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Nagaland State Budget 2018-19 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Nagaland FY 2018-19

Nagaland State Budget 2018-19 Budget at a Glance

Total Receipts

Rs 8,500 crore

+13.3%

Total Expenditure

Rs 9,400 crore

+17.5%

Fiscal Deficit

3.9%

Rs 900 crore

Capital Expenditure

Rs 1,200 crore

+20.0%

Tax Revenue

Rs 1,200 crore

+20.0%

Interest Payments

Rs 700 crore

7% of expenditure

Nagaland Revenue Receipts 2018-19

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1,200 crore (34.3%)
Non-Tax Revenue
Rs 2,300 crore (65.7%)

Nagaland Expenditure Breakdown 2018-19

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 87.2%
Capital Expenditure 12.8%

Fiscal Deficit as % of GSDP — Nagaland 2018-19

The fiscal deficit for Nagaland in 2018-19 is 3.9% of GSDP (Rs 900 crore), reflecting the state's borrowing needs to fund development programmes.

States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Nagaland's deficit is above this threshold, driven by higher capital spending needs.

Interest payments at Rs 700 crore consume 7.4% of total expenditure.

Nagaland State Budget 2018-19 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 10,200 crore100%
1. Revenue ReceiptsRs 8,500 crore83.3%
a. Own Tax RevenueRs 1,200 crore11.8%
b. Non-Tax RevenueRs 2,300 crore22.5%
B. Total ExpenditureRs 9,400 crore100%
1. Revenue ExpenditureRs 8,200 crore87.2%
2. Capital ExpenditureRs 1,200 crore12.8%
of which: Interest PaymentsRs 700 crore7.4%
C. Fiscal DeficitRs 900 crore3.9% of GSDP

Source: Nagaland State Budget Documents via PRS India. All figures in Indian Rupees.

Nagaland Budget 2018-19 Analysis & Highlights

Key Highlights

  • Total expenditure jumps to Rs 9,400 crore, a 17.5% increase under the new NDPP-BJP coalition government
  • Revenue receipts at Rs 8,500 crore with own tax revenue at Rs 1,200 crore on strengthening GST collections
  • Revenue deficit narrows to Rs 300 crore as enhanced Central devolution improves the fiscal position
  • Fiscal deficit at 3.9% of GSDP (Rs 900 crore) widens sharply with Seventh Pay Commission implementation
  • Capital expenditure at Rs 1,200 crore continues the infrastructure expansion trajectory
  • Market borrowings surge to Rs 1,200 crore to fund pay commission costs and capital projects
  • Total outstanding debt reaches Rs 6,800 crore, debt-to-GSDP at 29.6%
  • Interest payments at Rs 700 crore climb as the borrowing programme expands
  • Non-tax revenue at Rs 2,300 crore driven by Central scheme disbursements and power royalties
  • GSDP grows to Rs 23,000 crore with construction and government services driving expansion
  • New government under Neiphiu Rio implements Seventh Pay Commission with fiscal implications
  • Primary deficit of Rs 200 crore indicates limited borrowing beyond investment requirements

Compare Nagaland Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2014-152015-162016-172017-182018-19
Total Expenditure———Rs 8,000 croreRs 9,400 crore
Revenue Receipts———Rs 7,500 croreRs 8,500 crore
Capital Expenditure———Rs 1,000 croreRs 1,200 crore
Fiscal Deficit (% GSDP)———2.5%3.9%
Own Tax Revenue———Rs 1,000 croreRs 1,200 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Nagaland State Budget 2018-19

The Nagaland state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.

Nagaland Revenue Sources

State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).

Fiscal Deficit and State Borrowing

Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.

Compare Nagaland with other states

Side-by-side comparison of fiscal metrics across Indian states