Chief Minister of Nagaland, Dr. Neiphiu Rio on 26th March 2026 presented the State Budget for 2026–27 during the Phase-II of the 8th Session of the 14th Nagaland Legislative Assembly, describing it as a strategic roadmap for achieving “Developed Nagaland @ 2047.”
Dr. Rio began by congratulating the people of the eastern districts on the signing of the agreement for the Frontier Nagaland Territorial Authority (FNTA), terming it a historic step towards enhanced participatory governance. He informed the House that the FNTA Bill is being tabled in the current session of the 14th Nagaland Legislative Assembly and that efforts are underway to expedite the formation of an interim body.
Reaffirming the government’s commitment to resolving the Naga political issue, the Chief Minister highlighted the constitution of the Political Affairs Committee (PAC), comprising ministers, tribal representatives, political parties, and MPs. He noted that a Sub-Committee under his chairmanship is further intensifying efforts. He also informed that following a meeting with the Union Home Minister on February 5, 2026, the Centre has initiated the formation of a committee led by a Union Minister of State in the Ministry of Home Affairs to monitor and advance the peace talks.
On fiscal matters, the Chief Minister expressed concern over the Sixteenth Finance Commission’s revised devolution formula, which reduces Nagaland’s share in central taxes by about 15 percent—from 0.569% to 0.481%. As a result, the State is projected to receive Rs 7,341 crore in 2026–27, compared to Rs 8,684 crore under the previous formula.
He also flagged the adverse impact of the discontinuation of Post-Devolution Revenue Deficit Grants. Referring to his meeting with Union Finance Minister Nirmala Sitharaman on February 4, 2026, he said the State has sought continued grants-in-aid to address an anticipated fiscal shortfall and safeguard Nagaland’s unique constitutional status.
Emphasizing 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 Under Budget 2026-27
Chief Minister, Dr. Neiphiu Rio under the budget 2026-27 announced a series of major new initiatives, focusing on governance reforms, women empowerment, social development, and economic growth, backed by targeted allocations and structural reforms.
For the first time, the State introduced an SDG-linked budget framework, a Gender Budget Statement, and outcome budgeting to strengthen accountability, monitoring, and outcome-based planning across departments under a “whole-of-government” approach.
Women-centric initiatives featured prominently, with Rs 2 crore allocated for an Innovation Seed Fund to support 1,000 nano women entrepreneurs through easy, collateral-free financial assistance and banking linkages. The government will also introduce 50 Pink Scooty Taxis across three districts to promote women’s participation in the transport sector, alongside the establishment of crèches in major government offices, beginning with the Civil Secretariat. Capacity building of public servants will continue with an allocation of Rs 2 crore, including training in gender-responsive planning.
To strengthen water security, the government will launch the Nagaland Strategic Water Resilience Initiative with an allocation of Rs 24 crore. The programme will focus on creation of water bodies, rainwater harvesting, groundwater recharge, and strategic storage systems across all district headquarters in a phased manner to improve climate resilience.
In the energy sector, Rs 11 crore has been allocated for the Chief Minister’s Community Solar Partnership Initiative under the Nagaland Solar Mission. The scheme aims to install 3 kW grid-connected rooftop solar systems in all Village Council buildings, reducing dependence on power imports while generating community revenue and promoting a green economy.
For environmental sustainability, initiatives under the green economy (allocation not specified) will promote eco-friendly livelihoods through programmes such as NEPED and the Nagaland Bamboo Development Agency (NBDA), including bamboo charcoal and briquette value chains, with potential to boost MSMEs.
In the area of skill development and employment, Rs 5 crore has been earmarked to expand the Nagaland Skill & Entrepreneurship Development Mission (NSEDM), with a focus on entrepreneurship, livelihood generation, and women-centric interventions.
Additionally, Rs 50 lakh has been allocated for the launch of the Nagaland Apprenticeship and Placement Exchange (NAPEx), a platform designed to connect job seekers with employers, create a workforce registry, and support employment opportunities, including for Nagas working outside the State. The platform will also be integrated with the Chief Minister’s Life Insurance Scheme (CMLIS) to provide social security coverage.
Education and youth development remain key priorities, with new initiatives such as the Nagaland Academic Excellence Corpus with an allocation of 1 crore aimed at upskilling faculty in emerging sectors like AI, digital economy, and green technologies. Additional schemes include the Chief Minister’s STEM Incentive Programme and the Nagaland Open Learning Support Scheme (allocations not specified) to support technical education and bring out-of-school youth into the workforce with an allocation of Rs 1crore each.
Social sector initiatives include Rs 50 lakh for the Community Wellbeing Initiative to promote mental wellbeing and social cohesion, and Rs 2 crore for the Cleanliness Performance Incentive to reward local bodies for improvements in sanitation and waste management.
In sports, Rs 3 crore has been allocated for the Chief Minister’s Sports Advancement Initiative to train athletes in five priority disciplines—archery, badminton, sepaktakraw, table tennis, and taekwondo—with a long-term goal of Olympic participation.
To strengthen revenue mobilisation and fiscal sustainability, the government will establish a Revenue and Development Fund Mobilisation Cell with an allocation of Rs 1 crore and an Integrated Land Revenue Mobilisation Initiative with an allocation of Rs 1 crore. Key digital reforms include the rollout of e-stamps and the e-GRAS platform to improve transparency, plug revenue leakages, and enhance ease of doing business.
On the economic front, the Nagaland Gross Value-Addition Promotion Initiative, a sub component of Chief Minister’s Micro Finance Initiative, will provide incentives of up to Rs 10 lakh to promote entrepreneurship and boost GSDP. The government has also allocated Rs 5 crore for the Agro-based Produce Logistic Support Scheme to improve market access, reduce post-harvest losses, and enhance farmers’ income.
Additionally, the Nagaland Weavers’ Advancement and Market Formalisation initiative with an allocation of Rs 1 crore will support traditional artisans through improved market linkages, GI tagging, and integration into the formal economy.
Dr. Rio said these initiatives underscore the government’s commitment to fostering an inclusive, sustainable, and growth-oriented ecosystem aligned with the vision of “Developed Nagaland @ 2047.”
Nagaland Budget 2026–27: Key Sector-wise Allocations and Initiatives
Agriculture and Allied Sector – Total Allocation: Rs 21.09 crore
·Agriculture Department – Rs 10.95 crore for Agri infrastructure and Agri Park at Kisama Heritage Village.
·Horticulture Department – Rs 6.55 crore for post-harvest management and value addition of strawberry, development of flower cluster model villages, and Horti infrastructure in Shamator.
·Soil & Water Conservation – Rs 3.59 crore for Comprehensive Sustainable Land Development and other infrastructure projects.
·Animal Husbandry & Veterinary Services – Rs 6.20 crore to strengthen dispensaries, health centers, resource centers, rural livestock promotion, and control of African Swine Flu.
·Fisheries & Aquatic Services – Rs 4.20 crore for cluster-based fisheries development and Fish Farmer Producer Organisations (FFPOs).
·Environment, Forest & Climate Change – Rs 5.50 crore for High-Tech Nursery, Agarwood plantation, and conservation initiatives.
·Cooperation Department – Rs 6.17 crore for construction of ARCS Offices in Niuland, Peren, Mokokchung, Wokha, and Zunheboto.
·Land Resources Department – Rs 6.25 crore for promotion of coffee plantations, Coffee Cafe, adaptation stations, and nursery development.
·Sericulture Department – Rs 5.30 crore for Eri silk development, spinning & reeling units, and departmental infrastructure.
·Rural Development Department – Rs 5 crore for BDO offices, rural roads, and Directorate complex improvements.
·State Institute of Rural Development (SIRD) – Rs 4 crore for Administrative-cum-Academic Block and training programmes.
·Nagaland Bamboo Development Agency, Bio resources and Aromatic Plant, Bee and Honey Mission, Nagaland Empowerment of People through Economic Development (NEPED) a nd Hygroger (NEPed) – all allocated Rs 1crore each
Land and Development – Key Allocations
·Land Revenue Department – Rs 4.85 crore for DGPS procurement and office buildings; Rs 200 crore for Land Bank.
·Development of Under Developed Areas (DUDA) – Rs 20.19 crore for human resource development, staff quarters, and iconic projects.
Power and Renewable Energy
·Power Distribution & Revenue – Rs 9.29 crore for substations, transformers, and line upgrades in Wokha, Phek, and Peren.
·Transmission & Generation – Rs 11.42 crore for departmental infrastructure.
·New & Renewable Energy – Rs 3 crore for 150 kW Thiza Ru Hydel Project, solar water heaters, and solar home lighting.
·Electrical Inspectorate – Rs 1 crore for Green Village initiatives.
Industries and Commerce – Total Allocation: Rs 9.75 crore
·Initiatives include Ease of Doing Business, Startup Nagaland Programme, MSME promotion, India Industrial Land Bank, export promotion, and infrastructure at Avangkhu ITC.
·Additional allocations: NHHDC, NKVIB, NHTDC Ltd. Rs 1 crore each and NTTC – Rs 50 lakh.
Geology and Mining – Rs 7.50 crore
·Mineral connectivity infrastructure, groundwater development, strategic mineral exploration, Mining Governance & Resource Management Centre, GIS-based assessment of minor minerals.
·Nagaland State Mineral Development Corporation – Rs 2.39 crore.
Roads, Transport, and Mechanical
·Roads & Bridges – Rs 30 crore for road improvement, bridge rehabilitation, and Trans-Nagaland Highway development.
·Mechanical Department – Rs 3 crore for heavy machinery procurement.
·Road Transport Department – Rs 9.41 crore for garages, sub-stations, workshops, bus sheds, and helipad maintenance.
·Motor Vehicles Department – Rs 4 crore for office buildings, staff quarters, and eco-friendly transport policy formulation.
Science, Technology & IT
·Science & Technology Department – Rs 2.82 crore for infrastructure and Nagaland Science Mission.
· Information Technology & Communication – Rs 5.35 crore for software development, State Data Centre enhancement, AI-enabled platforms, and Nagaland Innovation Hub in Chumoukedima.
Planning & Development Funds
· Planning Machinery – Rs 7.38 crore for SDPDB conference halls and other infrastructure.
· State Matching Share to CSS – Rs 250 crore.
· Other allocations: Special Development Programme – Rs 12 crore; SDG initiatives – Rs 2.5 crore; NIoT – Rs 1 crore; Aspirational Districts & Blocks – Rs 1.5 crore; LADP – Rs 132 crore; UDAP – Rs 50 lakh per area.
Art, Culture & Tourism
· Art & Culture – Rs 7.45 crore for cultural halls, exhibition spaces, traditional structures, and Hornbill Festival support.
· Tourism Department – Rs 17.20 crore for Hornbill and Mini Hornbill Festivals, office buildings, eco-tourism, and infrastructure.
Education – Total Allocation: Rs 30.38 crore
· School Education – Rs 12.89 crore for DEO/SDEO offices and school infrastructure.
· Higher Education – Rs 11.05 crore for classrooms, academic buildings, hostels, toilets, and hall upgrades.
· SCERT – Rs 3.24 crore for textbooks (KG2–Class 8) and infrastructure.
· Technical Education – Rs 3.20 crore for AI & ML lab hostels, and power connections.
Youth, Sports & Welfare Departments
· Youth Resources & Sports – Rs 10.43 crore for departmental buildings, youth empowerment, sports, and tournaments.
· Health & Family Welfare – Rs 10.10 crore for CHCs, PHCs, offices, staff quarters, and sub-centres.
· Public Health Engineering – Rs 6.22 crore for water supply improvements, departmental infrastructure, online billing, and rainwater harvesting.
· Housing – Rs 31.15 crore for rental housing, staff quarters, rest houses, and offices.
· CAWD – Rs 26 crore for office buildings, quarters, and rest houses.
· Police Housing – Rs 13.57 crore for offices, stations, barracks, and upgrades.
· Law and Justice Department – Rs 2.63 crore for various construction activities.
· Home Guards – Rs 3.29 crore for construction of Departmental infrastructure.
· Jails (Prison) Housing Department – Rs 5.61 crore for construction of Departmental infrastructure.
· Excise Department – Rs 3.20 crore for construction of buildings in Phek, Peren and Dimapur.
Urban Development & Green Field Cities
· Nagaland awarded Rs 100 crore for Nagaki City development under Central Government’s Green Field Cities Competition (2025–26).
· Urban Development – Rs 17.49 crore for roads, infrastructure, and drainage.
· Municipal Affairs – Rs 4.40 crore for sanitation, sewerage, and solid waste management.
· State Finance Commission – Rs 15.83 crore as share-in-taxes; Rs 9.16 crore as grant-in-aid.
Other Departments & Services
· Information & Public Relations – Rs 4.39 crore for AVGC-XR, films, and creative technology.
· Economics and Statistics Department – Rs 4.71 crore for construction of District Offices in Wokha, Kiphire, and Tseminyu, construction of staff quarters at Tuensang and Peren and various repairs and renovation of departmental infrastructure.
· Food and Civil Supplies Department – Rs 4.74 crore for construction of office buildings in Tuensang, Peren, and Zunheboto and construction of godowns at various locations.
· Legal Metrology and Consumer Protection Department –Rs 2.62 crore for construction and upgradation of various departmental buildings and trainings and consumer awareness programs.
· Evaluation Department –Rs 2.87 crore for various construction works and conducting evaluation studies.
·Labour Department – Rs 2.97 crore for office buildings and social security centres.
· Employment, Skill Development & Entrepreneurship – Rs 4.70 crore for rural youth/women skilling and office infrastructure.
·Social Welfare – Rs 5.29 crore for departmental infrastructure.
·Women Resources – Rs 4.30 crore for Transformative Livelihood Intervention project.
·General Services – Rs 22.10 crore including Fire & Emergency Services (Rs 10.50 crore), Nagaland Legislative Assembly (Rs 7 crore), ATI (Rs 1.80 crore), Printing & Stationery (Rs 2.80 crore).
·Treasuries & Accounts – Rs 4 crore for office-cum-staff quarters.
·Parliamentary Affairs – Rs 2.20 crore
·Taxes Department – Rs 4.30 crore.
·Village Guards – Rs 5.56 crore for 18 barracks.
· Border Affairs – Rs 2 crore
· Election Department – Rs 4.01 cr
· NSDMA (Home) – Rs 3.50 crore for disaster response tech, HAM radio stations;
· Rs 1.20 crore for up gradation of Nagaland house in RK Puram and salt lake.
· Tribal Affairs – Rs 5.60 crore for directorate, staff quarters, and Tribal Arena at Kisama.
· Minority Affairs – Rs 4.50 crore for directorate, women marketing outlets and Holy Land Tour.
· State Lotteries – Rs 1 crore for construction of new directorate building at New Capital Complex, Thizama, Kohima.
Grant for FNTA
Rs 100.57 crore has been allocated as Grants to FNTA, which is the proportional allocation of the total divisible pool of the State development fund after netting out the State-wide obligations including the non-transferred Departments.
Nagaland Budget 2026-27: Focus on Fiscal Discipline, Revenue Realization, and Development Initiatives
Chief Minister, Dr. Neiphiu Rio presented the State Budget for the financial year 2026-27, highlighting fiscal consolidation, improved revenue collection, and targeted developmental ninterventions aimed at strengthening local economies, empowering youth, and promoting sustainable growth.
The State emphasized that while committed to welfare delivery, non-payment of user charges for essential services like electricity and water imposes a growing fiscal burden. Departments have been tasked with setting realistic revenue targets, eliminating leakages, and ensuring timely remittance of collections to the State Treasury. Citizens, taxpayers, and officials are urged to discharge dues promptly and transparently, which is expected to enhance fiscal efficiency, reduce borrowing, and curb the fiscal deficit.
Fiscal Performance and Budget Estimates
The State’s fiscal health has improved significantly, with the closing deficit for 2025-26 now estimated at Rs 411.81 crore, down from the earlier projection of Rs 843.21 crore.
For 2026-27, the Budget estimates gross receipts at Rs 22,507.10 crore and gross expenditure at Rs 22,127.33 crore. The breakdown is as follows:
Receipts (Rs in crore)
· State’s Own Tax & Non-Tax Revenue: 2,714.44
· State’s Share in Central Taxes: 7,341.28
· Central Assistance (Grants & Loans): 9,471.08
· Internal Debt: 2,978.77
· Recovery of Loans & Advances: 1.53
· Total: 22,507.10
Expenditure (Rs in crore)
· Non-Development (excluding debt servicing): 13,337.51
· Debt Servicing (including WMA repayment): 2,618.74
· Development Expenditure (including CSS, etc.): 6,171.08
Total: 22,127.33
The Budget projects a net surplus of Rs 74.77 crore, but accounting for the negative opening balance of Rs 411.81 crore, the year is expected to close with a net deficit of Rs 337.04 crore.
Government Vision and Priorities
The government reiterated its commitment to ensuring that every rupee of public expenditure generates measurable social and economic impact. Emphasis will be placed on:
· Strengthening local economies and enhancing livelihood opportunities.
· Creating employment and entrepreneurial opportunities for youth and women.
· Promoting sustainable and inclusive development across sectors.
· Ensuring fiscal stability while advancing Nagaland’s long-term growth trajectory.
The Budget aligns with the State’s broader goal of contributing to a developed India by 2047, focusing on balanced development, fiscal prudence, and creating a resilient and inclusive society.
(DIPR)
