In March 2025, Deputy Chief Minister(Dy CM) and Minister -In-Charge of Finance, Planning and Investment of Arunachal Pradesh (AR) Chowna Mein presented the state budget for the financial year 2025-26 (FY 26) in the assembly, with a total expenditure of Rs 39,842.23 crore. This budget represents an 11.16% increase from the previous year estimate of Rs 35,840.79 crore. FY26 has been declared as the ‘Year of Human Capital.’
- The budget focuses on four key pillars: People (health, education, skills, women & youth welfare), Infrastructure (connectivity, urban development, power, transport), Economy (agriculture, tourism, industries, startups), and Innovation (governance, citizen services, quality of life).
Financial Indicators:
i.Revenue receipts are estimated at Rs 34,544.07 crore with the state’s share of central taxes rising 16.61% to Rs.24,992.35 crore, while capital receipts stand at Rs 5,298.16 crore.
- The state government projects its own tax and non-tax revenue at Rs.4,607.72 crore.
ii.Revenue expenditure has increased to Rs 29,963.33 crore from Rs 25,931.87 crore in FY25. Capital expenditure (CapEx) has also risen to Rs 9,878.90 crore from Rs 9,533.34 crore in the previous year.
iii.The Fiscal Deficit(FD) is projected at Rs 966.65 crore, accounting for 2.02% of the Gross State Domestic Product (GSDP), aligns with the fiscal responsibility targets outlined in the AR Fiscal Responsibility and Budget Management (FRBM)Act, 2006.
Key Allocations:
i.To strengthen the education sector, the state government will invest Rs 3,000 crore this year by integrating funds from both central and state schemes. Rs.1,112 crore has been allocated for agriculture and allied sector.
ii.Rs 435 crore has been set aside for Mission Antyodaya, aimed at uplifting the most vulnerable sections of society. A comprehensive training program is also planned to enhance skill development and capacity building.
iii.For industries and mining, Rs 46 crore has been earmarked. Plans are in place to upgrade the “Kaushya” brand of Arunachal Silk by diversifying products, introducing new designs, and increasing production capacity.The textile and handicraft sector will receive Rs 41 crore for further growth.
iv.Under the Chief Minister (CM)’s Rural Connectivity Scheme, Rs 2,000 crore will be invested over four years to develop roads and bridges in villages not covered under the Pradhan Mantri Gram Sadak Yojana (PMGSY), aiming for complete village connectivity by 2029.
v.A total of Rs 106 crore has been allocated for skill development initiatives. Rs 369 crore has been set aside to strengthen the healthcare. Rs. 120 crore allocated for the Youth and Sports sector.
vi.Rs 108 crore has been allocated to tourism, including Rs 50 crore for improving the riverfront at Parashuram Kund. The state government allocated Rs. 392 crore for women and child development and Rs. 106 crore towards the skill development.
vii.The Chief Minister’s Social Security Scheme, which supports nearly 70,000 elderly individuals, widows, and persons with disabilities (Divyangs), has been allocated Rs 100 crore.
- Additionally, the MLALAD (Member of Legislative Assembly Local Area Development) fund per constituency has been raised from Rs 3 crore to Rs 4 crore, ensuring more resources for local development.
New Initiative:
i.Under the National Mission on Edible Oils – Oil Palm, the state plans to expand oil palm cultivation to 35,723 hectares by FY 26, up from the current 8,681 hectares. This is supported by India’s first integrated crude palm oil mills in Roing and Ruksin in AR.
ii.A new initiative, the ‘Arunachal Millet and Buckwheat Mission,’ will be launched with Krishi Vigyan Kendras to revive traditional farming. The mission will provide farmers with technical, financial, and marketing support, with an initial allocation of Rs 2 crore.
iii.The Chief Minister’s Comprehensive State Power Development Programme, with a total allocation of Rs. 2,000 crore, will be implemented over the next three years. This initiative will focus on the expansion and modernization of the power sector, in alignment with central funds for enhanced synergy and progress.
About Arunachal Pradesh (AR):
Chief Minister (CM)– Pema Khandu
Governor– Kaiwalya Trivikram Parnaik
Capital– Itanagar
National Parks (NP)– Namdapha NP , Mouling NP
