State's own revenue increasing, revenue gap grant from
Centre coming down
KOHIMA — Chief
Minister Neiphiu Rio, who holds the portfolio of Finance also, projected an
estimated deficit budget of INR 843.21 crore for the financial year 2025-2026.
However, Rio also presented an improved estimate of INR
62.57 crore against the closing deficit projection of INR 905.78 crore for
2024-25 he had presented in the last budget session.
Addressing a press conference after the budget presentation,
he said that the revenue gap grant from the Centre is coming down, but the
state’s own revenue is increasing. The state budget has been increased by 18%.
The projection was INR 905.78 crore, but it could close at
INR 843.21 crore, he said while expressing confidence that the deficit will
reduce in the coming years. The reduced deficit is also due to the increased
receipts in the share of Central Taxes and Duties and Own Revenues.
The estimated gross receipts have been projected at INR
24,849.01 crore and gross expenditure at INR 24,699.01 crore for the financial
year 2025-2026.
The gross receipts and expenditures during the year
2025-2026 are estimated to be equal. However, due to the negative opening
balance of INR 905.78 crore, it is estimated to close with a negative balance.
The year 2024-25 saw an increase of INR 162.07 crore (Tax
Revenue INR 4.70 crore & Non-Tax Revenue INR 157.70 crore). For the coming
year, INR 91.99 crore increase is expected in Own Tax Revenue and INR 130.20
crore in Own Non-Tax Revenue.
The estimated gross receipts are being categorised as the
state's own tax and non-tax revenue at INR 2,472.13 cr., the state's own share
in central taxes at INR 8,093.70 crore, central assistance (grants and loans)
at INR 8,216.25 crore, internal debt (including WMA from RBI) at INR 6,065.41
crore, and recovery of loans and advances by state government at INR 1.52
crore.
Expenditure estimate is categorised as non-developmental
expenditure (INR 12,949.72 crore), servicing of debt (including repayment of
WMA) (INR 5,930.05 crore), and development expenditure (including CSS) (INR
5,819.24 crore).
For the sector-wise allocations, an outlay of INR 1200 crore
has been projected. The Agri & Allied Sector gets INR 69.54 crore, Rural
Development gets INR 40.95 crore, Special Area Programme—INR 159.30 crore,
Irrigation/Water Resources—INR 6.46 crore, Energy Sector—INR 37.29 crore,
Industries & Minerals—INR 23.02 crore, Transport—INR 85.06 crore, Science
& Technology—INR 6.58 crore, General Economic Services—INR 301.92 crore,
Social Services—INR 256.02 crore, General Services & Others—INR 72.51 crore,
State share Pool to CSS, NEC & NLCPR—INR 141.35 crore.
The state government has introduced ten new initiatives for
the financial year 2025-26 aimed at skilling youth, improving the state
transport, restoring age-old tradition, and the solar power mission, among
others.
Under the Nagaland Skill Mission, 5,000 youth will be
trained in self-employment and private-sector employment, with entrepreneurship
linked to CMMFI. This will be done in a one-year period, with a special focus
on emerging industries such as hospitality, tourism, healthcare, logistics, and
skilled trades, especially in the construction sector (plumbing, electrician,
mason, heavy machinery operators, etc.).
To ensure effective implementation, credible training
partners (TPs) across the country with at least 50% placement assurance are
being identified. For aspiring trainees in need of financial resources,
specialised skill loans are being mobilised. INR 5 crore has been allocated for
this initiative.
The tourism sector is a major employment generator, with
government investments in homestays, tour guide training, and tourism-linked
infrastructure. The new state scheme will also provide concessional loans to
support 500 home stays and 200 transport units under CMMFI.
Living Morung Initiative
The Living Morung initiative will re-establish
morung-inspired cultural hubs, where intergenerational learning, skill
training, and heritage conservation can take place, ensuring that traditional
wisdom is passed down to future generations.
With INR 5 crore allocated, the initiative will be anchored
within the department of Art & Culture, working with tribal councils and
elders to preserve and adapt Naga heritage for future generations.
Solar Power Mission
To address Nagaland’s energy deficit, the State Solar Power
Mission aligns with PM Surya Ghar: Muft Bijli Yojana (Solar Rooftop Power
Generation Mission). The GoI subsidy of INR 33,000 per kW (up to 2 kW) and INR
19,800 per additional kW is complemented by a state subsidy of INR 20,000 per
kW, capped at INR 50,000 per beneficiary.
The mission will mobilise banks for solar rooftop loans,
ensuring affordability. With INR 10 crore allocated, the initiative aims to
enhance energy security while reducing long-term power costs for consumers.
Speaking on the revenue loss in the power sector, Rio said
the state is facing nearly INR 300 crore worth of power loss annually. In
2023-2024, purchase of power was INR 572.26 crore, and revenue collected was
INR 282.78 crore, resulting in revenue loss of INR 289 crore or 50.59%.
Drone training centre
The NGIS of Nagaland has been acknowledged as one of the
most competent drone centres in the country by the Prime Minister’s Economic
Advisory Council. The new drone training initiative builds on this and will provide
job-linked training programmes in collaboration with private partners for
employment-oriented certified training such as drone pilot, drone service
technician, drone software developer, drone survey master, and drone
surveillance master. INR 2.5 crore has been allocated for this initiative.
Expanding banking access
With 20 unbanked development blocks still lacking banking
services, the government will support infrastructure development for approach
roads and pucca buildings to facilitate long-term leasing to banks. Further, to
give an impetus to financial inclusion, wherever a bank opens a branch in an
unbanked block, the government will facilitate that all possible government
transactions in that block will be routed through the bank.
Capacity building of local bodies
The initiative will provide structured training for
municipal bodies, village councils, and government officers in resource
mobilisation, policy formulation, financial management, and digital governance.
INR 2 crore has been allocated in the budget for this initiative.
Chief Minister’s Fellowship Programme
To nurture future leaders and policy innovators, the
government is launching the Chief Minister’s Fellowship Programme, with an
allocation of INR 2.50 crore, aimed at developing a cadre of highly skilled
professionals equipped with a deep understanding of Nagaland’s development
priorities.
RFID-based e-way bill processing
To streamline trade, tax compliance, and logistics,
RFID-based e-way bill tracking will replace manual inspections, reducing delays
and revenue leakages. Integrated with GST and transport databases, this system
will ensure real-time tracking and automated clearance, creating a
business-friendly, efficient trade environment while improving tax compliance.
INR 2 crore has been allocated for this initiative in this budget.
Improving NST
The state government will initiate the introduction of a
fleet of over 40 buses to the Nagaland State Transport (NST) this year. INR
2.50 crore has been allocated to NST to upgrade essential amenities, ensuring
quality facilities at five priority NST stations to begin with. The amenities
will include drinking water, waiting areas, locker rooms, and quality toilet
facilities.
Fast-track development in border areas
To fast-track the developmental needs of villages in the
interstate border areas, a new initiative is taken by the government in the
current budget with an allocation of INR 15 crore. This initiative will focus
on creation of vital amenities such as buildings, roads, power, and water
supply.
