Nagaland chief minister, Neiphiu Rio, who holds the crucial finance portfolio, presented Rs 905.78 cr deficit budget on the second day of the ongoing fourth session of the 14th NLA Tuesday.
Rio’s budget speech indicated that gross receipts stood at Rs 23978.05 cr while gross expenditure was at Rs 23727.88 cr for the financial year 2024-25.
He informed that the closing accumulated deficit was reduced from the estimated closing amount of Rs 1374.17 cr in the Budget Estimates to Rs 885.95 cr in the Revised Estimates. However, since the current year’s transactions were estimated to result in a negative balance of Rs 19.83 cr, the year 2024-25 was estimated to close with accumulated deficit of Rs 905.78 cr.
The reduction in deficit was mainly on account of reduction in the following liabilities – Rs. 368.21 cr as Backlog of CSS and Rs. 120.01 cr as Civil Deposit.
He also informed that the State Plan for 2024-25 has been increased from Rs 820 cr to Rs 1010 cr, an increase of 23.17%.
The Budget for 2024-25 has incorporated into the Demands for Grants State Matching Share to CSS amounting to Rs.125.80 cr. Further Rs 125.80 cr has been kept in the common pool for allocation on need basis.
He said the previous year 2023-24 saw an increase of Rs. 401.68 cr (Tax Revenue Rs. 97.60 cr & Non-Tax Revenue Rs. 304.08 cr). For the coming year, he said Rs. 216.81 cr increase is expected in Own Tax Revenue and Rs. 82.67 cr in Own Non-Tax Revenue.
The revenue projections of 2024-25 showed a huge reduction in Non-Tax revenue as compared with 2023-24. The chief minister said this was mainly because there were huge receipts in SRE during 2023-24. During 2024-25 SRE reimbursement is expected to be less.
Under State’s Share of Union Taxes and Duties, an increase of Rs. 472.52 cr has been reflected in the Revised Estimates of 2023-24. He said this was as per the figures reflected in the Union Budget.
Tax and Non-Tax revenues showed a positive growth trend but however barely sufficient to meet the salary expenditure of 2-3 months, he said. Accordingly, the State Government will continue to explore ways of increasing its own revenues through various measures to enhance efficiency, plug leakages and open the oil and mineral sectors.
Among the perennial concerns, Rio said Power sector continues to experience huge losses. During the current FY 2023-24, against the amount of Rs. 594.66 crore to be spent on power purchase, revenue collections are estimated at Rs. 315 crore only.
The chief minister said this will result in a loss of Rs. 279.66 crore.
However, all efforts are being made to enhance revenue collections, he added.
Rs. 180 cr sanctioned for Eastern Nagaland: Chief minister Neiphiu Rio said that the issues concerning the people of Eastern Nagaland remained top priority for the government.
Rio acknowledged the region’s lag in critical areas of infrastructure and socio-economic development, Rio announced the sanctioning of Rs 180 crore under the PM DevINE initiative for the Eastern Nagaland areas. He believed this allocation would contribute significantly to developmental efforts in the Eastern Districts.
The chief minister noted the demands placed by the people of Eastern Nagaland before the Central government and reiterated the commitment to work together to address their grievances. He urged everyone to ensure that their shared history, brotherhood, and common future remain intact.
Rio also expressed concerns about the decision of the Centre to suspend the Free Movement Regime (FMR) along the international border with Myanmar. He emphasized that the boundaries dividing communities were man-made and called for comprehensive consultations to reconsider the decision and ensure the continuation of FMR.
Naga political issue: Rio also renewed his government’s decades-long efforts for securing solution to the Naga political issue.
He said the signing of the Framework Agreement on August 3, 2015 and the Agreed Position with the NNPGs on November 17, 2017 raised hopes that the people would have a peace accord soon.
He highlighted the State Government’s role as an active facilitator in the peace talks but noted the lack of a conclusive outcome despite numerous resolutions and consultative meetings.
He said: “Our children today have high aspirations in life like their peers in other parts of the world. We owe the younger generation a secure future and to achieve that, make all possible efforts to resolve the Naga political issue so that our children can realise their full potential”.
In this regard he urged all parties involved including the Government of India and the Naga Political groups, to arrive at a solution that was honourable, acceptable and inclusive at the earliest.
Monday, August 25, 2025