Mokokchung, 26th March, 2026 (www.nokinketer.in): Chief Minister, Dr. Neiphiu Rio, held a press briefing at the Nagaland Legislative Assembly Secretariat, Kohima after presenting the Budget for 2026-2027 during the Phase-II of the Eighth Session of the 14th  NLA on March 26, 2026. Addressing the media, he stated that Budget 2026–27 serves as a roadmap for Inclusive, Sustainable, and Growth-Oriented Development, aligned with the vision of a Developed Nagaland by 2047.

            Dr. Rio explained that the delay in presenting the budget was due to the discontinuation of Revenue Deficit Grants (RDG) for the period 2026–2031, along with a reduction in Nagaland’s share of central taxes from 0.569% to 0.481%, as recommended by the 16th Finance Commission.

            According to the State’s projections submitted to the Commission, the pre-devolution revenue gap was estimated at ₹8,113.70 crore. Following a positive assurance from the Finance Minister during a meeting on February 4, 2026, the government proceeded with a full budget, anticipating a minimum of ₹4,500 crore in grants in lieu of RDG.
He noted that the State’s own revenue generation is showing an upward trend compared to the Budget Estimates (BE) of 2025–26. Tax Revenue is projected to increase by 10.52% (₹197.75 crore), while Non-Tax Revenue is expected to grow by 7.5% (₹44.56 crore).

            The Chief Minister further stated that the State government plans to spend ₹1,350 crore on development, reflecting a 12.5% increase from the previous year’s ₹1,200 crore. He noted that the social sector has received the highest allocation at 18%. Among the Key allocations are ₹100.57 crore for FNTA, ₹62 crore for 17 budget initiatives, and ₹250 crore as the State’s share for CSS.

            Highlighting progress in fiscal consolidation, he noted a positive trend in the State’s finances. As per Revised Estimates (RE) for 2025–26 the closing deficit was ₹411.81 crore, reflecting an improvement of ₹431.39 crore, largely due to reduced expenditure. He further stated that the Budget Estimates (BE) for 2026–27 project the deficit to decline further to ₹337.04 crore, marking an additional improvement of ₹74.77 crore.

            He also informed that the government remains committed to implementing the provisions of the Memorandum of Agreement (MoA) signed on February 5, 2026, between the Government of India, the State Government, and ENPO for the creation of Frontier Nagaland Territorial Authority (FNTA). In this regard, Frontier Nagaland Territorial Authority Bill, 2026 has been drafted by the Law and Justice Department and is expected to be passed during the ongoing session of the Assembly. He added that the Union Home Minister has expressed a desire to inaugurate the FNTA by April 2026, and the State Government is making all efforts to meet this timeline.