Nagaland CM presents State Budget 2026-27

•    Full budget hinges on Rs 4,500 crore ‘reassurance’ to offset fiscal shocks
•    Receipts Rs 22,507 crore; expenditure Rs 22,127 crore
•    Surplus Rs 74.77 crore to trim deficit to Rs 337.04 crore

Our Correspondent
Kohima | March 26

Nagaland Chief Minister Dr Neiphiu Rio, who is Minister-in-Charge of Finance, presented the Nagaland State Budget for the year 2026–27 at the 8th Session of the 14th Nagaland Legislative Assembly on March 26.

“This year’s Budget is inclusive, sustainable, growth-oriented strategic roadmap to Developed Nagaland@2047,” he said while addressing a press conference after presenting the state budget on the floor of the House.

CM Rio further clarified that the Budget was delayed due to two fiscal shocks following the 16th Finance Commission’s recommendations: discontinuation of Revenue Deficit Grants (2026–31) and a drop in Nagaland’s share of Central taxes from 0.569% to 0.481%.

He said that, as per the State’s projections to the 16th Finance Commission, the pre-devolution revenue gap would be Rs 8,113.70 crore.

CM Rio informed that he met Union Finance Minister Nirmala Sitharaman on February 4, 2026, and apprised her of the State’s concerns.

Following a “clear and reassuring concurrence” from the Union Finance Minister in this regard, the State is proceeding with a full budget by anticipating a minimum of Rs 4,500 crore in grants in lieu of the RDG, he added.

Own revenue shows upward trend
The State’s own revenue generation shows a positive trajectory over the previous year (BE 2025–26): (a) own tax revenue is projected to increase by 10.52% (Rs 197.75 crore), and (b) own non-tax revenue is also expected to grow by 7.5% (Rs 44.56 crore), he added. 

Regarding the share in Central taxes, the Union Government has provisioned Rs 7,341.28 crore as Nagaland’s share of Central taxes and duties for 2026–27, the CM highlighted. 

However, this reflects a decline of Rs 752.42 crore compared to the Budget Estimates of the previous year, he added. 

For 2026–27, the Development (State Programme) outlay has been fixed at Rs 1,350 crore, marking a 12.50% increase from the previous year’s allocation of Rs 1,200 crore.

Social sector gets highest share
The social sector receives the maximum allocation at 18%. Notable allocations include: (a) grants to the Frontier Nagaland Territorial Authority (FNTA) – Rs 100.57 crore; (b) budget initiatives – Rs 62.00 crore; and (c) State’s share for CSS – Rs 250 crore.

On the fiscal deficit, it is indicated at 3% of GSDP as per the recommendation of the 16th Finance Commission. The GSDP for 2026–27 is projected at Rs 48,500 crore, with a growth rate of 9.13%.

CM Rio stated that the Revised Estimate for 2025–26 shows a closing deficit of Rs 411.81 crore, an improvement of Rs 431.39 crore, made possible by contraction of expenditure.

The Budget Estimate for 2026–27 is projected to close at Rs 337.04 crore, an improvement of Rs 74.77 crore.

As against the earlier projection of Rs 843.21 crore in the Budget Estimates, it is now estimated to close at Rs 411.81 crore in the Revised Estimates.

As regards the Budget proposals, CM Rio stated, “I am estimating the gross receipts at Rs 22,507.10 crores and gross expenditure at Rs 22,127.33 crore for the financial year 2026-27.”

The gross receipts and expenditures for 2026–27 are estimated to result in a surplus of Rs 74.77 crore.

However, due to the negative opening balance of Rs 411.81 crore, the year is estimated to close with a negative balance of Rs 337.04 crore, he noted the budget speech.

Assures every rupee will count
Meanwhile, CM Rio said that the State Government is committed to ensuring that every rupee of public expenditure produces measurable social and economic impact.

This, he held, would strengthen the State’s long-term growth prospects while safeguarding fiscal stability.

“We aim to create new opportunities for our youth, strengthen our local economies and lay the foundation for a more resilient, inclusive, and sustainable development trajectory for Nagaland, central in realizing our common goal of a developed nation by 2047,” the CM asserted.