Centre allocates INR 3,880 crore to Nagaland under Pride of Hills scheme to boost development and support hill states.
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KOHIMA — The Centre has allocated INR 3,880 crore for Nagaland under ‘Pride of Hills’, a special development assistance component of the Special Assistance to States for Capital Investment (SASCI) for the 2026–27 financial year.
An outlay of INR 25,000 crore has been earmarked for nine hill states under the SASCI scheme for 2026–27. These include Nagaland, Tripura, Arunachal Pradesh, Manipur, Meghalaya, Sikkim, Mizoram, Himachal Pradesh and Uttarakhand.
Chief Minister Neiphiu Rio expressed gratitude to the prime minister and the Union finance minister, stating that the allocation would help accelerate development and address the unique challenges faced by hill states.
According to the scheme’s objectives note, the hill states face distinct financial and developmental constraints due to difficult terrain, inaccessibility, low population density and limited revenue-generating capacity, making them more dependent on central assistance.
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It further highlighted that these states exhibit weaker fiscal indicators, including high debt-to-GSDP ratios, a relatively low own tax revenue (OTR) base, and higher dependence on central transfers.
To address these challenges, the Centre has provided additional outlay under this component, over and above allocations made under other parts of SASCI 2026–27, aimed at boosting capital expenditure and supporting committed liabilities.