Nagaland Budget 2026-27 Charts Path to 'Developed Nagaland by 2047'

After presenting the budget for the ensuing financial year (2026-27) during the Phase-II of the 8th session of the Nagaland Assembly, the Chief Minister explained that the delay in its presentation was due to the discontinuation of Revenue Deficit Grants (RDG) for the period 2026-2031.

He also cited a reduction in Nagaland's share of central taxes from 0.569 per cent to 0.481 per cent, as recommended by the 16th Finance Commission.

The Chief Minister stated that the state government plans to spend Rs 1,350 crore on development, reflecting a 12.5 per cent increase from the current year's Rs 1,200 crore.

He noted that the social sector has received the highest allocation at 18 per cent.

Among the key allocations are Rs 100.57 crore for the Frontier Nagaland Territorial Authority (FNTA), Rs 62 crore for 17 budget initiatives, and Rs 250 crore as the state's share for Centrally Sponsored Schemes (CSS).

Highlighting progress in fiscal consolidation, Rio pointed to a positive trend in the state's finances.

"As per Revised Estimates (RE) for 2025-26, the closing deficit was Rs 411.81 crore, reflecting an improvement of Rs 431.39 crore, largely due to reduced expenditure," he told the media after presenting the budget.

He further stated that the Budget Estimates (BE) for 2026-27 project the deficit to decline further to Rs 337.04 crore, marking an additional improvement of Rs 74.77 crore.

Rio also informed that the government remains committed to implementing the provisions of the Memorandum of Agreement (MoA) signed on February 5, 2026, between the Centre, the state government, and the Eastern Nagaland Peoples' Organisation for the creation of the FNTA.

In this regard, the Frontier Nagaland Territorial Authority Bill, 2026 has been drafted by the Law and Justice Department and is expected to be passed during the ongoing Assembly session.

The Chief Minister said that Union Home Minister Amit Shah has expressed a desire to inaugurate the FNTA by April 2026, and the state government is making all efforts to meet this timeline.

"The agreement will pave the way for the creation of FNTA for six Nagaland districts - Tuensang, Mon, Kiphire, Longleng, Noklak and Shamator -- and the devolution of powers in respect of 46 subjects to the FNTA," an official statement had earlier said.

Since 2010, the ENPO has been agitating for a separate 'Frontier Nagaland Territory' or a separate state comprising six eastern Nagaland districts inhabited by seven backward tribes -- Chang, Khiamniungan, Konyak, Phom, Tikhir, Sangtam and Yimkhiung.

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 Members of Parliament.

He noted that a sub-committee under his chairmanship is intensifying efforts further. He also informed that following a meeting with the Union Home Minister on February 5, 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.

According to the state's projections submitted to the 16th Finance Commission, the pre-devolution revenue gap was estimated at Rs 8,113.70 crore.

"Following a positive assurance from Finance Minister Nirmala Sitharaman during a meeting on February 4, the government proceeded with a full budget, anticipating a minimum of Rs 4,500 crore in grants in lieu of RDG," Rio said.

He added that the state's own revenue generation is showing an upward trend compared to the BE of 2025-26. Tax revenue is projected to increase by 10.52 per cent (Rs 197.75 crore), while non-tax revenue is expected to grow by 7.5 per cent (Rs 44.56 crore).

- IANS