The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman on Saturday, has sparked varied reactions across the North Eastern Region (NER). While the overall allocation for the region has witnessed a modest increase, critics argue that it may not be enough to address the region’s specific challenges.
Increase in budget allocation for DoNER and NEC
The Ministry of Development for the Northeastern Region (DoNER) received an increase in its allocation to Rs 5915 crore from Rs 5900 crore in the previous fiscal year, marking a 0.25% rise. The funds under DoNER will be utilized for development schemes, infrastructure projects, and regional development efforts across the eight states of the NER and Sikkim. However, the increase has been labeled insufficient by some political leaders.
Former MP and senior Congress leader Abdul Khaleque criticized the allocation, calling it “a mere eyewash” and accused the BJP-led government of neglecting the region’s needs. Khaleque stated, “The ministry only focuses on tribal areas, with little emphasis on broader regional development.”
Similarly, allocations for the North Eastern Council (NEC) saw a slight increase from Rs 820 crore to Rs 822 crore, aimed at ensuring the integrated development of the NER. The NEC supports key sectors such as bamboo, piggery, regional tourism, higher education, and telemedicine in the region.
Funding for Infrastructure Projects Under NESIDS and PM-DevINE
Despite the increases in some areas, the North East Special Infrastructure Development Scheme (NESIDS) experienced a reduction in its budget, with allocations falling from Rs 2491 crore to Rs 2481 crore. This cut has raised concerns about the future of infrastructure projects like water supply, connectivity, and tourism development, which are crucial for the region’s economic growth.
On a more positive note, the Prime Minister’s Development Initiative for North East Region (PM-DevINE) received a slight budget increase from Rs 2200 crore to Rs 2296 crore. This initiative is seen as vital for improving infrastructure and addressing socio-economic disparities in the NER.
Reactions from the Chief Ministers of the region
Regional leaders have expressed varying reactions to the budget, particularly with regard to specific development initiatives. Assam’s Chief Minister Himanta Biswa Sarma called the Union Budget “historic” for Assam, pointing to the announcement of a 12.7 lakh metric tonne urea plant in Namrup, Dibrugarh, as a game changer for the state’s agricultural sector. Sarma also expressed confidence that the plant would help Assam achieve self-sufficiency in fertilizer production and optimize natural gas resources.
Nagaland Chief Minister Neiphiu Rio has congratulated Union Finance Minister Nirmala Sitharaman for presenting the historic 8th consecutive Union Budget for 2025. In a social media post, Rio praised the government’s focus on inclusive growth and empowerment, highlighting its emphasis on farmers, rural development, regional connectivity, and women entrepreneurs from SC/ST communities.
Meghalaya Chief Minister Conrad K. Sangma lauded the modified UDAN scheme, which aims to enhance regional connectivity, including through helipads and smaller airports in hilly, aspirational districts. This, he said, would improve accessibility, boost tourism, and contribute to economic growth.
In Tripura, Finance Minister Pranajit Singha Roy praised the budget for its focus on agriculture and MSMEs. He noted that nearly 60% of Tripura’s population is engaged in agriculture, and the budget’s provisions would directly benefit the state’s farming community. Singha Roy also highlighted the increased allocations for health, education, and social sectors, which he believes would support the development of Tripura’s economy.
Other noteworthy allocations: Agriculture, Health, and Infrastructure
The Department of Agriculture and Farmers Welfare has also raised its allocation for the NER to Rs 13394.46 crore, up from Rs 12122.24 crore in the previous fiscal year. Similarly, the Ministry of Health and Family Welfare has increased its budget to Rs 7300.70 crore from Rs 6697.54 crore, a move welcomed by regional leaders who have long called for better healthcare infrastructure in the region.
However, the reduction in the Bodoland Territorial Council’s (BTC) allocation, from Rs 174.66 crore to Rs 50 crore, has raised concerns. While allocations for other autonomous councils such as Dima Hasao Autonomous Council (DHATC) saw an increase, the drastic cut for BTC has led to apprehensions about the future of development in the Bodoland area.