Nagaland Budget: Deficit & Central Tax Share Drop

Kohima, Mar 26 (PTI) Nagaland Chief Minister Neiphiu Rio on Thursday presented a deficit budget of Rs 337.04 crore for the financial year 2026–27 in the assembly while citing a sharp decrease in the central tax share for the state.

Rio, who also holds the finance portfolio, described the budget as inclusive and growth-oriented, and announced 17 new programmes in sectors such as women entrepreneurship, skill development, transport and agriculture.

Presenting the budget on the first day of the second phase of the budget session, the chief minister estimated gross receipts at Rs 22,507.10 crore and gross expenditure at Rs 22,127.33 crore.

He stated that the state's own tax and non-tax revenue is projected at Rs 2,714.44 crore, while its share in central taxes is estimated at Rs 7,341.28 crore.



Central assistance in the form of grants and loans is pegged at Rs 9,471.08 crore, with internal debt estimated at Rs 2,978.77 crore and recovery of loans and advances at Rs 1.53 crore.

On the expenditure side, non-development expenditure (excluding debt servicing) is estimated at Rs 13,337.51 crore, while servicing of debt, including repayment of ways and means advances, is projected at Rs 2,618.74 crore, the CM said.

Development expenditure, including centrally sponsored schemes, is estimated at Rs 6,171.08 crore. An additional Rs 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 Rs 74.77 crore, the negative opening balance of Rs 411.81 crore from 2025-26 would lead to a closing deficit of Rs 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 Rs 62 crore.

He also informed the House that the development outlay for 2026–27 has been fixed at Rs 1,350 crore, marking a 12.5 per cent increase from the previous year's Rs 1,200 crore.


Sector-wise allocation shows general services and others receiving the largest share at Rs 259.98 crore (19.26 per cent), followed by general economic services at Rs 253.97 crore (18.81 per cent). The state's share for the centrally sponsored schemes accounts for Rs 250 crore (18.52 per cent), while social services, including health, education and welfare, have been allocated Rs 235.74 crore (17.46 per cent).

Agriculture and allied sectors have been allocated Rs 59.74 crore (4.43 per cent), and the transport sector Rs 41.42 crore (3.07 per cent).

Other allocations cover energy, industries, rural development, science and technology, and special area programmes.

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 Rs 7,341 crore under the new formula, compared to Rs 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 Rs 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 (Rs 24 crore), the Chief Minister's Community Solar Partnership Initiative under the Nagaland Solar Mission (Rs 11 crore), and green economy initiatives under NEPED and the Nagaland Bamboo Development Agency.

The government has also allocated Rs 5 crore to expand the Nagaland Skill & Entrepreneurship Development Mission, Rs 1 crore for the Chief Minister's Science, Technology, Engineering & mathematics (STEM) Incentive Programme, and Rs 1 crore for the Nagaland Open Learning Support Scheme.

A sum of Rs 3 crore has been earmarked under the Chief Minister's Sports Advancement Initiative to promote Naga athletes at the international level.

Additionally, Rs 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.