Nagaland chief minister Dr. Neiphiu Rio, presents 2026-27 budget to NLA

CM unveils roadmap for ‘Developed Nagaland by 2047’

Nagaland chief minister Dr. Neiphiu Rio, who also holds the finance portfolio, presented his budget for 2026-27 during the phase-II of the 8th Session of the 14th Assembly Thursday, projecting a net surplus of Rs 74.77 crore, that is expected to close with a deficit of Rs 337.04 crore due to a negative opening balance of Rs 411.81 crore. He also outlined a comprehensive roadmap aimed at achieving a “Developed Nagaland by 2047”, and maintaining fiscal discipline alongside wide-ranging developmental initiatives.
In his budget speech, Dr. Rio cited reduction in the state’s share of central taxes due to discontinuation of Post-Devolution Revenue Deficit Grants under the revised formula of the 16th Finance Commission (2026-2031). The reduction is from 0.569 percent to 0.481 percent, a decline of about 15 percent in relative terms. He said Nagaland’s share in central taxes pegged at Rs 7,341.28 crore is down from Rs 8,684 crore under the earlier formula.
He said the state had apprised union finance minister Nirmala Sitharaman about the fiscal difficulties and sought continued grants-in-aid to address an anticipated fiscal shortfall and safeguard Nagaland’s unique constitutional status under the 16-Point Agreement.
Rio said the state was proceeding with full budget presentation following a clear and reassuring concurrence of the Finance Minister in this regard.
He informed the House that gross receipts for 2026-27 were estimated at Rs.22,507.10 crore and gross expenditure at Rs.22,127.33 crore. He said net current transactions would yield a surplus of Rs.74.77 crore. However, due to a negative opening balance of Rs.411.81 crore, the State was projected to close the year with a deficit of Rs.337.04 crore. He also highlighted that the closing deficit for 2025–26 had improved from Rs.843.21 crore in the Budget Estimates to Rs.411.81 crore in the Revised Estimates.
Emphasising fiscal discipline, the chief minister noted concerns raised by Finance Commissions over high revenue expenditure, particularly on salaries. He reiterated the government’s commitment to fiscal consolidation through improved revenue generation, controlled expenditure and deficit management, while ensuring sustained development.

New initiatives, sectoral allocations outlined: Rio announced a series of initiatives focusing on governance reforms, women empowerment, social development and economic growth.
For the first time, the State introduced an SDG-linked budget framework, Gender Budget Statement and outcome budgeting to strengthen accountability under a “whole-of-government” approach.
Women-centric measures include Rs.2 crore Innovation Seed Fund for 1,000 nano women entrepreneurs, introduction of 50 Pink Scooty Taxis in three districts, and crèches in major government offices starting with the Civil Secretariat. Rs.2 crore has also been allocated for capacity building of public servants, including gender-responsive planning.
To enhance water security, Rs.24 crore has been earmarked for the Nagaland Strategic Water Resilience Initiative. In energy, Rs.11 crore has been allocated for rooftop solar systems under the Chief Minister’s Community Solar Partnership Initiative.
Green economy initiatives through NEPED and NBDA will promote eco-friendly livelihoods. Skill development includes Rs.5 crore for NSEDM and Rs.50 lakh for NAPEx.
In education, Rs.1 crore each has been allocated for the Nagaland Academic Excellence Corpus, STEM Incentive Programme and Open Learning Support Scheme.
Social initiatives include Rs.50 lakh for Community Wellbeing and Rs.2 crore for Cleanliness Performance Incentive. In sports, Rs.3 crore has been earmarked under the Chief Minister’s Sports Advancement Initiative.
To boost revenue, the government will establish a Revenue and Development Fund Mobilisation Cell and Integrated Land Revenue Mobilisation Initiative with Rs.1 crore each, alongside rollout of e-stamps and e-GRAS.
Economic measures include incentives up to Rs.10 lakh under the Nagaland Gross Value-Addition Promotion Initiative, Rs.5 crore for Agro-based Produce Logistic Support Scheme and Rs.1 crore for Weavers’ Advancement initiative.

Sectoral allocations: Agriculture and allied sectors received Rs.21.09 crore, while land revenue got Rs.4.85 crore and Land Bank Rs.200 crore. Power sector allocations include Rs.9.29 crore (distribution), Rs.11.42 crore (transmission & generation), Rs.3 crore (renewable energy) and Rs.1 crore (electrical inspectorate).
Industries and commerce received Rs.9.75 crore and geology & mining Rs.7.50 crore. Roads and transport allocations include Rs.30 crore (roads & bridges), Rs.9.41 crore (transport), Rs.3 crore (mechanical) and Rs.4 crore (motor vehicles).
Science & technology got Rs.2.82 crore and IT & communication Rs.5.35 crore. Planning allocations include Rs.250 crore for CSS share, Rs.132 crore LADP, Rs.12 crore SDP and Rs.2.5 crore SDG initiatives. Art & culture received Rs.7.45 crore and tourism Rs.17.20 crore.
Education sector allocation stands at Rs.30.38 crore. Youth & sports received Rs.10.43 crore, health Rs.10.10 crore, PHED Rs.6.22 crore, housing Rs.31.15 crore, CAWD Rs.26 crore and police housing Rs.13.57 crore.
Urban development received Rs.17.49 crore and municipal affairs Rs.4.40 crore. Nagaland also secured Rs.100 crore for Nagaki City under the Green Field Cities Competition.
Other allocations include IPR (Rs.4.39 crore), economics & statistics (Rs.4.71 crore), food & civil supplies (Rs.4.74 crore), labour (Rs.2.97 crore), employment & skill development (Rs.4.70 crore), social welfare (Rs.5.29 crore), women resources (Rs.4.30 crore), general services (Rs.22.10 crore), taxes (Rs.4.30 crore), village guards (Rs.5.56 crore), election (Rs.4.01 crore), NSDMA (Rs.3.50 crore), tribal affairs (Rs.5.60 crore), minority affairs (Rs.4.50 crore) and state lotteries (Rs.1 crore).
Rio said the government remained committed to ensuring measurable outcomes while building a resilient, inclusive and sustainable Nagaland, and commended the Budget to the House.

Nagaland Budget 2026-27 At A GLANCE