Nagaland to pursue Rs 4500 crore from centre

Chief Minister Dr Neiphiu Rio during the general discussion on the State Budget for 2026-27 on March 27. (DIPR Photo)

Hopeful of receiving assistance, says CM Rio

Morung Express News
Kohima | March 27

Highlighting a key concern, Chief Minister Dr Neiphiu Rio who also holds the portfolio of Finance revealed that the state had not received a revenue deficit grant under the 16th Finance Commission, prompting urgent engagements with the Union Finance Minister and Union Home Minister earlier this year. 

In his concluding remarks during the general discussion on the State Budget for 2026-27 on March 27, Dr Rio said, the state had appraised its “maximum and minimum requirements” to the Finance Minister and the Union Home Minister stressing that without adequate support, the state would struggle to meet essential obligations such as salaries, pensions and debt servicing. 

He informed the House about the telephonic conversation with the Union Finance Minister that the State government will go ahead with its projected requirement of Rs 4500 crore for the current fiscal year and plans to pursue further assistance from the Centre after the budget is passed with the hope that “we will receive.”

Addressing issues raised by members, the CM touched on a range of sectors. He reaffirmed the government’s commitment to gender-responsive budgeting and accountable public spending stating “it is the responsibility of all stakeholders to ensure public rupee spending is accountable and achievable to the intended measurable outcome.”

He also informed that sports initiatives would be expanded based on performance and emerging needs, and that the government will continue to support the youth in the field of sports.

On infrastructure, he acknowledged the urgent need to upgrade aging government buildings, noting that a significant portion of about 56% of the government residential building and approximately 43% of the government non-residential buildings state infrastructure is over 30 years old. However, he maintained that the state government is not in a position to take up upgradation with ‘our’ own resources while proposals for such upgrades have already been taken up with the Central Government.

The CM also responded to concerns about key road projects, including delays in the NH-29 Package-II (Kohima-Jessami road) pertaining to the stretch between Kohima and Pfutsero, stating that the project is under close monitoring despite setbacks with contractors. Dr Rio informed that the fiscal progress now stand at 40.45% and the financial progress is 37.07% and that the NHIDCL, he informed has extended the contract period up to December 31, 2026.

On the Trans-Nagaland Foothill Road, he said the state has already invested Rs 245.50 crore but emphasised the need for central funding to complete the project which is estimated to cost about Rs 9180 crore. After thorough deliberation, Rio said, the Ministry of Road, Transport and Highway will consider funding as a ‘National Highway’ if the state government can provide 30 metres Right of Way (RoW) free of cost and forest environment clearance. While forest clearance has been obtained, he said the 30 metres right of way could not be obtained.

“If our people want to develop our roads we have to make available and since this is not a national highway declared compensation formula is not there only some damage control can be compensated,” stated Dr Rio.

On governance reforms, he highlighted measures such as the implementation of the Personnel Information Management System (PIMS) implemented in 2016 and the E-Pay bill system in June 2011, ban on work-charge appointments and streamlining of appointment in Group C has led to steady and consistent decrease in the number of government employees in the state.

Between 2017-18 and 2024-25 the total number of government employees decreased from 1,11,805 to 1,03,793 reflecting an approximately seven per cent decline, the CM informed.

Also addressing the social challenges, including substance abuse, Rio informed that enforcement under the NDPS Act is ongoing while new initiative ‘Nagaland Community Wellbeing Initiative’ is launched to provide psychological support to affected individuals. 

On the Nagaland Liquor Total Prohibition Act, he said the government is reviewing the policy in a “balanced and consultative manner,” considering both enforcement challenges, the need for strengthening institutional capacity, public awareness, rehabilitation mechanisms and varied public opinions.

Touching on long-pending issues, Dr Rio reiterated efforts to revive oil and natural gas exploration in the state, informing the House of the ongoing discussions with the Centre to resolve policy and legal hurdles.

Looking ahead, the CM has informed the plans to establish Revenue and Development Fund Cell to identify innovative financing mechanisms, strengthen resource mobilisation, and support development financing strategies, while a Committee on Expenditure Rationalisation and Resource Mobilisation headed by him will examine suggestions raised by the Members and evaluated through this Committee.

Describing the 2026-27 budget as a “roadmap for developed Nagaland 2047” aligned with the vision of a Viksit Bharat 2047, the CM maintained that it focuses on strengthening human capital, expanding livelihood opportunities, investing in infrastructure and promoting inclusive growth.

Reaffirming the government’s commitment to transparency, efficiency and equitable development across all districts, the CM said the budget marks a transition towards a more resilient fiscal framework ensuring that implementation remains time-bound and impact-driven.

Meanwhile, he expressed gratitude to members of the House for their “constructive participation, valuable suggestions and insightful deliberations” which he said, reflected a shared commitment to Nagaland’s welfare and development. 



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