Nagaland State Budget 2025-26 Analysis
Revised EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Nagaland FY 2025-26
Nagaland State Budget 2025-26 Budget at a Glance
Total Receipts
Rs 17,017 crore
-5.6%
Total Expenditure
Rs 20,012 crore
-15.7%
Fiscal Deficit
6.7%
Rs 2,993 crore
Capital Expenditure
Rs 4,177 crore
+61.2%
Tax Revenue
Rs 1,950 crore
+9.1%
Interest Payments
Rs 950 crore
5% of expenditure
Nagaland Revenue Receipts 2025-26
Own tax revenue vs non-tax revenue breakdown
Nagaland Expenditure Breakdown 2025-26
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Nagaland 2025-26
The fiscal deficit for Nagaland in 2025-26 is 6.7% of GSDP (Rs 2,993 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 950 crore consume 4.7% of total expenditure.
Nagaland State Budget 2025-26 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 18,746 crore | 100% |
| 1. Revenue Receipts | Rs 17,017 crore | 90.8% |
| a. Own Tax Revenue | Rs 1,950 crore | 10.4% |
| b. Non-Tax Revenue | Rs 510 crore | 2.7% |
| B. Total Expenditure | Rs 20,012 crore | 100% |
| 1. Revenue Expenditure | Rs 17,128 crore | 85.6% |
| 2. Capital Expenditure | Rs 4,177 crore | 20.9% |
| of which: Interest Payments | Rs 950 crore | 4.7% |
| C. Fiscal Deficit | Rs 2,993 crore | 6.7% of GSDP |
Source: Nagaland State Budget Documents via PRS India. All figures in Indian Rupees.
Nagaland Department-wise Expenditure 2025-26
Top departments by allocation in Nagaland for 2025-26
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education | Rs 3,200 crore | Rs 250 crore | Rs 3,450 crore | 17.2% |
2. Rural Development | Rs 1,800 crore | Rs 400 crore | Rs 2,200 crore | 10.9% |
3. Health & Family Welfare | Rs 1,500 crore | Rs 300 crore | Rs 1,800 crore | 9.0% |
4. Police & Home | Rs 1,600 crore | Rs 150 crore | Rs 1,750 crore | 8.7% |
5. Public Works & Roads | Rs 900 crore | Rs 800 crore | Rs 1,700 crore | 8.5% |
6. Agriculture & Allied | Rs 900 crore | Rs 200 crore | Rs 1,100 crore | 5.5% |
7. Social Welfare | Rs 800 crore | Rs 100 crore | Rs 900 crore | 4.5% |
8. Energy | Rs 600 crore | Rs 180 crore | Rs 780 crore | 3.9% |
9. Water Supply & Sanitation | Rs 350 crore | Rs 300 crore | Rs 650 crore | 3.2% |
10. Urban Development | Rs 350 crore | Rs 200 crore | Rs 550 crore | 2.7% |
Nagaland Budget 2025-26 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 20,096 crore, 2% lower than 2024-25 revised estimates
- Revenue receipts at Rs 18,746 crore with own tax at just Rs 1,950 crore
- Revenue surplus of Rs 1,618 crore (3.6% of GSDP) โ stable current account
- Fiscal deficit at 3.0% of GSDP (Rs 1,350 crore), exactly at FRBM target
- Capital expenditure at Rs 2,968 crore focused on road connectivity
- Tribal self-governance under Article 371(A) shapes unique budgetary framework
- Naga political settlement uncertainty influences long-term fiscal planning
- Central transfers exceed 86% of total revenue โ highest dependency ratio in India
- Outstanding debt at Rs 16,800 crore, debt-to-GSDP at 37.3%
- Interest payments at Rs 950 crore โ manageable but debt ratio concerning
- Hornbill Festival tourism and cultural economy receive targeted support
- GSDP at Rs 45,020 crore โ among the smallest state economies nationally
Compare Nagaland Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 23,728 crore | Rs 20,012 crore |
| Revenue Receipts | โ | โ | โ | Rs 18,034 crore | Rs 17,017 crore |
| Capital Expenditure | โ | โ | โ | Rs 2,591 crore | Rs 4,177 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.0% | 6.7% |
| Own Tax Revenue | โ | โ | โ | Rs 1,787 crore | Rs 1,950 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Nagaland State Budget 2025-26
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.
Explore More
Compare Nagaland with other states
Side-by-side comparison of fiscal metrics across Indian states