economic reforms

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Meghalaya Goods and Service Tax:

The Meghalaya government introduced in the state assembly, the Meghalaya Goods and Services Tax Bill, 2017.  GST will abolish all the taxation related disputes between the States and this will make Indian economy more strong. It was the highest tax reforms of state and centre as well.

The Meghalaya government demanded the following amendments —

  • The GST Council accepted that green arecanut will be tax-free while processed arecanut or ‘supari’ will be taxed at 5 per cent only. So is also the case with dry fish in which the Council has agreed to bring down the tax from 12 per cent to 5 per cent
  • The other issues Meghalaya government had demanded was the reduction from Rs 50,000 to Rs 10,000 where a purchaser is not required to give his details in the invoice.

Goods and Services Tax (GST) is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India. GST would replace respective taxes levied by the central and state governments.

What is GST?

  • It is a destination-based taxation system.
  • It has been established by the 101st Constitutional Amendment Act.
  • It is an indirect tax for the whole country on the lines of “One Nation One Tax” to make India a unified market.
  • It is a single tax on supply of Goods and Services in its entire product cycle or life cycle i.e. from manufacturer to the consumer.
  • It is calculated only in the “Value addition” at any stage of a goods or services.
  • The final consumer will pay only his part of the tax and not the entire supply chain which was the case earlier.
  • There is a provision of GST Council to decide upon any matter related to GST whose chairman in the finance minister of India.

What taxes at center and state level are incorporated into the GST?

At the State Level

  • State Value Added Tax/Sales Tax
  • Entertainment Tax (Other than the tax levied by the local bodies)
  • Octroi and Entry Tax
  • Purchase Tax
  • Luxury Tax
  • Taxes on lottery, betting, and gambling

At the Central level

  • Central Excise Duty
  • Additional Excise Duty
  • Service Tax
  • Additional Customs Duty (Countervailing Duty)
  • Special Additional Duty of Customs

Benefits of GST

For Central and State Governments

  • Simple and Easy to administer: Because multiple indirect taxes at the central and state levels are being replaced by a single tax “GST”. Moreover, backed with a robust end to end IT system, it would be easier to administer.
  • Better control on leakage: Because of better tax compliance, reduction of rent seeking, transparency in taxation due to IT use, an inbuilt mechanism in the design of GST that would incentivize tax compliance by traders.
  • Higher revenue efficiency: Since the cost of collection will decrease along with an increase in the ease of compliance, it will lead to higher tax revenue.

For the Consumer

  • The single and transparent tax will provide a lowering of inflation.
  • Relief in overall tax burden.
  • Tax democracy that is luxury items will be taxed more and basic goods will be tax-free.

For the Business Class

  • Ease of doing business will increase due to easy tax compliance.
  • Uniformity of tax rate and structure, therefore, better future business decision making and investments by the corporates.
  • Removal of cascading effects of taxes.
  • Reduction in transactional cost will lead to improved competitiveness.
  • Gain to the manufacturer and exporters.
  • It is expected to raise the country GDP by 2% points.

GST Council

  • It is the 1st Federal Institution of India, as per the Finance minister.
  • It will approve all decision related to taxation in the country.
  • It consists of Centre, 29 states, Delhi and Puducherry.
  • Centre has 1/3rd voting rights and states have 2/3rd voting rights.
  • Decisions are taken after a majority in the council.

Supporting Laws to implement GST

For the implementation of GST, apart from the Constitution Amendment Act, some other statutes are also necessary. Recently 5 supporting laws to the GST were recommended by the council. 4 for the bills should be passed by the parliament, while the 5th one should be passed by respective state legislatures. The details are given below.

  • The Central Goods and Services Tax Bill 2017 (The CGST Bill).
  • The Integrated Goods and Services Tax Bill 2017 (The IGST Bill).
  • The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill).
  • The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).
  • And a state GST will be passed by the respective state legislative assemblies.
  • Tax slabs are decided as 0%, 5%, 12%, 18%, 28% along with categories of exempted and zero rated goods for different types of goods and services.
  • Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States.
  • However, which goods and services fall into which bracket is still an enormous task to be completed by the GST council.
  • Highest tax slab is pegged at 40%.

DEMONETIZATION AND CASHLESS ECONOMY

What is Demonetization?

  • It is a financial step where in a currency unit’s status as a legal tender is declared invalid.
  • This is usually done when old currency notes are to be replaced with the news ones.
  • The 500 and 1000 rupee notes seized to be a legal tender from 8 November, 2016.

A brief past

  • Demonetisation was earlier done in 1978 When the government demonetised Rs. 1000, Rs. 5000 and Rs. 10000 notes.
  • This was done under the High Denomination Bank Note (Demonetisation) Act, 1978.
  • The difference between 1978 and 2016 Demonetisation is that the currency in circulation (of the higher denomination) is higher in 2016 than was in 1978.
  • The current demonitization has been done by government under section 26(2) of the Reserve Bank of India Act.

 

Implications of Demonetization

  • A parallel black economy would collapse.
  • Of the Rs 17 lakh crore of total currency in circulation in the country, black money is estimated at mind-boggling Rs 3 lakh crore.
  • Counterfeit currency: Death blow to the counterfeit Indian currency syndicate operating both inside and outside the country.
  • On Employment: a large part of the Indian economy is still outside the banking system. So, the cash shortage will hurt the informal sector that does most of its transactions in cash.
  • On elections: It will reduce the Vote-for-Note politics making elections more clean and transparent.
  • On Economy:
  • First, it will bring more borrowings to the exchequer, improve inflation outlook and increase India’s gross domestic product (GDP).
  • Second, it will revive investment opportunities and give a fillip to infrastructure and the manufacturing sector.
  • Third, it will help reduce interest rates and lower income tax rate.
  • Real estate cleansing: An unexpected dip in land and property prices.
  • On Higher Education: will become more reachable as the black money from ‘high capitation fees’ is discouraged.
  • On security:
  • Terror financing: Terror financing is sourced through counterfeit currency and hawala transactions.
  • Kashmir unrest: The four-month-long unrest in Kashmir valley is on a backburner
  • North-East insurgency and Maoists: Black money is the oxygen for Maoists collected through donations, levy and extortions. The illicit money is used to purchase arms and ammunition

Economic Reforms:

The basic objective of economic reforms was to improve productivity growth and competitiveness in the Indian manufacturing sector. These reforms were aimed at making Indian manufacturing sector more efficient and technologically up to date, with the expectation that these changes would enable Indian manufacturing sector to achieve higher and sustainable growth. The government started to deregulate the Indian economy with a liberalization programme, focused on the investment pattern, trade policies, the financial sector, taxation and public enterprises.

In recent times, Industrialization has become the catch word of the midtwentieth century and industrial development of the under developed countries or developing countries like India. One of the great world crusades of our times, the Less Developed Countries (LDCs) hope to find in it a solution their problems of poverty, insecurity, overpopulation, backwardness, illiteracy etc. They consider it a panacea for all the evils of their social and economic life. In fact, the essence of economic development of an LDC like India consists essentially in the growth of industrialization.

Realizing the importance of industrialization, once Pt. Jawaharlal Nehru rightly remarked, “Real progress must ultimately depend on industrialization”. His vision was to see India in the group of developed nations of the world and industrialization was the only key to restructure the economy and to achieve sustained growth. Indian economy is a basically an agriculture based economy. It has been evident from the experience of the most of advanced countries that growth based upon agriculture sector will not be sustainable growth.

After studying such behavior of terms of trade they made their belief that for the agriculture based economies terms of trade would always become unfavorable in long run because;

  1. a) The income elasticity of export-goods of agricultural countries is low, while the income elasticity of import-goods is very high. As in case of domestic demand, the demand for agricultural products in other countries, in particular advance countries, is very low. In fact, developed countries have surpluses in agriculture products for exports. As against this, the demand for the import of manufactured goods by LDCs is very intense; and
  2. b) With the advancement of technology, input-output coefficients are declining and most of primary products which were used as raw material are replaced by the industrial cheaper raw material.

On the other hand, if we develop only tertiary sector and ignore industrial sector then there may be tendency of inflation in the economy and this inflation may lead to deceleration economic growth. Therefore, industrialization is the only method to achieve sustained economic growth. Moreover, economic history demonstrates that to eliminate a country’s techno-economic backwardness it is necessary to develop the industrial sector and then to diversify it over a wide range of area and activities. Industrialization is a process of economic organization characterized by rapid setting up of industries and has invariably been the accompaniment of economic development. Nevertheless, economic development should not be treated synonymous with industrialization because industrialization is only a part of the whole process of economic development.

Some of the major initiatives taken by the government to promote Meghalaya as an investment destination are:

  • Under budget 2016-17, the state government proposed allocation of US$ 1.98 million for various art and cultural programs for the development, augmentation and preservation of cultural heritage of the state.
  • Under budget 2016-17, the state government proposed an allocation of US$ 103.42 million for development of education sector in the state.
  • Under the annual budget 2015-16, an investment of US$ 0.29 million has been approved by the Meghalaya State Medicinal Plants Board to increase the production of medicinal plants.
  • The state government has also proposed an outlay of US$ 32.13 million to improve power supply in the state and associated services, power losses in urban areas, etc., under the Restructured Accelerated Power Development and Reforms Programme.
  • An investment of US$ 3.98 million was proposed to be invested for the development of roads and bridges in the state and US$ 54.66 million was proposed for the improvement of the agriculture sector of the state under the 12th Five Year Plan (2012-2017).
  • The state is focusing on developing water harvesting and distribution infrastructure to increase the level of mechanisation in the horticulture sector.
  • Hydroelectric power projects with a total capacity of 687 MW have been proposed to be set up in Meghalaya. All these projects are projected to be operational by 2016-17.
  • The state government is inviting investments in this area through the PPP mode. Independent power producers (IPPs) are also being invited to develop hydro projects in Meghalaya; this provides immense potential for investment.

Animal husbandry in Meghalaya

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Animal husbandry in Meghalaya

Livestock including Poultry is an integral part of agriculture and contributes significantly to rural economy. While agriculture contributes about 30% of the total output of GDP, livestock including poultry constitutes about 25% of the total agricultural output. Rearing of livestock and poultry is an age old practice in the country with no exception to the State of Meghalaya. Livestock production has a much larger contribution to manpower employment than agriculture, while eggs, milk and meat production help in stepping up crop production through the availability of cash to the livestock farmer which is utilised for purchase of seed, manure and fertilizers for agricultural operation. Establishment of dairy, poultry, goat, pig farms help solve unemployment problems and provide valuable protein, vitamin and mineral rich materials like eggs, milk and meat. Organic manure from livestock and poultry enrich the soil for higher production of crop, vegetable and flower as well as horticultural produce.

In the State of Meghalaya, due to peculiar topography, varying climatic situation and socio-economic condition, the agriculture operation constitute to only about 10% of the total land under cultivation, thereby livestock and poultry provide the alternative avocation to the farmers for a subsidiary living.

Though the present output of livestock production in the State has been increasing at higher proportion to the growth of human population, the overall availability situation is not encouraging to the extent that as against the requirement of 220 gm of milk per person per day, only 75 gm is now available in the State. Similarly, availability of eggs per person per year is only 35 as against the requirement of 150. Therefore greater efforts are necessary to close the gap between demand and supply.Animal husbandry in Meghalaya

The department of Animal husbandry & Veterinary has taken up various measures to bring about a noticeable improvement in production, processing and marketing of livestock and livestock products. One such measure is to establish more farms with quality germplasm for making availability to farmers.

 

The activities of the Department were mainly centred round the broad objectives of :

  • Providing Health coverage to the Livestock and poultry population from the ravages of diseases through treatment and preventive vaccination.
  • Introducing improved breeding techniques for upgrading the Local Stock.
  • Ensuring better Animal Husbandry practices through scientific adoption and approach of Extension and Research.
  • Building up of adequate technical and professional man-power through Education and Training.
  • Encouraging setting up of livestock and poultry industries.

Infrastructure of the Animal Husbandry and Veterinary Department

Veterinary Hospital – 4

Veterinary Dispensaries – 113

Veterinary Aid Centres – 50

Mobile Veterinary Dispensaries – 15

Vigilance Unit – 7

Stockman Centres – 34

Key Village Centres – 15

Check Posts – 4

Disease Diagnostic Laboratories – 8

Cattle farm – 4

Buffalo Farm – 1

Poultry farm – 13

Pig farm – 13

During the last 40 years, the Department of Animal Husbandry and Veterinary has initiated various developmental programmes on different aspects of Livestock and Poultry sector for the interest of the State in general and the farmers in particular are as follows:

  • Cattle & Buffalo Development
  • Fodder Development
  • Poultry Development
  • Piggery Development
  • Sheep, Goat & Rabbit Development
  • Animal Health & Veterinary Services
  • Veterinary Research
  • Education and Training
  • Dairy Development
  • Subsidy Schemes
  • CSS Schemes

Cattle and buffalo development

This is an integrated programme of cattle & buffalo development which includes breeding, feeding and management practices to boost up milk production as well as to develop a suitable marketing network for milk and other milk products. There are four Cattle Farm and one Buffalo Farm in the state of Meghalaya. The department is also having 2 Intensive Cattle Development Project (ICDP) Centre for production of quality semen by establishing Liquid Nitrogen Plant. One at Upper Shillong and one at Tura. Artificial Insemination programmes in cattle are carried out in the field through 40 Stockman Centres and Key Village Centres spread throughout the State. The Objective is to upgrade the local cows and to augment milk production in the State.

Piggery development

Since the demand of pork in the State of Meghalaya is very high, the Government have established 13 Pig Farms in the State with the ultimate aim to augment production of pork. Pigs from these farm are being distribute to the farmers for further multiplication and up gradation of local stock The Pig farms are (i)Regional Pig Breeding Farm, Kyrdemkulai, (ii) Pig Farm, Mawryngkneng (iii) Pig Farm, Pynursla, (iv) Pig Farm, Thadlaskein (v) Pig Farm, Mairang (vi) Pig Farm, Nongstoin (vii) Pig Farm, Gindo(Waram Songma) (viii) Pig Farm, Dalu (ix) Pig Farm, Rongjeng (x) Pig Farm, Baghmara (xi) Pig Farm Laitryngew (xii) Pig Farm Nongkasen and ((xiii) Pig Farm Nongpiur.

Dairy development

The objective of the scheme is to supply wholesome milk to the consumers whereby milk is being procured from producers and distributed to the public after pastuerisation. The procurement and distribution has been given to their respective Agency/Society. The Department has got 3 Dairy Plants at Shillong, Jowai and Tura, and 2 Milk Chilling Plants, one each at Nongstoin and Resubelpara.

 

 

Schedule Tribe of Meghalaya

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Schedule Tribe of Meghalaya

  • Based on 2011 Census total popultaion of India is 121.08 Crore out of which ST population is 10.45 Crore (8.6%) .
  • The tribal communities in India are enormously diverse and heterogeneous. There are wide ranging diversities among them in respect of languages spoken, size of population and mode of livelihood.
  • The number of communities that find their place in the list of the Schedule of the Indian constitution is reflective of this diversity. The Government of India, in its Draft National Tribal Policy, 2006 records 698 Scheduled Tribes in India.
  • As per the Census of India 2011, the number of individual groups notified as Scheduled Tribes is 705.
  • Schedule Tribe of Meghalaya represent the inhabitants of Meghalaya who reside in the foothills as well as within the mountain ranges of Garo, Khasi and Jaintia.
  • The origin of these tribes can be traced from the Tibeto-Burman race and Proto Austroloid Monkhmer race. While the Garos can be traced as the descendents of Tibeto-Burman race, the Khasis and the Jaintias are claimed to have belonged to the Proto Austroloid Monkhmer race.
  • Along with this there are a number of tribes like the Bhois, Khynriams and the Wars who reside in the northern, southern and central parts of Meghalaya.
  • Largely the tribal groups follow Christianity though the state follows all the 3 religions namely Hinduism, Buddhism as well as Christianity.
  • Schedule Tribe of Meghalaya are distinctly marked for their social structure. The traditional dress of Meghalaya is known as ‘Jymphong’ which is often worn during the festivals and ceremonies.
  • The tribal society of Meghalaya primarily depends on subsistence agriculture.

In According to 2011 Census and Ministry of Tribal Affiars Reports the Tribal Polpulation of Meghalaya

Total Population of Meghalaya

 

 29,66,889
Total Population of ST in Meghalaya

 

 25,55,861
Percentage of ST population on Meghalaya

 

 86.1
% STs in the State to total ST population in India

 

 2.4
Sex Ratio in STs (Gender Composition of Scheduled Tribe Population) 1013
Literacy Rates of ST Population in State 74.4%

 

Total Schedule Tribe of Meghalaya that included in Constiturional List of Scheduled tribe by Government of India through President order with Name like

 

  1. Chakma
  2. Dimasa, Kachari
  3. Garo
  4. Hajong
  5. Hmar
  6. Khasi, Jaintia, Synteng, Pnar, War,
  7. Bhoi, Lyngngam
  8. Any Kuki tribes, including:-
    1. Biate, Biete
    2. Changsan
    3. Chongloi
    4. Doungel
    5. Gamalhou
    6. Gangte
    7. Guite
    8. Hanneng
    9. Haokip, Haupit
    10. Haolai
    11. Hengna
    12. Hongsungh
    13. Hrangkhwal, Rangkhol
    14. Jongbe
    15. Khawchung
    16. Khawathlang, Khothalong
    17. Khelma
    18. Kholhou
    19. Kipgen
    20. Kuki
    21. Lengthang
    22. Lhangum
    23. Lhoujem
    24. Lhouvun
    25. Lupheng
    26. Mangjel
    27. Misao
    28. Riang
    29. Sairhem
    30. Selnam
    31. Singson
    32. Sitlhou
    33. Sukte
    34. Thado
    35. Thangngeu
    36. Uibuh
    37. Vaiphei
  9. Lakher
  10. Man (Tai Speaking)
  11. Any Mizo (Lushai) tribes
  12. Mikir
  13. Any Naga tribes
  14. Pawi
  15. Synteng
  16. Boro Kacharis
  17. Koch
  18. Raba, Rava

 

State  List of the Particularly Vulnerable Tribal Groups

PVTGs, currently including 75 tribal groups, have been identified as such on the basis of the following criteria:

  1. forest-dependent livelihoods,
  2. pre-agricultural level of existence,
  3. stagnant or declining population,
  4. low literacy rates
  5. a subsistence-based economy.

As currently there is no tribal group included in this list.

Sixth Scheduled of Consstitution which govern these tribes

The original Sixth Schedule areas created in 1952 underwent a drastic reorganization in 1971; some areas were put under newly created States such as Mizoram and Meghalaya which were carved out of the erstwhile Assam State. The Sixth Schedule (Article 244 (2) and 275 (1)) provides for administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram through Autonomous District and Regional Councils endowed with legislative, judicial, and executive powers.

The Sixth Schedule under Article 244 (2) provides for the creation of Autonomous District Councils (ADC) in an Autonomous District and Regional Councils for autonomous regions. These Councils have legislative powers on matters relating to:

  • allotment, occupation, or the setting apart of land, other than reserved forests, for the purpose of agricultural or grazing or for residential or other non-agricultural purposes or for any other purpose likely to promote the interests of the inhabitants of any village or town (Provided that nothing in such laws shall prevent the compulsory acquisition of any land, whether occupied or unoccupied for public purpose)
  • management of any forest not being a Reserved Forest
  • use of any canal or water course for purpose of agriculture
  • regulation of the practice of jhum or any other form of shifting cultivation
  • establishment of village or town committees or Councils and their powers
  • any other matter relating to village or town administration, including village and town police, public health and sanitation
  • appointment of succession of chiefs or headmen
  • inheritance of property
  • marriage and divorce
  • social custom
  • The entire State of Meghalaya except Shillong area is covered under the provisions of the Sixth Schedule of the Constitution. Meghalaya has three Autonomous District Councils under the Sixth Schedule of the Constitution. These are –
  1. Khasi Hills Autonomous District Council (KHADC),
  2. Garo Hills Autonomous District Council (GHADC),
  3. and the Jaintia Hills Autonomous District Council (JHADC).

 

Major Tribal Group of Meghalaya

Garo Schedule Tribe of Meghalaya:

  • The Garos are mainly distributed over the Kamrup, Goalpara and Karbi Anglong districts of Assam, Garo Hills and few in Khasi Hills in Meghalaya and Dimapur (Nagaland State), substantial numbers, about 200,000 are found in greater Mymens ingh ( Tangail, Jamalpur, Sherpore, Netrakona, Mymensingh) and capital Dhaka, Gazipur, Sirajgonj, Rangpur, Sunamganj, Sylhet, Moulovibazar districts of Bangladesh. It is estimated that total Garo population in India and Bangladesh together is about 1 million.
  • They originally belong to the Bodo family from the Tibetan-Burmese race; also reside in the plains of Assam and Bangladesh.Schedule Tribe of Meghalaya
  • The Garo language belongs to the Bodo–Garo branch of the Tibeto-Burman language family.
  • The Garos are one of the few remaining matrilineal societies in the world. The individuals take their clan titles from their mothers. Traditionally, the youngest daughter (nokmechik) inherits the property from her mother. Sons leave the parents’ house at puberty, and are trained in the village bachelor dormitory (nokpante). After getting married, the man lives in his wife’s house. Garos are only a matrilinear society, but not matriarchal. While the property is owned by women, the men govern the society and domestic affairs and manage the property. This provides security to Garo women.
  • Like other tribes in Meghalaya these tribes too follow maternal lineage in case of inheritance of property and enjoy all kind of vegetarian well as non-vegetarian food in case of regional delicacies.
  • The Garos rely on nature, their profession is hunting and warrior known as They practice jhum cultivation which is the most common agricultural tradition.
  • The most popular food of the Garo tribes is rice with capsicum, onion and salt.
  • Garo literature mainly transferred from generation to generation and one place to another orally. Most of the oral tradition now become the element of Garo literature
  • Greatest among Garo festivals is the Wangala, usually celebrated in October or November, is thanksgiving after harvest in which Saljong, the god who provides mankind with Nature’s bounties and ensures their prosperity, is honor.

Khasi Schedule Tribe of Meghalaya:

  • According to the 2011 Census of India, over 1.72 million Khasi lived in Meghalaya in the districts of East Khasi Hills, West Khasi Hills, South West Khasi Hills, Ri-Bhoi, West Jaintia Hills and East Jaintia Hills. In Assam, their population reached 35,000.
  • They are the largest tribal group of North eastern region. Khasis are known with a number of names in different parts of Meghalaya.
  • The Khasi people of the War sub-tribe designed and built the famous living root bridgesof the Cherrapunji.Schedule Tribe of Meghalaya
  • As a religion they follow Christianity (85%), Ka Niam Khasi (10%), Hinduism (3%), and Islam (2%)
  • The Khasis are, for the most part, Their social organisation does not favour other forms of marriage; therefore, deviation from this norm is quite rare. Young men and women are permitted considerable freedom in the choice of mates. Potential marriage partners are likely to have been acquainted before betrothal.
  • The traditional political structure of the Khasi community was democratic in nature. The Khasis consisted of ‘native states’ which would congregate during dorbars or sessions and come to a decision regarding any dispute or problems that would arise in the community much like the Panchayati Raj prevalent in most Indian States

Jaintia Schedule Tribe of Meghalaya :

  • Jaintias too reside in the foot hills of Jaintia Hills from where they collect their name.
  • These are a type of Khasi tribe which further includes Bhoi in the northern Meghalaya; Khynriam in the central Meghalaya; Pnar of the Jaintia hills; War in the southern Meghalaya.
  • Achiks are another group of Garo tribes who comprise one third of Meghalaya’s tribal community.

Soils of Meghalaya

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Soils of Meghalaya

  • The soils of the hills are derived from gneissic complex parent materials; they are dark brown to dark reddish-brown in colour, varying in depth from 50-200 cm.
  • The texture of soils varies from loamy to fine loamy.
  • The soils of the alluvial plains adjacent to the northwest and southern plateau are very deep, dark brown to reddish-brown in colour and sandy-loam to silty-clay in texture.
  • Soils of Meghalaya are rich in organic carbon, which is a measure of nitrogen supplying potential of the soil, deficient in available phosphorous and medium to low in available potassium.
  • The reaction of the soils varies from acidic (pH 5.0 to 6.0) to strongly acidic (pH 4.5 to 5.0).
  • Most of the Soils of Meghalaya occurring on higher altitudes under high rainfall belt are strongly acidic due to intense leaching.
  • Base saturation of these soils is less than 35 %.
  • These Soils of Meghalaya are not suitable for intensive crop production.
  • There is not much difference in fertility classes of the Soils of Meghalaya .
  • Four Soils of Meghalaya fertility classes, namely, High Low Medium (HLM), High Medium Medium (HMM), Medium Medium Low (MML), Medium Low Medium (MLM) have been established from the soil test data so far compiled in the Soil Testing Laboratory of the State.
  • Regarding micronutrient status, it has been observed that almost all the acid soils of the North-Eastern region of the country are deficient in available Boron (B) and Molybdenum (Mo).
  • Acid soils of Meghalaya are rated low in available B and Mo.
  • Total Zinc, Copper and Manganese contents of these soils vary from 10.00 to 17.25, 17.00 to 71.00 and 110 to 770 ppm (parts per million), respectively and DIPA (Diethylene Triamine Penta Acetic Acid) extractable zinc, copper and manganese contents of these soils ranges from 0.72 to 3.20,n 0.6 to 2.8 and 3.0 to 162.0 ppm respectively.
  • A study conducted by the Indian council of Agricultural Research (ICAR) Complex, Shillong revealed that about 40% of the soils of the state contain micronutrients below the critical level.Soils of Meghalaya

Major Soils of Meghalaya

  • The climate, rock structure, slope and relief within the State differs from place to place and thereby brings heterogeneity in the composition and character of soil in the region.
  • Broadly, the soils of Meghalaya are of three types,
  1. Red loain or Hills soils,
  2. The Lateritic soils,
  3. New and old alluviums.

Red loain or Hill Soils

  • The red loamy soils are found all along the foot hills and sub-mountain fringes of the region.
  • But, these soils are predominant in central upland of Khasi-Jaintia Hills, where the soil is mostly sandy because of the sandstone outcrops, whereas in parts of Ri-Jaintia area the soil tends to be silty.
  • They are also rich in organic matter which again tends to be more in higher altitudes because of low temperature.
  • The soils on the central, upland region have high moisture content.
  • Though the humus content is high, it is devoid of base minerais like calcium, potassium, sodium, etc., except being rich in iron oxides.

Lateritic Soils

  • Towards the western part of the central uplands, hill soils are gradually replaced by lateritic soils.
  • These hill soils being acidic in nature, have their significance in being suitable for the cultivation of fruits and potatoes and in areas of hill slopes and terraces for the cultivation of rice.
  • The southern War Country is practically devoid of any soil cover because of excessive rain.
  • The sandstones being disintegrated constantly by rain make the soil, if there is any, extremely sandy.
  • Towards the lower part, where the slope becomes t gentler, soil tends to be slightly silty to clay.
  • Further down, near the border of Bangladesh, lateritic soils occur in small 60 fringes.
  • These soils are highly leached, poor in plant nutrition and acidic in reaction, and thus they do not hold a favourable base for agricultural purposes.
  • Along the northern face of the central upland (Bhot Country) lateritic soil is found.
  • These soils varying from sandy to silty loam (especially on flat ri’ler valleys) are very much acidic in character and are highly leached.
  • Because of extensive Jhum cultivation practised here, the area does not contain any thick and tall forest.
  • In the western section of the Garo Hills regions for major part of surface area, the soil cover is lateritic, varying in nature from loam to silty loam (on the river banks and floodplains).
  • Further west, nearer to the boarder, lateritic soil occurs on the high ground, but the plains have silty loam to older alluvium.
  • Along the border areas, the soil is predominantly alluvial being both older and younger.
  • The lateritic soils become workable only after rains and by heavy application of organic matter which may increase the fertility of the soil.

Alluvial Soils

  • The alluvial soils, on the other hand, have a wider use by human being, since this type of soil is suitable for cultivation of rice, fruits and vegetables.
  • These soils lack in nitrogen, phosphorus and humus. However, they are generally rich in potash and lime.
  • The soil profile has no stratification.
  • Alluvial soils are intensively cultivated.
  • In certain areas, these soils are covered with unproductive wind-borne soil called Loess.
  • The alluvial soils vary in nature from sandy loam to clay.
  • The colour of the alluvial soils varies from the light grey to ash grey depending on the depth of the deposition, the texture of the materials, and the time taken for attaining maturity.

Soil Conservation Policy of Soils of Meghalaya

  • Meghalaya soil conservation policy is based on the National Land Use Policy in which land has been described as a mix of soil, water, flora and fauna.
  • As per the policy, the main aim of soil conservation in Meghalaya is to develop and maintain the productivity of the land for agricultural purpose as well as for the management of forest.
  • The other aims behind soil conservation at Meghalaya is to :
  • Prevent droughts and floods by sustaining a balanced relationship between land and water cycle.
  • Checking destruction of watersheds from sedimentation, deforestation, land degradation, hydrologic deterioration and soil erosion.
  • Secure the employment in rural areas by creating employment opportunities.
  • Developing and maintaining spoiled land areas, wastelands and fallows so as to meet the growing demands of land for various sectors.
  • Hence to raise awareness for soil conservation around Meghalaya, the state government has set up a Soil and Water Conservation Department that looks after soil conservation in Meghalaya. The department have initiated the following programs in this regard :
  1. Jhum Control Programs: It looks after soil deterioration due to jhum or bun cultivation. The program lays stress on arranging a permanent settlement of jhummia family.
  2. Watershed Management Programs: The program aims at using the land and vegetation resources for the optimum production at some selective micro watersheds.
  3. Soil Conservation Programs: The program aims at removing the risks of soil erosion, land degradation, etc. The farmers have to take up the faulty farming practices.
  • For soil conservation of Meghalaya, measures such as erosion control, afforestation, terracing and reclamation, water conservation and distribution, water harvesting and conservation of farm ponds are taken up.
  • Meghalaya soil conservation would thereby increase the productivity of the land thereby generating more revenue for the state economy.

Population of Meghalaya

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Population of Meghalaya

As per details from Census 2011, Meghalaya has population of 29.67 Lakhs, an increase from figure of 23.19 Lakh in 2001 census. Total population of Meghalaya as per 2011 census is 2,966,889 of which male and female are 1,491,832 and 1,475,057 respectively. In 2001, total population was 2,318,822 in which males were 1,176,087 while females were 1,142,735.

The total population growth in this decade was 27.95 percent while in previous decade it was 29.94 percent. The population of Meghalaya forms 0.25 percent of India in 2011. In 2001, the figure was 0.23 percent.

Meghalaya Religious Data 

Christianity is most popular religion in Meghalaya with 74.59 % of state population following the same. Hinduism is second most popular religion in Meghalaya state with 11.53 % following it. In Meghalaya state, Islam is followed by 4.40 %, Jainism by 0.02 %, Buddhism by 0.33 % and Sikhism by 0.10 %. Around 8.71 % stated ‘Other Religion’; approximately 0.32 % stated ‘No Particular Religion’.

Meghalaya Urban Population

Out of total population of Meghalaya, 20.07% people live in urban regions. The total figure of population living in urban areas is 595,450 of which 297,572 are males and while remaining 297,878 are females. The urban population in the last 10 years has increased by 20.07 percent.

Sex Ratio in urban regions of Meghalaya was 1001 females per 1000 males. For child (0-6) sex ratio the figure for urban region stood at 954 girls per 1000 boys. Total children (0-6 age) living in urban areas of Meghalaya were 77,944. Of total population in urban region, 13.09 % were children (0-6). Average Literacy rate in Meghalaya for Urban regions was 90.79 percent in which males were 92.46% literate while female literacy stood at 89.24%. Total literates in urban region of Meghalaya were 469,851.

 

Population density and growth rate of Meghalaya

The population density is 132 persons for each square kilometer. The aggregate population growth in this decade was 27.95% while in earlier decade it was 29.94%. The number of inhabitants in Meghalaya shapes 0.25% of India in 2011. In 2001, the figure was 0.23%. The population growth of the state has been higher than the national average in the most recent decade.

 

Rivers and drainage system of Meghalaya

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Rivers and drainage system of Meghalaya

One of the world’s wettest regions is found in Meghalaya. Mawsynram and Cherrapunji (Sohra) in the East Khasi Hills district are geographically considered as the rainiest places in the World. — Cherrapunji, which has an average annual precipitation of about 11,430 mm (450 inches) during monsoon season (from May to September) and Mawsynram, a village directly west of Cherrapunji, where rainfall of around 17,800 mm (700 inches) per year has been recorded. The area receives rainfall on an average for 160 days in a year, spread over 6 to 8 months from March to October.

Physiographically, Meghalaya represents a remanant of an ancient plateau of Pre-Cambrian Peninsular shield, block lifted to its present height and is referred as Meghalaya Plateau or as Shillong-Mikir massif. It is the detached northeastern extension of Indian Peninsular shield, part of which lies beneath the alluvium deposited by Ganga Brahmaputra system of rivers. The rivers of the State are rainfed and therefore their discharge dwindles during summer. Important rivers in Garo Hills region are Daring, Sanda, Bugi, Dareng and Simsang. In the central and eastern part of the plateau are Umkhri, Digaru, Umngot and Myntdu rivers.

The surface water resource is tapped in a number of places by constructing dams across the rivers. The reservoirs, like the Umium and Kopili, so developed are not only used for irrigation and drinking water but also for generating electricity. Inspite of this, the area experiences shortage of water during the summer resulting in crisis for drinking water. This is mainly due to topographical and geomorphological conditions apart from alterations of the natural land surface by way of development, mining and urbanization.

Moreover, the characteristic hilly and steep sloping terrain condition in the area with localized small valleys results in very high surface run-off during the monsoon.

Some of the important rivers of Meghalaya are as follows:

Digaru

Digaru is a river originating in the Garo-Khasi hills of Meghalaya state in India, flowing towards the northeast and then meeting the Kolong river and then merging with the Brahmaputra river. The name Digaru originated from a Kachari/Mech word ‘Di’ which means water and ‘Garo’ means the people living in the Garo hills. Hence Digaru literally means “water of the Garo”.

Kopili River

The Kopili originates in the Meghalaya plateau and flows through southern Assam before its confluence with the Brahmaputra. In Assam it drains the districts of Karbi Anglong, Dima Hasao, Kamrup and Rivers and drainage system of MeghalayaNagaon. The river flows for a total length of 290 kilometres (180 mi) and has a catchment area of 16,420 square kilometres (6,340 sq mi). It is noted for several spectacular waterfalls along its course which has several deep gorges and rapids in the 120 kilometres (75 mi) of its flow before debouching into the plains at Nagaon district.

Myntdu River

Myntdu River is one of the major water bodies in Jaintia Hills District, Meghalaya, locally known as ‘ka Tawiar ka Takan’ (Our Guardian Angel) in the Pnar dialect. It is a blessing to the residents of the town of Jowai and adjacent places. Its abundant water is used to irrigate the Myntdu Valley, located on the outskirts of Jowai town.  The river, originating at 1,420 metres (4,660 ft) above sea level, is fit for hydro-power development.

The river flows across Jowai, and then through Leshka (where a Hydro Project Dam is being constructed) to reach a village Borghat, within Jaintia Hills, before finally entering Bangladesh, where it is locally called ‘Shari’.

Piyain River

Piyain River a trans-boundary river of India and Bangladesh. It is a tributary of the Surma river, which is originates from the Umgat river of Assam. The river enters Bangladesh through Sylhet district. The length of the river is 145 km. Piyain river has emerged from the river om or Umagat river or Assam.

Someshwari River

Someshwari River, known as Simsang River in the Indian state of Meghalaya, is a major river in the Garo Hills of Meghalaya and Netrakona District of Bangladesh. It divides the Garo Hills into two parts.

 

Natural hazards and related issues of Meghalaya

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Natural hazards and related issues of Meghalaya

As the State lies in the seismically active zone, special emphasis should be given to reduce the impacts of earthquake. Moreover, it is also affected by hazards such as floods, flash floods, epidemics, fire, hailstorm, lightening, road accidents, etc.

Earthquake

The State of Meghalaya has witnessed seismic events of ‘8.7 magnitude in 1897’. This region has been identified as a potential site of a future catastrophic earthquake. With the growth of population and infrastructure seismic vulnerability has increased and previous earthquakes have provided a glimpse of the devastating potential of seismic tremors.

Cyclones

Meghalaya is situated in the north eastern direction of Bangladesh which is highly prone to cyclone/ winds. Every year about 60% of the area is affected by cyclone in Bangladesh. The Districts of West Jaintia Hills and East Jaintia Hills may experience a wind speed of up to 55m/s. Occasional cyclones do occur in western Meghalaya their severity being more during monsoon season. The Districts close to Bangladesh like South West Garo Hills, South Garo Hills, South West Khasi Hills, West Khasi Hills, fall in very high cyclonic zone due to close proximity to Bay of Bengal (which is a cyclone basin). In this zone wind speed can reach up-to 50 m/s, which can cause large scale damages. The Bay of Bengal accounts for seven percent of the annual tropical cyclone activity worldwide; the recorded frequency of cyclones per year along the Bay of Bengal is four and inevitably one of the four transforms into a severe cyclone causing human and property losses

Floods

The State with hilly terrain does not suffer from a major problem from floods, However, due to heavy rain, flash floods may be caused resulting in river bank erosion and some local damage. In Meghalaya, Natural hazards and related issues of Meghalayafloods occur in river valleys, when flow exceeds the capacity of the river channel, particularly at bends or meanders. The plain areas of Meghalaya adjoining Assam are affected by flood due to the back flow of water from the River Brahmaputra during the flood season between June and October. The tributaries like Krishnai, Jinari, Jingjiram, Rongai, Dudhnoi, Ringgi, Gohai, Dilni etc cause flood in the plain areas of the State.

Landsides

Meghalaya being a hilly terrain is prone to landslides. Every year a number of landslides have been reported from various localities. These cause a lot of miseries to public, resulting in loss of lives and properties, disruption of communication network, besides causing economic burden on the society. Landslide is primarily attributed to high slope, immature geology, neo-tectonic activity, heavy rainfall, unplanned and improper land use practice in the State. Landslides generally occur during heavy rains, that is during the months of June to October in Meghalaya.

Southern part of Meghalaya is more susceptible to Landslides than the Northern Part. National Highways like Bajengdoba-Tura-Dalu, Damra–Siju-Baghmara, Guwahati – Shillong- Tamabil, and Shillong- Jowai- Badarpur are prone to landslides.

Landslide occurred frequently at Sonapur on Shillong- Jowai- Badarpur Road, but now the problem has been mitigated by constructing a tunnel for the vehicular traffic. Urban areas of Shillong and Tura, Jowai are also prone to landslides due to the faulty Construction of Houses and rapid Urbanization.

Lightning and Hailstorms

Lightning occurs during the monsoon months and can strike at any place. Hailstorm generally occurs in the pre and post monsoon months. Some loss of crops lives and properties due to lightning and hailstorms are reported in the state.

Hazard Specific Mitigation Plan

The State Disaster Management Authority was established in the State under the Chairmanship of the Chief Minister with 8 other members under section 14 of the Disaster Management Act, 2005 by a Government notification dated 26th June, 2008. It is the apex body for disaster management in the State.

The State Executive Committee headed by the Chief Secretary with 4 other Secretaries as members was also set up to assist the State Disaster Management Authority in the performance of its functions.

The District Disaster Management Authorities under the Chairmanship of the Deputy Commissioners and Chief Executive Members of the District Councils as Co-Chairmen with 5 District Officials as members were also set up for the better management of disasters in the Districts.

Similarly at the Block and Village levels Block Disaster Management Committee and the Village Disaster Management Committee were set up headed by the respective Block Development Officers and the Village Headmen. The State Disaster Management Authority, has set uMock drill by NGO’sMock drill by NGO’sp a State Disaster Management Secretariat in 2010 which is located in the Office of the Director of Land Records and Surveys, Lower Lachumere, Shillong. The day to day functioning of the SDMA is looked after by the Executive Officer of the Secretariat.

Functions of SDMA

Framing of Disaster Management Policy and the preparation of the State Disaster Management Plan, reviewing the preparedness, prevention, mitigation and capacity building measures in the State.

Activities of SDMA

The preparedness, prevention, mitigation and capacity building programmes.

The Disaster Risk Reduction Project funded by the UNDP which focuses on the awareness programmes, capacity building, strengthening of the disaster management institutions are being implemented in the three districts of East Khasi Hills. West Garo Hills and the Jaintia Hills, While the Urban Risk Reduction Programme is being implemented in the capital city Shillong through the SDMA Secretariat the Capacity Building Programme is under the 13th Finance Commission.  Besides, Hazard Risk Vulnerability Assessment (HRVA) will also be carried out for the Shillong city and the West Garo Hills through North Eastern Space Application Centre, Umiam.

State Disaster Response Fund is available for management of disasters in the State. An advance amount from the fund is made available to the Deputy Commissioners to meet any emergency arising out of disasters.

 

 

 

Wild life and ecotourism of Meghalaya

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Wild life and ecotourism of Meghalaya

Meghalaya is considered by many biologists to have been the gateway through which many species of Indo-Chinese origin, particularly mammals migrated to Peninsular India. It is said that about 50% of the total number of mammal genera found in the entire Indian sub-continent can be seen in Meghalaya and its adjoining states in the Northeast. Out of the above, nine genera of mammals, such as Tupaia, Rhizomys, Cannomys, Chiropodomys, Micromys, etc occur only in Meghalaya and its adjacent areas.

In the forests of Meghalaya, specially in lower altitudes, multifarious species of birds can be seen in abundance. Some of the common birds found in Meghalaya include Hoopoe, long tailed Broadbill, Scarlet Minivet, Burmese Roller, Blue Throated Barbet, red veted Bulbul, Himalayan black Bulbul, Himalayan whistling Thrush, Spotted Forktail, black-breasted Kalij Pheasant, red jungle Fowl, Mynas and Turtle Dove. Besides, Hornbills including the Great Indian Hornbill, Florican, Owl, Black Drongo and many other birds are also found.

Reptile population in Meghalaya includes lizards and snakes, poisonous and non-poisonous. Important ones include Indian Cobra, King Cobra, Coral Snake, Vipers, Python, blind Snake, Copperback, red-necked Kulback, and Green tree Racer.

Some species of different families of mammals namely Primates, the Cats, Civets, Mongooses, Dogs, Bear, Weasels, Bats, Rodents, Elephants, Gaur, Wild Buffalo, Serow, Deer, Pigs and Pangolins are seen roaming in the forests of Meghalaya. In Meghalaya we come across apes as well as Monkeys and Lemurs.

Meghalaya wildlife is full of treasure trove of Nature, with its rich variation of dense endemic and cultivated flora. Nature, in its plenteous abundance, had blessed Meghalaya with a unique array of plantation, ranging from tropical and sub-tropical to temperate or near temperate. This is due to the diverse physiology, varied and plentiful of rainfall and distinctive climatic and edaphic conditions of the state, within small regions. Biotic factors have also played an important role, at places decisive.

Ecotourism

The State of Meghalaya is  a jewel in the crown of the Seven Sister States of North East India. With beautiful landscapes, hundreds of waterfalls and welcoming people, the capital of this State Shillong, has no wonder derived the name as being the ‘Scotland of the East’. Shillong is a city where you get to see a blend of the Modern and the Cultural World and music being the soul of the Khasi Tribal people of Shillong the city has also added to its kitty the title of being called ‘India’s Rock Capital’.

Some of the important national parks and sanctuaries in meghalaya are as follows:

Nokrek National Park

The Nokrek National Park and Biosphere Reserve is about 45 kms from Tura. Nokrek is the highest peak in Garo Hills and home to different species of wild animals including Elephants and Hoolock Gibbons. The Nokrek National Park has been established at Nokrek and it abounds in various wildlife including herds of wild elephants, rare varieties of birds and pheasants, beside rare orchids. The park is also home to a very rare species of citrus-indica endemic to this place which the locals call memang narang (‘orange of the spirits’). Nokrek is also believed to be the home of Mande Burung (jungle man or ape man) and reported cases of sightings abound in and around the villages of Nokrek.

Selbagre Hoolock Gibbon Reserve

This small area protected by the community is home to the Hoolock Gibbons, the only ape species found in India. The sacred grove in the reserve is the pride of the village and the community. The Garos never kill or hunt the Hoolock Gibbon as it is a traditional belief among them that if a Hoolock Gibbon is killed, a famine or a curse would befall the entire village.

Balpakram National Park

Balpakram is a fertile virgin land. The UN surveyed belts of limestone and coal deposits, along with sea shells fossilized into rocks in Balpakram hill provide immense scope for geological and archeological studies. The animals which can be seen in this national park are elephants, wild buffaloes, gaur, sambar, barking deer, wild boar, slow loris, capped langur, tigers, leopards, clouded leopards and the rare golden cat.

Siju Bird Sanctuary 

Siju Bird Sanctuary is located in the hilly regions, it is a perfect destination for people who like watching birds of different species. The sanctuary has been made so that the birds do not feel caged and are not disturbed by any human. The entry of the Siju Bird Sanctuary is beautifully decorated by rock formations. The Siberian ducks also migrate here during the winter months. The lesser or Grey Hornbill is also seen around Siju. One interesting and rare bird is the Peacock Pheasant seen in Siju.

Nongkhyllem Sanctuary

Nongkhyllem Sanctuary of Meghalaya is spread over an area of 29 sq. km. and thereby houses a large number of animals including reptiles, mammals, avian, rodents, etc. The sanctuary still retains the natural look of the forest. Nongkhyllem Sanctuary of Meghalaya is situated in the Ri-Bhoi district near Lailad village. The sanctuary is accessible through road. You can take up the Guwahati Shillong National Highway number 40 and get down at Umling and then along Umling Patharkhmah road take another bus or cab to Lailad village. This sanctuary is one of its kinds as it hosts a wide range of flora and fauna. The sanctuary supports various species of fauna including those facing the danger of extinction. They include Royal Bengal Tiger, Indian Bison, Himalayan Black Bear, Clouded Leopard, etc.

 

 

Meghalaya Public Finance And Fiscal Policy

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Meghalaya Public Finance And Fiscal Policy

The state of Meghalaya, along with all the other states in the NER, has been given special category status by the central government. Special category status is accorded to a state with certain characteristics that necessitate stronger than normal hand-holding by the central government. The predominant characteristics relate to geographic terrain, specifically hilly or mountainous tracts.

GSDP OF MEGHALAYA:

The Gross State Domestic Product (GSDP) is likely to underestimate income in Meghalaya, which is characterised by subsistence agriculture and a significant dependence of people on community forests for meeting various needs.The real GSDP of Meghalaya grew at a trend rate of 5.93 per cent per annum between 1999–2000 and 2007–08 (at 1999–2000 prices). The population of Meghalaya during the same period grew at a trend rate of 1.39 per cent per annum. Real per capita GSDP of Meghalaya thus grew at 4.48 per cent per annum during that period.Meghalaya Public Finance And Fiscal Policy

Low population density accords certain natural advantages from (potentially) larger availability of terrestrial resources, but several disadvantages from the point of view of ensuring reach of public services to a sparse population. For example, Meghalaya reports a lower literacy rate and a higher poverty ratio than that of the NER as a whole. Trend growth rate of aggregate GSDP for Meghalaya and NEREAM(the north-east region excluding Assam and Meghalaya)  stood, respectively, at 5.99 and 7.35 per cent per annumbetween the years 1999– 2000 and 2005–06.Meghalaya thus has a significant head start (as compared to NEREAM) in its effort to catch up with the average all India per capita GDP.

Growth component over period 2000- 2006:-

  • There has been some decline in the share of agriculture and allied sectors, as also in the service sectors.
  • In 1999–2000, the mining and quarrying sector contributed almost two-fifths of industry GSDP in Meghalaya, but the share has gradually declined to about onethird in 2005–06.

 

INVESTMENT FOR ACCELERATING GROWTH:-

Improving the standard of living of the people would require sustained increases in per capita income levels. Given the current levels of income, this will require a significant acceleration in growth rate. If by 2030 the people of Meghalaya are to achieve living standards comparable to the rest of India, their per capita GSDP would need to grow at an average rate of 11.5 per cent.

The North Eastern Region: Vision 2020, an illustrative scheme for accelerating the growth process of Meghalaya shows:-

Average Annual Growth Rate (%) till 2029-30:–

Required GSDP CAGR (%)–9.92

Projected Population CAGR (%)–1.04

Implied Per Capita GSDP Growth (%)–8.88

Projection of Investment Requirements to Achieve Economic Target by 2030:-

Required CAGR (%) of GSDP:-

2012-13 to 2016-17 = 9.45

2017-18 to 2021-22  =10.25

2022-23 to 2026-27 = 10.25

2026-27 to 2029-30  =10.25

Required Investment to Achieve Growth Target In Crores, 2009-10 Prices:-

2012-13 to 2016-17  =28937

2017-18 to 2021-22  =50097

2022-23 to 2026-27  =81603

2026-27 to 2029-30  =71882

Required Investment as Percentage of GSDP:-

2012-13 to 2016-17  = 34.8

2017-18 to 2021-22  =37.2

2022-23 to 2026-27  = 37.2

2026-27 to 2029-30  =37.2

Meghalaya requires a massive investment as well as significant increase in productivity if it desires to achieve a standard of living somewhere near that of the rest of India by 2030. Investment requirements may be met from savings and borrowings, both government and private.

In the case of the government, capital expenditure is of the nature of investments and may be financed from current revenues (tax and non-tax), but only if there is revenue surplus (zero revenue deficits). In the eight year period, from 2000–01 to 2007–08, Meghalaya was revenue surplus in six years (all but 2001–02 and 2004–05). However, the revenue surplus is barely 2 per cent of GSDP and can at best cover only a small fraction of the additional investment requirements. Even with optimistic assumptions on the ICOR(increment capital output ratio), the (desirable) investment rate averages about 37 per cent of GSDP. Thus other feasible avenues of resources have to be rigorously explored.

A possible source of investment lies in additional government borrowing, which adds to government public debt either through public accounts or other internal and external borrowings. This in turn results in an increase in the fiscal deficit in government accounts. Between 2000–01 and 2007–08, the fiscal deficit for Meghalaya has varied between 1.1 per cent and 6.3 per cent of GSDP (with an average of 3.8 per cent) In years of revenue surplus, the full measure of fiscal deficits may, arguably, be assumed to finance capital expenditures or new investments. Thus, revenue surplus and budgetary borrowing together allow for (on an average) about 5 per cent of GSDP as new investment or capital expenditure. In fact, capital expenditure as derived from budgets averaged less than 4.5 per cent of GSDP between 2000–01 and 2007–08.

It appears that less than 15 per cent of investment needs are being met from public sources. The remainder of investment has to come from the private sector. In many cases, this can be facilitated through public-private partnerships.

GROWTH OF REVENUE AND EXPENDITURE:-

Between 2000–01 and 2007–08, total revenues for Meghalaya show the lowest rate of 12.13% growth as compared to15.71%  the NER or NEREAM . Growth rates of total revenues reflect a similar picture even for a longer period between 1987–88 and 2007–08(11.47% for Meghalaya and 12.24% for NER) . Further, for the period between 2000–01 and 2007–08, the rate of growth of each category of revenue (tax, non-tax, grants-in-aid, and contributions) in Meghalaya trails the rate of growth of the respective components for NEREAM.

The tax-GSDP ratio of Meghalaya increased from 7.14 per cent in 2000–01 to 11.61 per cent in 2007–08. Similarly, the tax-GSDP ratio for NEREAM has also increased from 6.54 per cent in 2000–01 to 11.24 per cent in 2007–08. Thus, despite the higher growth rate of GSDP and buoyancy in taxes, the tax-GSDP ratio for NEREAM is lower than for Meghalaya. But it is also apparent that in the last decade or so, NEREAM has been gradually catching up with Meghalaya, which is possibly losing its pre-eminent position in the NER. Alternatively, one may interpret this as an improvement in balanced development of the NER.Thus, capital expenditure in Meghalaya is critically straining existing infrastructure, with consequent social and economic costs in terms of growth and employment. This feeds back into revenue mobilisation performance as observed with a deceleration in tax revenues for Meghalaya. An urgent redressal of this situation appears to be desirable.

STRUCTURE OF REVENUE AND EXPENDITURE:-

  • The differences in growth rates of the components of revenue and expenditure have resulted in significantly altering their structure in the last decade. Thus, the share of grantsin-aid and contributions, which constituted more than two-thirds of revenues for Meghalaya in 2000–01, has declined to about 56 per cent in 2007–08.
  • For Meghalaya the share of tax revenues (in total revenues) increased from about one-quarter in 2000–01 to more than one-third in 2007–08. The share of non-tax revenues has shown some increase over the period, but remains less than 10 per cent.
  • In Meghalaya, the share of revenue expenditure in total expenditure increased by about 3 percentage points, with an equivalent reduction in the share of capital expenditure.
  • Segregating tax revenues into own-tax revenues and share in central taxes shows that between 2000–01 and 2007– 08, for Meghalaya, there is some decline in the proportion of own-taxes.
  • In contrast to the revenue expenditure scenario, non-developmental capital expenditure entails only a small proportion that was less than 5 per cent of total capital expenditure in 2000–01. This proportion appears to be rising but remained less than 10 per cent in 2007–08. The remainder (above 90 per cent) is being incurred as developmental capital expenditure.
  • Almost 60 per cent of developmental revenue expenditure in Meghalaya was incurred on social services in 2000–01. But this proportion has been declining and is close to one-half in 2007–08.
  • Developmental revenue expenditure on economic services has increased in Meghalaya.

Differences in the growth rates of components of revenue and expenditure have affected their structures. In turn, this has affected the structure of deficits. From the beginning of the last decade, revenue deficits showed a decline, and for the NER states as a whole, revenue deficits were quickly transformed into surplus that has been rising. This reversal of deficits to surplus also has to do with the promulgation of fiscal responsibility and budget management (FRBM) acts, duly incentivised by the recommendations of the Twelfth Finance Commission. Unfortunately, the effort appears more to satisfy accounting prudence than to influence expenditure efficiency and effectiveness that improves outcomes. Among several causes impacting GSDP of a state and its consequent resource mobilisation capacity, issues in extant governance in the state play a critical role. The present polity of the state of Meghalaya does not present itself as a coherent, synchronised, and harmonious institution. In particular, this impacts not only the direction of public expenditure, but more so its effectiveness. Analogously, it presents difficulties in exercising tax or revenue efforts, with consequent influence on scope, level, and coverage of public services.

OUTLOOK OF MEGHALAYA ECONOMY IN RECENT PAST AND FUTURTE ASPECT OF GOVERNMENT INVESTMENT:-

The GSDP at current market prices for the year 2013-14, 2014-15, 2015-16 and 2016-17 was estimated at  22,938.24 crore, 24,408.07 crore,  26,745.23 crore and  29,566.90 crore respectively, registering an annual percentage growth of 6.41 percent, 9.58 percent and 10.55 percent respectively. At constant (2011-12) prices, the GSDP of the state during the same period was estimated at 20,725.71 crore, 21,151.83 crore,  22,507.01crore and ` 24,004.75 crore with corresponding annual growth of 2.06 percent, 6.41 percent and 6.65 percent.

The share of Primary Sector (Agriculture, Livestock, Forestry, Fishery and Mining & Quarrying) at current market prices accounted for 23.25 percent, 18.48 percent, 18.24 percent and 17.74 percent during the year 2013-14, 2014-15, 2015-16 and 2016-17. During the same period, its share of GSDP at constant (2011-12) prices were 23.77 percent, 19.28 percent, 19.02 percent, 18.61 percent.

The Secondary Sector contributed 24.38 percent in 2013-14, 26.14 percent in 2014-15, 26.36 percent in 2015-16 and 26.08 percent in 2016-17 to the GSDP at current market prices. At constant (2011-12) prices, its contribution were 25.79 percent, 26.99 percent, 26.74 percent and 26.31 percent during the same period.

The Service/Tertiary Sector being the major contributor towards the economy of the state contributed 47.60 percent in 2013-14, 49.19 percent in 2014-15, 48.93 percent in 2015-16 and 49.54 percent in 2016-17 to the GSDP at current market prices. At constant (2011-12) market prices, its contribution during the same period were 45.91 percent, 47.83 percent, 48.29 percent and 49.11 percent respectively.

The Per Capita GSDP at current market prices stood at  73,168/-,  75,228/-,  81,765/- and  88,497/- during 2013-14, 2014-15, 2015- 16 and 2016-17 showing an annual increase of 4.18 percent, 7.26 percent and 8.23 percent. The estimates of per capita GSDP at constant (2011-12) prices were  66,111/-,  66,058/-,  68,808/- and  71,849/- with the corresponding annual growth of -0.08 percent, 4.16 percent and 4.42 percent.

Overview of the State Government Finances:

During 2015-16, the Revenue Surplus increased to  695.40 crore as compared to  176.42 crore during 2014-15 on account of increase in Revenue Receipts brought about mainly by higher revenue realization from the State’s Own Tax Revenue and increase in the State’s Share of Central Taxes against a marginal increase of 1.53 percent in Revenue Expenditure.

The Revenue Surplus is estimated to reduce to  386.90crore during 2016-17 (RE) on account of higher estimated revenue expenditure. The lower Revenue Surplus during 2014-15 has also affected the Fiscal Deficit during the year, increasing the fiscal deficit to  978.44crore as compared to  382.18 crore during 2013-14. The Fiscal Deficit reduce to  554.76crore during 2015-16 (Actual) due to estimated higher devolution of Central Taxes. The Fiscal Deficit during 2016-17 is estimated to increase to  1089.75crore on account of higher revenue expenditure.

The Primary Deficit of  572.84crore during 2014-15 reduced to  88.88 crore during 2015-16 (Actual). The same is, however, estimated to increase to  538.46crore during 2016-17.

  • The Revenue Surplus during 2015-16 is higher than that of 2014-15 on account of higher than proportionate increase in revenue receipt as compared to expenditure. The revenue surplus is estimated to reduce during 2016-17 as the revenue receipts is estimated to increase by 28 percent over 2015-16, whereas the revenue expenditure is estimated to increase by 35 percent.
  • With regard to deficit indicators, the fiscal policy of Government continues to be guided by the principle of gradual adjustment. The performance in respect of revenue surplus during the ensuing year and the rolling targets are in line with the revised roadmap of fiscal consolidation, as amended in 2015 and significant improvement is expected over the medium-term. The fiscal deficit will breach the statutory limit of 3 per cent of GSDP during the ensuing fiscal 2017-18 and rolling targets for the next two years. However, efforts to contain the fiscal deficit to within feasible limits will be initiated through revenue and expenditure management measures.
  • As per the Statement, the fiscal deficit of the State during 2014-15 was 4.01 percent of GSDP due to the fall in the State’s Own Revenue. However, the fiscal deficit greatly improved during 2015-16 to 2.07 percent of GSDP with the increase in State’s Share of Central Taxes in view of the recommendation of the Fourteenth Finance Commission. However, the Fiscal Deficit is estimated at 3.69 percent during 2016-17 as a result of lower estimated receipt from Share of Central Taxes and Grants as well as State’s Own Tax Revenue. The fiscal deficit is estimated at 3.80 percent of GSDP during 2017-18 on account of anticipated higher revenue expenditure.
  • The total liabilities as a percentage of GSDP from 2014-15 to 2017-18 (BE) are above the limit of 25 percent recommended by the Fourteenth Finance Commission. However, the ratio is sought to be reduced during the two year projections.

Fiscal Outlook for 2018-19 and 2019-20:-

The parameters of the Government’s medium term fiscal projections are the FRBM limits and the budget estimates. These are, however, subject to fluctuations depending on the state of the economy and central transfers, which directly affect the fiscal performance of the State. As explained earlier the fiscal deficit target of 3 per cent of GDP was mandated to be maintained throughout the award period of the Fourteenth Finance Commission (2015 – 2020), as per amended FRBM Act. The FD for 2018-19 and 2019-20 has therefore been assumed at 3.45 and 3.06 per cent of GSDP respectively.

  1. Receipts:

(a) Revenue Receipts:

The State’s Own Tax and Non Tax Revenue has increased from  1,282.51crore in 2014-15 to 1,285.41 crore in 2015-16 and is estimated to further increase to  1,734.71 crore in 2016-17 and  2,071.75 crore in BE 2017-18.

The State’s Share of Central Taxes has increased from  1,381.69crore in 2014-15 to  3,276.46 crore in 2015-16. The same is estimated to increase further to  3,668.82 crore during 2016-17 and  4,339.22 crore during 2017-18 as the Fourteenth Finance Commission has recommended an increased share of tax devolution to from 32 per cent to 42 per cent of the divisible pool, and a higher ratio recommended for the State out of the sharable taxes.

Other Central transfers such as grants for Central Sector and Centrally Sponsored Schemes, NEC, NLCPR and EAPs, etc. reduced from  3,764.08 crore in 2014-15 to  2,481.25 crore in 2015-16. This is, however, estimated to increase to  3,577.32crore in 2016-17 and  4,868.83 crore BE 2017-18. Consequent to the recommendations of the Fourteenth Finance Commission, the Centre has stop releasing grants to the State for financing its plan schemes and the State is required to meet such requirements out of the fiscal space provided by the higher tax devolution from the fiscal 2015-16.

  1. 2. Expenditure:

The total expenditure of  7,426.46crore in 2014-15 increased to  7,616.96 crore in 2015-16. The estimated expenditure of  10,103.19 crore in 2016-17 has been increased during the course of the year through additional allocations made by way of supplementary demands for grants, thereby enhancing its expenditure allocations over the budget estimates. Efforts are being made to maintain the fiscal deficit targets for the year through continuation of the extant economy measures, budgetary cut and restrictions on Non Plan expenditure. The total expenditure for 2017-18 is estimated at  12,537.81crore.

(a). Revenue Expenditure: the expenditure has increased marginally by 1.53 percent from 6,251.86 crore in 2014-15 to 16,347.72 crore in 2015-16. The revenue expenditure is estimated to increase to  8,593.95crore in 2016-17 and further to 110,647.63 crore in BE 2017-18. The major components of the revenue expenditure of the Government include Interest Payments, Maintenance expenditure, Subsidies, Salaries and Pensions.

Consequent to the merger of Plan and Non-Plan classification of expenditure by the Government of India from the fiscal 2017- 18, the State Government has also made a similar shift from the Budget of 2017-18.

Fiscal Policy for the ensuing financial year:

The fiscal policy for 2017-18 will continue to be guided by the objectives of the FRBM Act, that is to generate revenue surplus and reduce fiscal deficit and build up adequate surplus for discharging the liabilities and for developmental expenditures; (b) pursue policies to raise non tax revenue with due emphasis on cost recovery and equity; (c) prioritize capital expenditure and to pursue an expenditure policy that would provide impetus for economic growth with social equity and improvement in poverty reduction and human welfare.

  • Tax Policy:The collection out of the State’s Own tax and Non Tax Revenue during the 3rd quarter of 2016-17 was about 93 percent of the Budget Estimates for the quarter. Continuing with its efforts of revenue augmentation, the State will endeavour to improve its revenue collection in 2017-18 through periodic review, identification and introduction of new revenue collection measures.
  • Expenditure Policy: Expenditure will be focused on economic growth with social equity and improvement in poverty reduction and human welfare, the Government will continue with its policy of providing adequate resources for sectors such as education, health & family welfare, agriculture & allied activities, rural development and transport infrastructure apart from making adequate provision for meeting committed liabilities such as salaries, pension, interest payment and repayment of loans and advances.

The Fifth Meghalaya Pay Commission constituted by the Government to examine the existing structure of emoluments, etc is expected to submit its report by mid-term 2017-18, it is anticipated that the recommendation of the Pay Commission will cause additional financial implication for the State Government.

  • Borrowings:In 2015-16 the market borrowings of the State was This is estimated to increase to 948.30crore in 2016-17 and  1,025.00 crore during 2017-18. Other sources of borrowings constitute loans from financial institutions, Central Government loans for EAPs and Public Account.
  • Consolidated Sinking Fund: During 1999-2000 the Government constituted a “Consolidated Sinking Fund” for redemption and amortization of open market loan. In 2015-16 the Government has appropriated an amount of 38crore from revenue and credited to the Fund for investment in the Government of India Securities. The outstanding as at the end of 2016-17 is estimated at about 383.56crore.
  • Contingent and other Liabilities: Though at present there is no statutory limit as to the outstanding amount of contingent liabilities, the State is committed to restricting the issue of guarantees, except on selective basis where the viability of the scheme to be guaranteed is assured and the scheme is beneficial to the State. To service contingent liabilities arising out of the invocation of State Government Guarantees, the Government has constituted the Meghalaya Guarantee Redemption Fund managed by the Reserve Bank of India. During 2015-16 an amount of 74crore was transferred to the fund account.

The State has, amongst other things, great economic prospect in tourism and agriculture and allied sectors. However, the comparative advantage in these sectors can be leveraged, provided necessary logistics in terms of economic infrastructure like road connectivity, scheme-convergence, capacity building, financial assistance to prospective entrepreneurs etc,  which require substantial investment, both for creating assets and maintenance of existing ones, are in place. This requires the State Government to earmark adequate financial resources over and above normal government expenditures for State intervention in these crucial sectors through State development schemes.

Thus state of Meghalaya is on its right path to fiscal prudence and FRBM limit without compromising growth potential and business environment. State is also a role model for other states in terms of environment protection.

Irrigation and hydro power of Meghalaya

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Irrigation and hydro power of Meghalaya

Bamboo irrigation in Meghalaya

In Meghalaya (one of the seven northeastern states in India), an ingenious system of tapping of stream and springwater by using bamboo pipes to irrigate plantations is widely prevalent. It is so perfected that about 18-20 litres of water entering the bamboo pipe system per minute gets transported over several hundred metres and finally gets reduced to 20-80 drops per minute at the site of the plant. The tribal farmers of Khasi and Jaintia hills use the 200-year-old system.Irrigation and hydro power of Meghalaya

Dating back 200 years, tribes in Meghalaya have used bamboo drip irrigation as a means of bringing water to seasonal crops. This traditional technology uses locally available material while harnessing the forces of gravity. Holed bamboo shoots are placed downhill, diverting the natural flow of streams and springs across terraced cropland. The advantages of using bamboo are such that it prevents leakage, increases crop yield with less water, and makes use of natural, local, and inexpensive material.

The Jaintia, Khasi, and Garo hills of Meghalaya are largely made up of steep slopes and generally rocky terrain where the soil has low water retention capacity and where the use of groundwater channels is impossible. During the dry seasons, rain fed crops such as paddy, betel leaf, and black peppers can be irrigated by bamboo drip irrigation.

The bamboo drip irrigation system is normally used to irrigate the betel leaf or black pepper crops planted in arecanut orchards or in mixed orchards. Bamboo pipes are used to divert perennial springs on the hilltops to the lower reaches by gravity. The channel sections, made of bamboo, divert and convey water to the plot site where it is distributed without leakage into branches, again made and laid out with different forms of bamboo pipes. Manipulating the intake pipe positions also controls the flow of water into the lateral pipes. Reduced channel sections and diversion units are used at the last stage of water application. The last channel section enables the water to be dropped near the roots of the plan.

 

Bench terrace Irrigation practice

This is the common irrigation practice in Meghalaya as well as throughout the North East Himalayan region. The hill streams are tapped as soon as they emerge from the forests and the water is channeled to accommodate a series of terraces. In this system, water flows continuously from the upper to lower terraces. This method of irrigation practice is widely used for non-fertile land to be utilized for raising rice crops. Stone and gunny bags help in the maintenance of terraces and stop soil erosion problems. Submergence of water up to 5 – 8 cm is maintained continuously throughout the year. After harvesting, ear head of rice is plucked and the straw is left as such in the field, which then gets rotted and helps improving soil fertility. Mostly all farm operation is done manually; bullock power is used for field preparations only in some pockets of Meghalaya.  Bench terracing is an important conservation measure for valleys and hill slopes. This is used predominantly for rice cultivation. In bench terrace agriculture practice under rainfed condition, topo-sequence crops such as maize, bean and potato are planted on upper slopes and crop requiring more water such as rice and jute are grown on lower slopes. The excess runoff from upper portion of slope is nutrient rich, utilized for the lower hill crops.

Hydro power in Meghalaya

Meghalaya is rich in potential water power resources, hydro power has played an important role in the state’s energy policy.

Small Hydro Power

In a move that aims to address the power requirements of the Megahlaya, as many as 50 mini and micro hydel power projects have been identified to be set up in different districts of the state.

The projects which have already been commissioned include Sonapani on Wahumkhra-Umshyrpi river, Pashyiang Micro HEP on Barim river and Umsaw Micro HEP on Umsaw river. The Lakhroh Micro HEP on Lakhroh river in Jaintia Hills district is under construction.

The Ministry of New and Renewable Energy (MNRE) has also identified 37 mini and micro hydel projects in the state with a cumulative power generation capacity of around 8.5 MW. Out of the total 37 projects, elecven project sites are located in West Garo Hills, South Garo Hills and East Garo Hills districts; nine of them in West Khasi Hills district; eight in East Khasi Hills district; six in the Jaintia Hills district and three in Ri Bhoi district.

Some of the hydro power projects in Meghalaya are as follows:

Myntdu-Leshka Hydro Project

The Myntdu-Leshka Hydro Project Dam (3X42 MW)[2] built across the river, undertaken by MeECL, scheduled in three phases, is located at Leshka, West Jaintia Hills district, Meghalaya near Amlarem, the sub-division headquarters. The project cost is estimated to be around INR 360 crores.

Umiam Hydro Power Complex

All the power stations are in the Umtru River which flows to the north into the mighty Brahmaputra. Running adjacent to this river are two other rivers viz. the Umiam and the Khri. Water from the Umiam basin is diverted into the adjacent Umtru basin thus enhancing the water flow of the Umtru River where all four power stations are constructed. In a similar manner, the water from the Khri River is also intended to be diverted to the existing reservoirs at the Umtru River to further enhance the power generation at the existing system.

 

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