Chief Minister Dr Neiphiu Rio presenting the Budget for the FY 2025-26 at the Sixth Session of te 14th Nagaland legislative Assembly at NLA Hall, Kohima on March 6 (DIPR)
Our Correspondent
Kohima | March 6
Nagaland Chief Minister, Neiphiu Rio, who also holds the finance portfolio, today presented the State Budget for the financial year 2025-26, with gross receipts estimated at Rs. 24,849.01 crore and gross expenditure at Rs. 24,699.01 crore.
While the gross receipts for 2025-26 are estimated at Rs. 24,849.01 crore and gross expenditure at Rs. 24,699.01 crore, resulting in a surplus of Rs. 150 crore, an outflow of Rs. 150 crore under the Public Account — funds the government manages on behalf of others (such as provident funds, small savings, and reserve funds) — offsets this surplus.
As a result, the Net Current Transactions balance stands at Rs. 0.00 (See table).
Despite matching receipts and expenditures, the year is projected to close with a negative balance of Rs. 843.21 crore due to the negative opening balance from the previous year.
In a positive trend, Dr. Rio stated that the closing deficit for the year 2024-25 is estimated to improve by Rs. 62.57 crore, closing at Rs. 843.21 crore, rather than the initial projection of Rs. 905.78 crore.
He further highlighted that the total developmental outlay, including Centrally Sponsored Schemes (CSS), is estimated at Rs. 5,819.24 crore for 2025-26, with the State’s own resources contributing Rs. 1,200 crore.
This is an increase of Rs. 190 crore, constituting a growth of 18.81% over the financial year 2024-25, he added.
“Our own tax and non-tax revenues contribute around 13% of the total revenue receipts. However, it is felt that there is room for increasing our tax revenue,” Dr. Rio highlighted, and urged all citizens to demand GST cash memos for transactions to enhance transparency and curb tax evasion.
“This simple step will help track revenue streams and prevent leakages,” he noted.
To further strengthen tax administration, a dedicated research wing within the State Taxes Department will analyze tax data, detect evasion patterns, and optimize revenue collection, he added.
Further, he informed that Radio Frequency Identification (RFID) reading posts will be installed along major inter-state routes to ensure e-way bill compliance.
Dr Rio also underscored that the CSS constitutes a substantial portion of the annual budget and called for timely implementation to ensure benefits to the people of the State.
To this end, the State has launched a digital platform — Nagaland eProposal System (NePS) — which will streamline the submission of proposals and ensure the timely release of funds, he stated.
The departments have been advised to be “implementation-ready” from the beginning of the financial year, he added.
Dr Rio also dwelt on how revenue loss in the power sector has made it increasingly challenging for the Government to ensure uninterrupted power supply, especially amid rising demand from households, businesses, and entrepreneurs, he said.
To address this, the State has initiated the installation of smart prepaid meters to enhance efficiency and accountability, he said.
The smart meters will also ensure efficient billing for the consumer, combined with an emergency credit facility, he added.
Major initiatives and announcements
Nagaland Skill Mission: To train 5000 youth in the FY 2025-26 in self- employment and private-sector employment, with entrepreneurships linked to CMMFI. 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.) Credible training partners (TPs) across the country with at least 50% placement assurance are being identified. Rs 5 Crore has been allocated for this initiative.
Nagaland Tourism, Hospitality and Transport Scheme: Concessional loans to entrepreneurs to set up 500 homestays and 200 tourist transport vehicles.
Living Morung Initiative: Anchored within the Department of Art & Culture, the initiative aims to revitalise and preserve traditional Naga culture and traditions, and integrating them with modern development and sustainable livelihoods. Rs 5 crore allocated
Nagaland State Solar Power Mission: State Solar Power Mission aligns with PM Surya Ghar: Muft Bijli Yojana (Solar Rooftop Power Generation Mission). The GoI subsidy of Rs 33,000 per kW (up to 2 kW) and Rs 19,800 per additional kW is complemented by a state subsidy of Rs 20,000 per kW, capped at Rs 50,000 per beneficiary.
Drone Training Centre: Rs. 2.50 crore earmarked for imitative to skill youth in drone operations through public private partnerships.
Artificial Intelligence and Research Centre: Rs 3.86 crore for IT&C Dept for the 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.
Capacity Building of Local Bodies & Public Servants: Aimed at enhancing governance efficiency, the initiative will provide structured training for municipal bodies, village councils, and government officers in resource mobilization, policy formulation, financial management, and digital governance. Rs 2 crore is allocated.
Chief Minister’s Fellowship Program: With an allocation of Rs 2.50 crore, it is 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 and Rs 2 crore has been allocated for this initiative.
Improving NST: 40 buses for Nagaland State Transport (NST) and additionally, Rs 2.50 crore has been allocated to upgrade essential amenities, ensuring quality facilities at five priority NST stations.
Fast Tracking Development in Interstate 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 Rs 15 crore.
