Nagaland Chief Minister Neiphiu Rio presented the state budget for the 2026-27 fiscal year, emphasizing inclusive and sustainable development aligned with the vision of a ‘Developed Nagaland by 2047’. The delay in budget presentation was attributed to the discontinuation of Revenue Deficit Grants for 2026–2031.
Rio highlighted a decrease in Nagaland’s share of central taxes from 0.569% to 0.481% as per the 16th Finance Commission’s recommendation. The state plans to allocate Rs 1,350 crore for development in the upcoming year, reflecting a 12.5% increase from the current year.
The social sector received the highest allocation at 18%, with key allocations including funds for the Frontier Nagaland Territorial Authority (FNTA), budget initiatives, and the state’s share for Centrally Sponsored Schemes (CSS). Rio noted positive fiscal progress, with a reduced closing deficit in the Revised Estimates for 2025–26.
The Budget Estimates for 2026-27 project a further decline in the deficit, indicating improved financial management. Rio reaffirmed the government’s commitment to implementing the Memorandum of Agreement for the creation of the FNTA, with efforts to meet the timeline set by Union Home Minister Amit Shah.
