Nagaland imposes vehicle procurement ban and 25% spending cuts across departments amid fiscal pressure and resource constraints
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KOHIMA — Nagaland government has imposed fresh austerity measures, including a ban on the procurement of vehicles from state resources and a 25% reduction in selected non-development expenditure across departments.
The measures were notified through an Office Memorandum issued by the Finance Department's Budget and Monitoring Cell on June 9. The expenditure rationalisation exercise was approved by the state cabinet on April 10, 2026.
According to the memorandum, all departments have been directed to absorb a 25% pro-rata cut under select expenditure heads in the Budget Estimates (BE) 2026-27.
The reduction applies to expenditure items such as motor vehicles, office expenses, travel expenses and maintenance.
The memorandum stated that there would be a "pro-rata cut of 25% in respect of items such as 'Motor Vehicles', 'Office Expenses', 'Travel Expenses' and 'Maintenance' for all Departments."
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It further directed that "all departments are to manage within the reduced amount and no liability shall be entertained."
The Finance department will issue detailed revised allocations separately.
In a separate directive, the government ordered a complete halt on the procurement of vehicles using state resources during the current financial year.
"Procurement of vehicles from State resources is hereby banned during current financial year until further orders," the memorandum stated.
According to the memorandum, the expenditure rationalisation measures were necessitated by a constrained fiscal environment arising from the recommendations of the Sixteenth Finance Commission and the resultant pressure on the state's resource position.
The memorandum stated that the measures have come into force with immediate effect and are to be complied with strictly by all departments.