Kohima, Mar 27 (PTI) The Nagaland Assembly on Friday passed the state budget for 2026-27, authorising an expenditure of over Rs 22,127 crore from the consolidated fund of the state.
The budget was approved through the Nagaland Appropriation Bill, 2026, moved by Chief Minister Neiphiu Rio, who also holds the Finance portfolio. It authorises withdrawal of Rs 22,127.33 crore to meet government expenditure for the financial year ending March 31, 2027.
Of the total outlay, the bulk comprises revenue expenditure of about Rs 17,972.70 crore, while capital expenditure stands at approximately Rs 4,154.63 crore.
A significant portion of the budget is allocated towards pensions and retirement benefits, which alone account for Rs 3,928 crore.
Similarly, major allocations are seen in sectors such as civil police, school education, health, rural development and public works.
The budget also indicated substantial investment in capital-intensive sectors, including roads and bridges, power, water supply and urban development, although these remain constrained by limited fiscal space.
Key infrastructure heads such as roads, housing and power have received sizeable allocations, but largely depend on Central assistance for expansion.
The passage of the budget comes against the backdrop of financial challenges flagged by the government, particularly the absence of revenue deficit grants under the current Finance Commission cycle.
Earlier, replying to the general discussion on the budget, the chief minister had cautioned that the state may face difficulty in meeting obligations such as salaries, pensions and debt servicing without adequate support from the Centre.
He informed the House that the state has projected a minimum requirement of Rs 4,500 crore from the Centre for 2026–27 and expressed hope that the funds would be released following assurances from the Union Finance Minister.
The Appropriation Act, enacted under Articles 204 and 205 of the Constitution, authorises the state government to withdraw funds from the consolidated fund to meet both voted and charged expenditures for the year, thereby operationalising the budget for 2026–27.
The Assembly also passed three other appropriation bills related to the regularisation of past expenditures and supplementary demands.
The House approved by voice vote the Supplementary Demand for Grants for 2025-26, authorising an additional expenditure of Rs 5,366.15 crore to meet excess and unforeseen spending during the current financial year.
The supplementary budget was passed through the Nagaland Appropriation (No 3) Bill, 2026, moved by the chief minister, allowing withdrawal of the amount from the consolidated fund of the state to cover expenditures up to March 31.
An amount of Rs 1,97,95,00,000 for regularisation of excess expenditure for the year 2019-20, as recommended by the Public Accounts Committee of the Assembly in its 137th Report 2024-25, was also passed as Appropriation (No 2) Bill, 2026.
Appropriation (No 1) Bill was also passed to regularise excess expenditure for the year 2018-19 as recommended by the PAC in its 134th Report 2024-25.
The bills were moved by Rio and passed by voice vote.
Subsequently, Speaker Sharingain Longkumer, concluding all business of the House, announced the constitution of various Financial and Non-Financial Committees of the Assembly.
Acknowledging the legislators and senior bureaucrats for successfully transacting all the business of the seven-day-long budget session of the state, Longkumer adjourned the House sine die, saying the progress and transition of Nagaland towards a developed state along with a developed India by 2047 starts with the very well-conceived, inclusive and progressive budget for the state. PTI NBS NBS RG
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