Kohima, March 26 – Chief Minister Neiphiu Rio of Nagaland presented a deficit budget of ₹337.04 crore for the financial year 2026-27 in the assembly, citing a sharp decrease in the state’s share of central taxes.
Rio, who also holds the finance portfolio, described the budget as inclusive and growth-oriented, and announced 17 new programs in sectors such as women entrepreneurship, skill development, transportation, and agriculture.
Presenting the budget on the first day of the second phase of the budget session, the chief minister estimated gross receipts at ₹22,507.10 crore and gross expenditure at ₹22,127.33 crore.
He stated that the state's own revenue, including taxes and non-tax revenue, is projected at ₹2,714.44 crore, while its share in central taxes is estimated at ₹7,341.28 crore.
Central assistance in the form of grants and loans is pegged at ₹9,471.08 crore, with internal debt estimated at ₹2,978.77 crore and recovery of loans and advances at ₹1.53 crore.
On the expenditure side, non-development expenditure (excluding debt servicing) is estimated at ₹13,337.51 crore, while servicing of debt, including repayment of ways and means advances, is projected at ₹2,618.74 crore, the CM said.
Development expenditure, including centrally sponsored schemes, is estimated at ₹6,171.08 crore. An additional ₹305 crore has been earmarked for the public account, including pension payments.
Rio said that while the estimated receipts and expenditure for 2026-27 would result in a surplus of ₹74.77 crore, the negative opening balance of ₹411.81 crore from 2025-26 would lead to a closing deficit of ₹337.04 crore.
Describing the budget as “inclusive, sustainable, and growth-oriented,” he said it serves as a roadmap towards “Developed Nagaland @ 2047.”
The chief minister announced 17 new initiatives with a total outlay of ₹62 crore.
He also informed the House that the development outlay for 2026-27 has been fixed at ₹1,350 crore, marking a 12.5 per cent increase from the previous year’s ₹1,200 crore.
Sector-wise allocation shows general services and others receiving the largest share at ₹259.98 crore (19.26 per cent), followed by general economic services at ₹253.97 crore (18.81 per cent). The state's share for the centrally sponsored schemes accounts for ₹250 crore (18.52 per cent), while social services, including health, education, and welfare, have been allocated ₹235.74 crore (17.46 per cent).
Agriculture and allied sectors have been allocated ₹59.74 crore (4.43 per cent), and the transport sector ₹41.42 crore (3.07 per cent).
Other allocations cover energy, industries, rural development, science and technology, and special area programs.
Rio expressed concern over the revised formula of the 16th Finance Commission for horizontal devolution, which has reduced Nagaland’s share in central taxes from 0.569 per cent to 0.481 per cent, a decline of about 15 per cent in relative terms.
He said the state is projected to receive ₹7,341 crore under the new formula, compared to ₹8,684 crore it would have received under the earlier system, impacting developmental expenditure.
Among key initiatives, the government proposed an Innovation Seed Fund of ₹2 crore to support 1,000 nano women entrepreneurs. To promote women’s participation in the transport sector, 50 “Pink Scooty Taxis” will be introduced on a pilot basis in Kohima, Mokokchung, and Chumoukedima.
Other initiatives include the Nagaland Strategic Water Resilience Initiative (₹24 crore), the Chief Minister’s Community Solar Partnership Initiative under the Nagaland Solar Mission (₹11 crore), and green economy initiatives under NEPED and the Nagaland Bamboo Development Agency.
The government has also allocated ₹5 crore to expand the Nagaland Skill & Entrepreneurship Development Mission, ₹1 crore for the Chief Minister’s Science, Technology, Engineering & mathematics (STEM) Incentive Programme, and ₹1 crore for the Nagaland Open Learning Support Scheme.
A sum of ₹3 crore has been earmarked under the Chief Minister’s Sports Advancement Initiative to promote Naga athletes at the international level.
Additionally, ₹5 crore has been allocated for the Nagaland Agro-based Produce Logistic Support Scheme to improve aggregation, transportation, and market linkages for local produce.
Reiterating the government’s commitment to fiscal discipline, Rio said the focus is on ensuring that public expenditure delivers measurable social and economic outcomes while creating opportunities for youth and strengthening local economies.
Speaker Sharingain Longkumer said that the discussion and passage of the budget will be taken up on Friday.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.