Mizoram CM presents Rs 15,198 Cr budget, here are key highlights

AIZAWL-   Mizoram Chief Minister Lalduhoma on Tuesday presented a ₹15,198.76 crore budget for 2025-2026 and announced a 75% increase in fund allocation for the flagship ‘Bana Kaih’ (Handholding) scheme, a financial assistance programme for farmers and small entrepreneurs.

Overview of the Budget

The Mizoram Budget for 2025-26, tabled in the Mizoram Legislative Assembly, amounts to Rs 15,198.76 crore. This represents a 5.4% increase from the previous year’s allocation of Rs 14,412.12 crore, signaling a modest but strategic expansion in fiscal planning. Alongside the annual budget, supplementary demands for grants for the current fiscal year (2024-25) were presented, totaling Rs 3,512.33 crore. The budget avoids introducing new taxes, focusing instead on efficient resource allocation and revenue mobilization to support development goals aligned with the national vision of “Viksit Bharat” (Developed India) and “Viksit Mizoram” (Developed Mizoram).

Key Financial Highlights

1- Total Budget Outlay: Rs 15,198.76 crore

• Revenue Receipts and Capital Receipts: The total projected income includes Rs 2,616.33 crore from the state’s own tax and non-tax revenues, with the remaining Rs 10,331.28 crore expected from central transfers, including tax shares, revenue deficit grants, and other centrally sponsored schemes (CSS).
• Borrowings: An additional Rs 2,226.18 crore is planned through government loans, including interest-free loans under schemes like the Special Assistance to States for Capital Investment (SASCI).

2-Revenue Expenditure: Rs 12,540.20 crore

• This constitutes 82.51% of the total budget, reflecting a heavy reliance on operational costs such as salaries, pensions, and subsidies. It marks a 4.88% increase from the current fiscal year’s estimate of Rs 11,957 crore, indicating sustained investment in administrative and welfare functions.

3- Capital Expenditure:

• While exact figures for capital expenditure were not detailed in available sources, the budget emphasizes infrastructure development and flagship schemes, suggesting a significant portion is allocated to asset creation. Previous budgets (e.g., 2024-25) allocated around 28-30% for capital outlay, and a similar trend is likely maintained.

4- Revenue Surplus and Fiscal Deficit:

• The budget projects a revenue surplus of Rs 562.91 crore, indicating that revenue receipts exceed revenue expenditure, a sign of fiscal prudence.
• The fiscal deficit is estimated at Rs 1,651.68 crore, reflecting borrowings to fund capital projects while maintaining fiscal discipline.

5- Gross State Domestic Product (GSDP):

• The GSDP for 2025-26 is projected at Rs 36,088.82 crore, a 10.21% growth over the revised 2024-25 estimate of Rs 34,003.27 crore. Despite a downward revision from earlier projections, this growth rate underscores optimism for economic expansion.

Major Allocations and Schemes

1- Bana Kaih (Handholding) Scheme:

• Allocation: Rs 350 crore
• Details: This flagship program, aimed at supporting farmers and small entrepreneurs, received a 75% increase from the current fiscal year’s Rs 200 crore allocation. It provides financial assistance to foster sustainable livelihoods, reflecting the government’s priority on agriculture and micro-enterprises. The scheme is a cornerstone of the ZPM’s economic vision, emphasizing grassroots development.

2- Mizoram Universal Healthcare Scheme:

• Allocation: Rs 50 crore (up from Rs 20 crore)
• Details: Set to launch in April 2025, this scheme will offer health insurance coverage of up to Rs 5 lakh per year per beneficiary. The increased allocation addresses past healthcare liabilities (80% of outstanding bills cleared) and aims to enhance healthcare access, a critical need in the state.

3- Economic Services Sector:

• Allocation: Rs 3,518.37 crore (23.15% of total expenditure)
• Details: This sector includes agriculture, rural development, power, industries, and tourism, among others. The 7.27% increase from the current year’s Rs 3,279.96 crore highlights a focus on economic growth and job creation.

4- Special Assistance to States for Capital Investment (SASCI):

• Allocation: Rs 792.18 crore
• Details: This interest-free loan from the central government, repayable over 50 years, supports infrastructure projects, reducing the state’s financial burden for matching funds.

5- Local Bodies Funding:

• Rural Local Bodies: Rs 74 crore
• Urban Local Bodies: Rs 40 crore
• Details: Recommended by the Fifteenth Finance Commission, these funds strengthen grassroots governance and development.

Revenue Sources

1-State’s Own Revenue: Rs 2,616.33 crore

• Comprises tax revenues (e.g., from petroleum products via new cesses like Road Maintenance Cess and Social Infrastructure and Services Cess) and non-tax revenues. The government aims to boost collections through efficiency rather than new tax impositions.

2-Central Transfers: Rs 10,331.28 crore

• Share of Taxes: Rs 7,112.23 crore (0.5% of the central divisible pool of Rs 14,22,444.11 crore, a 16.61% increase from 2024-25).
• Post-Devolution Revenue Deficit Grant: Rs 586 crore (down from Rs 1,079 crore in 2024-25, per the Fifteenth Finance Commission’s declining trend).
• Centrally Sponsored Schemes (CSS): Rs 2,314.04 crore (a decrease of Rs 163.95 crore from 2024-25, due to reduced funding for schemes like Samagra Shiksha Abhiyan).

Policy Priorities and Reforms

1- Fiscal Consolidation:

• The budget emphasizes clearing past liabilities (over Rs 2,600 crore for K-deposits, D-III, GPF, and retirement benefits), ensuring timely fund releases, and maintaining a revenue surplus. This reflects a commitment to financial stability.

2- Social Welfare:

• Reforms in the Public Distribution System (PDS) reduce subsidies and rice wastage, while healthcare and the Bana Kaih scheme target vulnerable populations.

3-Administrative Efficiency:

• The Kai App, an administrative tool, aims to enhance government office discipline and efficiency, signaling a push for modern governance.

4-Economic Growth:

• Despite a lower GSDP projection, the 10.21% growth target aligns with national development goals. The government prioritizes centrally funded projects requiring minimal state contribution to maximize resources.

Supplementary Demands for 2024-25

• Amount: Rs 3,512.33 crore
• Purpose: These funds address additional expenditures for the current fiscal year, ensuring continuity of ongoing projects and obligations.

Context and Significance

Presented during the fourth session of the 9th Mizoram Legislative Assembly (resumed on March 04, 2025, after commencing on February 19), this budget reflects the ZPM government’s second year in office.

Chief Minister Lalduhoma, in a post-budget press conference, emphasized that the GSDP decline from earlier projections does not indicate economic stagnation but a recalibration for realistic planning.

The budget aligns Mizoram with India’s growth trajectory, leveraging central support while fostering self-reliance through schemes like Bana Kaih.

The Mizoram Budget 2025-26, with its Rs 15,198.76 crore outlay, balances fiscal discipline with social and economic development. Key investments in healthcare, agriculture, and infrastructure, coupled with a focus on flagship schemes and administrative reforms, position Mizoram for sustainable growth.

The absence of new taxes and reliance on central funds underscore a pragmatic approach to resource management, aiming for a “Viksit Mizoram” by 2026.