Nagaland chief minister Dr. Neiphiu Rio , who holds the crucial finance portfolio, Thursday presented a Rs 24,849.01 crore budget for the fiscal year 2025-26 with a gross expenditure at Rs 24,699.01 crore thereby leaving with a closing deficit of Rs. 843.21 crore for the financial year 2025-26.
Dr Rio in his budget speech said that despite the negative balance, the state’s fiscal deficit for 2024-25 has been estimated to improve by Rs 62.57 crore from the earlier projection of Rs 905.78 crore, now estimated to close at Rs 843.21 crore.
Breaking down the receipts, he said the state’s own tax and non-tax revenue was expected to generate Rs 2,472.13 crore, while the share in central taxes had been projected at Rs 8,093.70 crore.
Central assistance, comprising grants and loans, was estimated at Rs 8,216.25 crore, while internal debt, including Ways and Means Advances (WMA) from the Reserve Bank of India, was anticipated at Rs 6,065.41 crore, and the recovery of loans and advances by the state government pegged at Rs 1.52 crore.
On the expenditure side, non-development expenditure was expected to touch Rs 12,949.72 crore, while Rs 5,930.05 crore has been earmarked for debt servicing, including the repayment of WMA. Development expenditure, including Centrally Sponsored Schemes (CSS), has been estimated at Rs 5,819.24 crore, bringing the total projected expenditure to Rs 24,699.01 crore.
Although the balance between gross receipts and expenditures results in a surplus of Rs 150 crore, a net negative balance of Rs 150 crore from public accounts offsets this, leaving the net current transactions for 2025-26 at zero. However, due to the negative opening balance from the previous fiscal year’s deficit, the financial year 2025-26 is projected to close with a deficit of Rs 843.21 crore.
Push for growth, jobs and reforms
Dr. Rio also outlined the government’s vision for development, employment generation, and lasting peace. Addressing the assembly while presenting the budget, Dr. Rio expressed gratitude to the people of Nagaland for their continued support and trust in the government’s efforts to drive progress.
The total developmental outlay for the year 2025-26 stands at Rs.5,819.24 crore, with Rs.1,200 crore coming from the state’s own resources—an increase of Rs.190 crore from the previous year, reflecting an 18.81% growth.
Political and governance initiatives: The CM reiterated the state government’s role as a facilitator in the ongoing Indo-Naga political talks and informed the House that the Political Affairs Committee (PAC) had resolved to hold consultations with tribal and civil society organizations on the Naga political issue. He urged all negotiating parties to work toward an “honourable, inclusive, and acceptable” resolution.
Regarding concerns raised by the eastern regions of the state, the CM assured that the government remains committed to addressing them through sincere action. The state cabinet deliberated on the Frontier Nagaland Territorial Authority (FNTA) and submitted its comments on the third Draft Memorandum of Settlement to the Union Home Ministry.
As part of governance reforms, the CM announced the creation of Nagaland’s 17th district. The former Meluri sub-division of Phek district was inaugurated as a separate district on February 21, 2025, named the “Land of Fortune.”
Fiscal management and revenue mobilization: The state government submitted a memorandum to the Sixteenth Finance Commission seeking a substantial Revenue Deficit Grant and Capital Deficit Grants. The state also requested the Commission to waive the mandatory property tax requirement for Urban Local Body (ULB) grants, citing Article 371(A) and Nagaland’s unique landholding system.
Health and Welfare: Chief Minister’s Health Insurance Scheme (CMHIS): 12,047 beneficiaries availed benefits, with 66 empanelled hospitals.
Chief Minister’s Life Insurance Scheme (CMLIS): Launched on October 1, 2024, with 3,99,915 enrollments; Rs.15 crore allocated for next year’s premium.
Employment and Skill Development: Nagaland Skill Mission– Rs.5 crore allocated to train and employ 5,000 youth in hospitality, tourism, banking, insurance, construction, healthcare, logistics, and drone technology.
Drone Training and Logistics Program: Rs.2.5 crore allocated to establish Nagaland as a leader in drone technology.
Nagaland Tourism, Hospitality, and Transport Scheme: Concessional loans for 500 homestays and 200 tourist transport vehicles.
Infrastructure and Power: Nagaland Solar Power Mission: Rs.10 crore allocated; subsidy of Rs.20,000 per kW up to Rs.50,000 per consumer for rooftop solar installations.
Roads and Bridges: Rs.55 crore allocated for road infrastructure, Rs.30 crore for maintenance.
Transport: Rs.7.88 crore allocated for sub-stations, garages, and workshop upgrades; 40 new buses for Nagaland State Transport (NST).
Education and Cultural Promotion: School Education: Rs.14.05 crore allocated for constructing DEO and SDEO buildings, with Rs.5 crore for school maintenance.
Higher Education: Rs.10.63 crore allocated for infrastructure, IT equipment, and accreditation activities.
Living Morung Initiative: Rs.5 crore allocated for preserving and integrating cultural heritage.
Tourism: Rs.14 crore allocated for Hornbill Festival, Mini Hornbill events, and office construction.
Sports and Youth Development: Youth Resources and Sports: Rs.13.55 crore allocated for infrastructure and TaFMA activities.
Sports Infrastructure: 15 multi-discipline indoor stadiums and 15 futsal grounds under construction; plans to expand facilities to sub-divisions.
Nagaland Super League: Plans underway for a premier professional sports league; state set to host an Asian-level Wrestling Championship.
Banking and Financial Inclusion: Banking Access: Initiatives to establish banking facilities in 20 unbanked development blocks, including approach roads and buildings.
Tax Reforms: Citizens encouraged to demand GST cash memos; RFID posts to be installed for e-way bill compliance.
Smart Prepaid Meters: Initiated across the state to enhance billing efficiency and accountability.
Social Welfare and Urban Development: Social Welfare: Rs.5.30 crore allocated for Child Development Project Office (CDPO) buildings and 32 model anganwadi centres.
Urban Development: Rs.17.41 crore for urban roads and infrastructure, Rs.25 crore for maintenance.
Housing: Rs.25.86 crore for rental housing, staff quarters, and office buildings; Rs.4.5 crore for maintenance.
Police Housing: Rs.14.11 crore allocated for police stations, staff quarters, and SP residences.
Road infra: For Roads and Bridges department, there has been an increase in the allocation to Rs. 55 crore for implementing Special Road Development Program, improvement of other roads and rehabilitation of bridges. Rs.30 crore has been provided for maintenance of existing roads.
Road Transport department has been provided Rs. 7.88 crore for construction of sub-station and garages at various districts, upgradation of workshop at Lerie, booking office at Tamlu and establishment of Aviation, Inland Waterways and Railways Cell.
GST & Tax: In an effort to curb tax evasion and enhance transparency, the government is actively promoting the adoption of digital invoicing and encouraging citizens to demand GST cash memos for all transactions. To further streamline tax collection, a dedicated research wing within the State Taxes Department will analyze tax data using advanced analytics and artificial intelligence to identify evasion patterns.
Additionally, Radio Frequency Identification (RFID) posts will be installed along major interstate routes to ensure compliance with e-way bill requirements and curb revenue leakages.
To address revenue losses and meet the growing demand for power supply, the government has embarked on a large-scale initiative to install smart prepaid meters across the state. These meters are designed to enhance billing efficiency, improve accountability, reduce power pilferage, and provide consumers with emergency credit facilities.