In March 2025, the Chief Minister (CM) of Nagaland Neiphiu Rio who also holds the finance portfolio, presented Rs 24,849 crore state budget for Financial Year 2025-26 (FY26) in the Nagaland Legislative Assembly in Kohima, Nagaland.
- The budget for FY26 reflects the state government’s unwavering commitment to fostering development, enhancing civic amenities, and generating employment opportunities for citizens of the state.
- The budget estimated the total receipts for FY26 at Rs 24,849.01 crore and total expenditure at Rs 24,699.01 crore.
Financial Estimates:
i.While presenting the budget, CM highlighted that total development outlay including Centrally Sponsored Scheme (CSS) stands at Rs 5,819.24 crore for FY26, of which Rs 1,200 crore is contributed from state’s own resources, marks an increase of Rs 190 crore compared to the last year, registering a growth of 18.81%.
ii.Rs 8,216.25 crore has been estimated for central assistance, including grants and loans, while internal debt, comprising Ways and Means Advances (WMA) from the Reserve Bank of India (RBI), was estimated at Rs 6,065.41 crore and the recovery of loans and advance by the state government expected at Rs 1.52 crore for FY26.
iii.Of the total expenditure, non-development expenditure was estimated to reach Rs 12,949.72 crore, and Rs 5,930.05 crore has been allocated for debt servicing, including the repayment of WMA.
- While, development expenditure, including CSS, has been anticipated at Rs 5,819.24 crore.
iv.The budget has pegged the state’s Fiscal Deficit(FD) at Rs 843.21 crore, a slight improvement compared to FY25 estimate of Rs 905.78 crore.
Key Allocations:
i.Skill Development: Rs 5 crore has been allocated for the ‘Nagaland Skill Mission’ which aims to train 5,000 youth in FY26 in self-employment and private-sector employment, with entrepreneurships linked to the Chief Ministers Micro Finance Initiative (CMMFI).
ii.Infrastructure development: The budget has allocated Rs 55 crore to the roads and bridges department of the state for implementing a special road development program, and Rs 30 crore for maintenance of existing roads.
- Additionally, Rs 3 crore has been allocated to the mechanical department for procurement of heavy machineries, and construction of boundary wall for the mechanical workshop-cum-training centre at Shokhuvi, Chumoukedima.
- Rs 7.88 crore has been earmarked for construction of sub-station and garages at various districts, upgradation of workshop at Lerie, booking office at Tamlu and setting up of Aviation, Inland Waterways and Railways Cell.
iii.Science and Technology(S&T): Total Rs 2.71 crore has been allocated to the state’s S&T department for its infrastructure development and for Nagaland Science Mission.
- Also, the state government has allocated Rs 3.86 crore to the department of Information Technology and Communication for construction of buildings and establishment of Artificial Intelligence (AI) and Research Centre.
iv.Renewable Energy(RE): The budget has allocated Rs 10 crore for Nagaland Solar Power Mission, which offers subsidies of up to Rs 50,000 per consumer to promote solar energy adoption.
- This state’s solar power mission is in alignment with the Prime Minister Surya Ghar Muft Bijli Yojana(PMSGMBY), which aims to enhance energy security while reducing long-term power costs for consumers.
v.Agriculture and Allied sector: The government has allocated total Rs 49.03 crore to the agriculture and allied sector for FY26, of which Rs 11.55 crore has been earmarked to the state’s agriculture department for construction of agri-link roads, office buildings and agri park at Kisama heritage village.
- Also, Rs 6 crore has been allocated to the horticulture department for construction of office buildings in newly created districts, short-link roads, strawberry model farming project at Zubza.
vi.Health and Welfare: The budget has allocated Rs 15 crore for next year’s premium of Chief Minister’s Life Insurance Scheme (CMLIS), which was launched on October 1, 2024 with nearly 4 lakh enrollments.
vii.Education: The state government has earmarked Rs 10.63 crore for infrastructure, Information Technology (IT) equipment, and accreditation activities.
- While, Rs 14.05 crore has been allocated for the construction of District Education Officer (DEO) and SDEO buildings and Rs 5crore for school maintenance.
New Initiative/ Announcement:
i.Key allocations to other sectors: social welfare (Rs 5.30 crore), tourism (Rs 14 crore), sports and youth development (Rs 13.55 crore), transport (Rs 7.88 crore), among others.
- The state government announced the Nagaland Tourism, Hospitality and Transport Scheme. Under this scheme, concessional loans will be provided to entrepreneurs to set up 500 homestays and 200 tourist transport vehicles.
ii.The state government has proposed to set up banking facilities in 20 unbanked development blocks, including approach roads and buildings.
iii.Radio Frequency Identification (RFID)-based e-way bill tracking will be introduced, reducing delays and revenue leakages. Integrated with Goods and Services Tax(GST) and transport databases and Rs 2 crore has been allocated for this initiative.
iv.During the budget, CM announced the launch of ‘CM’s Fellowship Programme’ to promote future leaders and policy innovators, with estimated budget outlay of Rs 2.5 crore.
v.Living Morung Initiative introduced with Rs.5 crore allocation.The aim of this initiative to preserve Naga cultural heritage by reviving Morung-style cultural hubs for intergenerational learning and skill training.
vi.To fast track the developmental needs of villages in the interstate border areas, a new initiative introduced with an allocation of Rs 15 crore.
vii.The state government also announced the Drone Training and Logistics Program where an amount of Rs. 2.50 crore has been earmarked.
- Also, a total Rs 190 crore has been allocated for various developmental activities in FY26.
About Nagaland:
Chief Minister (CM)- Neiphiu Rio
Governor- La Ganesan
Capital- Kohima
National Parks (NPs)- Ntangki NP
