Nagaland chief minister Dr. Neiphiu Rio termed the state’s 2025-26 budget as a “balanced and forward-looking” financial plan, emphasizing efforts to cut fiscal deficit and introduce new welfare schemes.
Nagaland chief minister Dr. Neiphiu Rio termed the state’s 2025-26 budget as a “balanced and forward-looking” financial plan, emphasizing efforts to cut fiscal deficit and introduce new welfare schemes.
Talking to media persons after presenting the Budget, Dr Rio also addressed the challenges plaguing the power sector and the urgent need for reforms to mitigate revenue losses.
Healthcare for all under CMHIS: Dr. Rio reiterated the government’s commitment to universal healthcare through the Chief Minister’s Health Insurance Scheme (CMHIS). Every citizen with a health card is entitled to cashless treatment up to Rs. 5 lakh annually without any personal contribution. The scheme covers 60 empanelled hospitals within the state and 66 outside Nagaland.
However, he cautioned beneficiaries against overcharging and unnecessary medication, urging them to be vigilant while availing the scheme’s benefits. The CMHIS also extends coverage to elected members of the state.
Fiscal deficit reduced by 50% in 6 years: The chief minister highlighted that the state’s fiscal deficit had been halved in the last six years, decreasing from Rs. 1,630.67 crore in 2018-19 to Rs. 843.21 crore in the current fiscal year. He credited this to prudent financial management and increased revenue receipts, enabling the government to make generous allocations and initiate new programs.
Power sector losses and need for reform: Dr. Rio described the power sector’s financial condition as “pathetic,” pointing out that the state spends nearly Rs. 600 crore annually but recovers only about 50% of that amount, leading to a loss of around Rs. 300 crore each year.
For 2023-24, Nagaland spent Rs. 572.26 crore on power purchases but collected only Rs. 282.78 crore, resulting in a loss of Rs. 289.48 crore—a revenue deficit of 50.59%. Similar trends have persisted, with a staggering 62.01% shortfall recorded in 2020-21.
Dr Rio identified power theft, non-payment of bills, and transmission inefficiencies as the primary causes of these losses.
He stressed the necessity of installing prepaid meters under the Revamped Distribution Sector Scheme (RDSS) to boost revenue collection and curb losses. Urban areas will be prioritized for prepaid meter installation, with an expectation that improved urban collections will subsequently enhance rural power supply.
To reduce dependence on expensive power purchases, Rio emphasized the need to strengthen the state’s hydropower sector. “Once we enhance our own power generation, we can direct more funds toward welfare programs,” he said, underscoring the urgency of addressing power sector inefficiencies for Nagaland’s economic stability and growth.
Finance Commissioner Sentiyanger Imchen outlined key initiatives of the 2025-26 budget, covering ongoing and new programs in welfare, financial inclusion, skill development, and infrastructure.
Ongoing Initiatives:
CM’s Health Insurance Scheme (CMHIS): Launched in 2022, CMHIS provides cashless healthcare coverage of Rs. 25 lakh per household under CMHIS (Gen) and Rs. 20 lakh under CMHIS (EP) for employees and pensioners. To date, 12,047 beneficiaries have availed 19,446 treatments, with Rs. 50.62 crore spent this fiscal year.
CM’s Life Insurance Scheme (CMLIS): Launched in October 2024, CMLIS provides Rs. 22 lakh in life insurance and up to Rs. 2 lakh for accidental death or disability. So far, 399,915 beneficiaries have enrolled, with 25 life insurance and five disability claims settled.
Nagaland Credit Empowerment Summit & CMMFI Expansion: The CMMFI has facilitated loans for 1,328 beneficiaries, with revised policies allowing collateral-free loans up to Rs. 50 lakh. Rs. 50 crore has been allocated for 2025-26.
Integrated Business Hub & Innovation Centre (IBHIC): Located in Dimapur, this hub supports training and incubation for entrepreneurs. The Unnati Skill Training Centre has enrolled 30 trainees, with 10 already placed.
New Initiatives:
Nagaland Skill Mission: Aims to train and place 5,000 youth in 2025-26 in industries such as construction, hospitality, healthcare, and logistics, with Rs. 5 crore allocated.
Living Morung Initiative: With Rs. 25 crore allocated, this initiative aims to preserve Naga cultural heritage by reviving Morung-style cultural hubs for intergenerational learning and skill training.
State Solar Power Mission: Seeks to reduce energy deficits through state and central subsidies for solar rooftop installations, with Rs. 10 crore earmarked.
Drone Training Centre: A nationally recognized program to provide certified job-linked training for drone pilots, technicians, and developers, with Rs. 2.5 crore allocated.
Expanding Banking Access: Infrastructure support will be provided to facilitate bank branches in 20 unbanked blocks, promoting financial inclusion.
Capacity Building: Rs. 2 crore is set aside for training local bodies and public servants in governance and digital management.
CM’s Fellowship Program: Rs. 2.5 crore allocated to nurture future leaders and policy innovators.
RFID-Based E-Way Bill System: A Rs. 2 crore initiative to enable real-time trade and tax compliance tracking, replacing manual inspections.
Improving NST Services: Plans include adding over 40 new buses and allocating Rs. 2.5 crore to upgrade key transport facilities.
Interstate Border Development: Rs. 15 crore allocated for infrastructure projects in border villages, including roads, power supply, and water access.
Financial Outlook: Nagaland’s budget reflects improved state revenue, with an anticipated Rs. 91.99 crore rise in tax revenue and Rs. 130.2 crore increase in non-tax revenue for 2025-26.
The state’s share of central taxes is projected to increase by Rs. 381.81 crore, bringing down the closing deficit for 2024-25 from Rs. 905.78 crore to Rs. 843.21 crore.
With a focus on fiscal responsibility, infrastructure development, and social welfare, the budget for 2025-26 aims to steer Nagaland toward economic resilience and sustainable growth.