SATURDAY, MAY 03, 2025
Chief Minister Neiphiu Rio presents budget for 2025-26; deficit projected at INR 843 crore
Published on Mar 6, 2025
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- State's own revenue increasing, revenue gap grant from Centre coming down
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- 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.
- New Initiatives
- 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.
Nagaland Districts
