Nagaland CM presents Rs 337.04-Cr deficit budget for 2026-27

Dimapur, Mar 27: Nagaland Chief Minister Neiphiu Rio, who also holds the Finance portfolio, presented a Rs 337.04-crore deficit Budget for 2026-27 during Phase II of the 8th session of the 14th Nagaland Legislative Assembly in Kohima on Thursday, highlighting fiscal consolidation, improved revenue collection, and targeted developmental interventions aimed at strengthening local economies, empowering youth, and promoting sustainable growth.

Presenting the Budget, Rio said that though it projected a net surplus of Rs 74.77 crore, the year is expected to close with a net deficit of Rs 337.04 crore due to the negative opening balance of Rs 411.81 crore.

He said the State’s fiscal health has improved significantly, with the closing deficit for 2025-26 now estimated at Rs 411.81 crore, down from the earlier projection of Rs 843.21 crore. For 2026-27, the Budget estimated gross receipts at Rs 22,507.10 crore and gross expenditure at Rs 22,127.33 crore.

Rio expressed concern over the 16th Finance Commission’s revised devolution formula, which reduces Nagaland’s share in Central taxes by about 15 per cent from 0.569 per cent to 0.481 per cent. As a result, the State is projected to receive Rs 7,341 crore in 2026-27, compared to Rs 8,684 crore under the previous formula.

He also flagged the adverse impact of the discontinuation of post-devolution revenue deficit grants. Referring to his meeting with Union Finance Minister Nirmala Sitharaman on February 4, Rio said the State had sought continued grants-in-aid to address an anticipated fiscal shortfall and safeguard Nagaland’s unique Constitutional status.

Emphasising the need of fiscal discipline, the Chief Minister mentioned concerns raised by Finance Commissions over high revenue expenditure, particularly on salaries.

He reiterated the Government’s commitment to fiscal consolidation through improved revenue generation, controlled expenditure, and deficit management, while ensuring sustained development.

Under the Budget, Rio announced a series of major new initiatives, focusing on governance reforms, women empowerment, social development, and economic growth, backed by targeted allocations and structural reforms.

For the first time, the State has introduced an SDG-linked budget framework, a gender budget statement, and outcome budgeting to strengthen accountability, monitoring, and outcome-based planning across departments under a “whole-of-government” approach.

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