Nagaland Assembly passes INR 22,127 crore budget for 2026-27, with Rio outlining vision for Developed Nagaland aligned with 2047 goals.
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KOHIMA — The Nagaland Legislative Assembly on Friday passed the state budget for the financial year 2026–27, authorising the withdrawal of INR 22,127.33 crore from the Consolidated Fund, as the Eighth Session of the 14th House drew to a close.
The budget, presented by Chief Minister Neiphiu Rio on March 26, was taken up for discussion on the final day of the two-phase session and cleared after members reached a consensus on the demands for grants of various departments.
In his concluding remarks, Rio described the budget as a forward-looking roadmap aligned with the vision of ‘Developed Nagaland by 2047,’ in sync with the national goal of Viksit Bharat 2047. He, however, acknowledged the fiscal challenges confronting the state, particularly the absence of Revenue Deficit Grant support under the current Finance Commission cycle.
Stressing fiscal prudence, the chief minister said that the government has adopted a calibrated approach, prioritising essential services while continuing to invest in growth-oriented sectors. He maintained that the budget seeks to strike a balance between maintaining fiscal discipline and addressing developmental needs in a resource-constrained environment.
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Rio outlined that the government’s focus would remain on strengthening human capital, expanding livelihood opportunities, and investing in critical infrastructure. He said that special emphasis has been placed on youth skilling, women-led development, and community-driven institutions, which he described as long-standing pillars of Nagaland’s socio-economic framework.
The budget also integrates Sustainable Development Goals (SDG)-linked and gender-responsive approaches, aimed at ensuring that development outcomes are measurable, inclusive, and sustainable. Rio said that such frameworks would help align state policies with broader global and national development priorities.
Describing the budget as a step towards a more resilient fiscal architecture, he suggested that efficiency, transparency and accountability would guide public expenditure. He reminded that convergence across departments and a whole-of-government approach would be key to ensuring time-bound and impact-driven implementation of schemes.
“We have exercised prudent prioritisation to protect essential services while advancing growth-oriented investments,” Rio said, adding that the government intends to ensure that every rupee spent delivers tangible outcomes.
The chief minister also expressed hope that the outcome budget would reflect the objectives of gender-responsive planning and that funds would be utilised judiciously for their intended purposes.
Touching on infrastructure challenges, Rio admitted that the state continues to face constraints in upgrading ageing public assets, with a significant proportion of government buildings having crossed 30 years of age. He said that the government has been taking up the matter with the Centre, as the state’s limited fiscal capacity restricts large-scale infrastructure investments.
On key road projects, Rio informed that the Kohima–Jessami stretch of National Highway-29, being executed by the National Highways and Infrastructure Development Corporation Limited (NHIDCL), has seen slow progress due to contractor-related issues, although monitoring efforts have led to some improvement. He added that the state government would continue to extend support to ensure timely completion.
Regarding the Trans-Nagaland Highway (Foothill Road), he said that the state has already invested INR 245.50 crore but requires substantial central assistance for completion of the project, which is estimated to cost around INR 9,180 crore. Efforts are underway to meet conditions required for its consideration as a National Highway, including securing the required right of way.
Rio also highlighted administrative reforms, saying that measures such as the Personal Information Management System (PIMS) and the e-Pay Bill system have contributed to rationalising government employment. He said that the total number of state government employees has declined by around 7% over recent years, reflecting efforts to streamline expenditure.
On law enforcement, he said that the state continues to strengthen action under the NDPS Act, with multiple cases registered and arrests made in the past year, indicating ongoing efforts to combat drug-related offences.
He also referred to ongoing discussions with the Centre on resumption of oil and natural gas exploration in the state, noting that several issues, including policy concerns and stakeholder consultations, are yet to be resolved.