In March 2025, the Chief Minister (CM) of Mizoram Pu Lalduhoma presented Rs 15,198.76 crore budget for the Financial Year 2025-26 (FY26) in the state legislative assembly in Aizawl, Mizoram. He also announced Rs 350 crore has been allocated for the implementation of state’s flagship, ‘Bana Kaih Scheme(Hand Holding)’ for FY26, marking a significant increase of 75% in fund allocation for the scheme compared to Rs 200 crore allocated in the current fiscal year.
- Mizoram’s CM who also holds the finance ministry, presented Rs 3,512.33 crore in supplementary demands for grants for FY25 (2024-25).
- He also announced that no new tax will be imposed but emphasized strengthening tax administration and increasing revenue from the online lottery.
Financial Indicators:
i.Of the total amount estimated under revenue receipt and capital receipt for FY26, Rs 2,616.33 crore is expected from the state’s own tax revenues and non-tax revenues and Rs 10,331.28 crore from the centre government in the forms of share of taxes, revenue deficit grant, Centrally Sponsored Scheme(CSS) and other grants.
ii.The budget estimated revenue expenditure at Rs 12,540.20 crore for FY26, which accounts 82.51% of the total budget expenditure and 4.88% higher than the current fiscal estimate of Rs 11,957 crore.
iii.Rs 2,658.56 crore has been allocated for Capital Expenditure (capex), accounts 17.49% of the total estimated expenditure and also marks an increase of 8.29% compared to Rs 2,455 crore allocated for FY25.
iv.The Gross State Domestic Product (GSDP) is estimated to reach Rs 36,088.82 crore for FY26 against Rs 34,003.27 crore estimated for FY25.
- The state government adopted a new realistic approach for calculating GSDP. So, with revised calculation, the GSDP for FY25 Revised Estimate (RE) is now estimated at Rs 34,003.27 crore, marking a decrease of Rs 14,034.25 crore from the previous estimate of Rs 48,037.52 crore Budget Estimate (BE).
v.The state government informed that debt-to-GSDP ratio is estimated at 29.22% for FY25 (BE), with accumulated outstanding amounting to Rs 14,034.76 crore.
- He further informed that Revised Estimates (RE) for FY25 show that outstanding debts at Rs 13,030.82 crore, which is Rs 1,003.94 crore lower than BE for FY25.
- The Fiscal Deficit(FD) is estimated at Rs 1,651.68 crore for FY26, which accounts 4.57% of GSDP.
Key Allocations:
i.The state government has proposed to introduce a universal health scheme from April, 2025, to provide health insurance of up to Rs 5 lakh annually to eligible beneficiaries.
- Also, the government has allocated Rs 50 crore for the implementation of the proposed scheme and other health-related infrastructure.
ii.The government has allocated Rs 500 crore and Rs 100 crore, for power purchase and road maintenance, respectively.
- It has increased the budget allocation for road fund board from Rs 40 crore to Rs 55 crore.
iii.Rs 74 crore has been allocated for rural local body and Rs 40 crore for urban local body for FY26 as recommended by the Finance Commission (FC).
iv.The state government proposed to allocate a total Rs 4,747.24 crore for the social services sector, which accounts 31.23% of the total estimated expenditure for FY26.
Note: Social services sector comprises several components including education, sports, health and family welfare, water supply and sanitation, among others.
About Bana Kaih Scheme:
i.The scheme was officially launched in September 2024, which aimed to provide financial assistance and support entrepreneurs and farmers (‘progress partners’) targeted programmes designed to economic growth and self-sufficiency.
ii.Handholding to progress partners is one of the key components of the scheme, under which the state government provides financial assistance and offers loans up to Rs 50 lakh to beneficiaries through partner banks.
iii.The state government introduced support prices for 4 key crops: ginger, turmeric, Mizo chilli and broomsticks.
- It also plans to purchase these 4 agricultural crops from the farmers in the next financial year.
Important Terms:
i.Capital Expenditure (Capex): means creating the assets and infrastructures for the public, improving productivity, employment generation and investment.
ii.Revenue Expenditure: It includes mainly salaries and wages, pension expenses, interest payments and power purchases, among others.
About Mizoram:
Chief Minister (CM)- Pu Lalduhoma
Governor- General (Retd.) Dr. Vijay Kumar Singh
Capital- Aizawl
National Parks (NPs)- Murlen NP, Phawngpui NP
