Nagaland Budget 2025-26: Rs 24,849 Crore Outlay Targets Development and Innovation

Nagaland Budget 2025-26: The Nagaland government today unveiled its Budget for the financial year 2025-26, projecting a total outlay of Rs 24,849 crore. Presented during the 6th Session of the 14th Nagaland Legislative Assembly, the budget reflects the state’s commitment to fostering development, improving civic amenities, and embracing technological innovation, while addressing an accumulated deficit pegged at Rs 843.21 crore.

Major Allocations and Initiatives

The budget prioritizes key sectors such as skill development, tourism, technology, and infrastructure, with significant funds allocated to support these areas:

Skill Development: Rs 5 crore has been earmarked for the Nagaland Skill Mission, which aims to train 5,000 youth to boost employability and address unemployment in the state.

Technology: Rs 3.86 crore is allocated to establish an Artificial Intelligence (AI) research center, signaling Nagaland’s intent to embrace cutting-edge technology for sustainable growth.

Renewable Energy: The Nagaland Solar Power Mission receives Rs 10 crore, offering subsidies of up to Rs 50,000 per consumer to promote solar energy adoption.

Infrastructure: A combined Rs 85 crore is set aside for road development, including Rs 55 crore for special road programs and Rs 30 crore for maintenance, highlighting efforts to improve connectivity.

The budget also introduces initiatives to bolster tourism and financial inclusion:

The Nagaland Tourism, Hospitality, and Transport Scheme will provide concessional loans to support 500 homestays and 200 tourist transport vehicles, aiming to enhance the state’s tourism appeal.

Financial inclusion efforts include support for 20 unbanked blocks and channeling government transactions through new banks to expand banking access.

Fiscal Challenges

While the budget outlines ambitious plans, it also sheds light on significant fiscal constraints. Nagaland faces an accumulated deficit of Rs 843.21 crore, an improvement from the previous year’s estimate of Rs 905.78 crore. However, the state remains heavily dependent on central funds, with its own revenue accounting for just 10% of total receipts.

Debt servicing continues to strain finances, with Rs 5,930.05 crore allocated for this purpose. The fiscal deficit is projected at approximately Rs 5,915.41 crore, underscoring the need for improved revenue generation and fiscal discipline.

Leadership Perspective

Chief Minister Neiphiu Rio highlighted the budget’s emphasis on skilling and employment as foundational to Nagaland’s progress. “From heritage to highways, from classrooms to careers—Nagaland moves forward,” he said. “This budget reflects our resolve to build a state that honors its past while embracing the future.”

Looking Ahead

The budget session began on March 3, 2025, with an address by Governor La Ganesan, and general debates are scheduled for March 7. These discussions will allow lawmakers to assess the budget’s impact and suggest refinements.

Nagaland’s 2025-26 budget positions the state as an aspiring leader in inclusive and innovative growth in Northeast India. By blending tradition with modernity—through investments in technology, skill development, and infrastructure—it aims to create a resilient and prosperous future for its people.

Key Highlights

• Total Budget Outlay: Rs 24,849 crore
• Major Allocations:
• Skill Development: Rs 5 crore
• AI Research Center: Rs 3.86 crore
• Solar Power: Rs 10 crore
• Infrastructure (Roads): Rs 85 crore

Key Initiatives: Nagaland Skill Mission, AI research center, Nagaland Solar Power Mission, tourism and financial inclusion schemes

Fiscal Challenges: Accumulated deficit of Rs 843.21 crore, reliance on central funds, significant debt servicing costs