Chief Minister Dr Neiphiu Rio has stated that Nagaland’s closing deficit for the financial year 2024-25 is estimated to improve by Rs. 62.57 crore. Initially, the budget had projected a deficit of Rs 905.78 crore, but it is now expected to close at Rs. 843.21 crore.
Presenting the budget estimates for the financial year 2025-26, Dr Rio announced that the state’s total gross receipts are projected at Rs 24,849.01 crore, while the total gross expenditure is estimated at Rs 24,699.01 crore. The receipts include Rs 2,472.13 crore from the state’s own tax and non-tax revenue, Rs 8,093.70 crore as the state’s share in central taxes, and Rs 8,216.25 crore from central assistance, including grants and loans. Additionally, internal debt, including ways and means advances (WMA) from the Reserve Bank of India, is projected at Rs 6,065.41 crore, while recoveries from loans and advances by the state government are expected to contribute Rs 1.52 crore.
On the expenditure side, non-development expenditure is estimated at Rs 12,949.72 crore, while Rs 5,930.05 crore is earmarked for debt servicing, including the repayment of WMA. Development expenditure, including centrally sponsored schemes, is projected at Rs 5,819.24 crore.
Despite the gross receipts and expenditures being balanced for 2025-26, the state is expected to close the financial year with a negative balance of Rs 843.21 crore due to the carried-over deficit from previous years, highlighting the government’s efforts to manage state finances while ensuring funding for development and essential expenditures.