Nagaland Chief Minister Neiphiu Rio on Thursday presented the Nagaland Budget for 2026–27 in the Legislative Assembly, allocating Rs 1,350 crore for development expenditure and Rs 100 crore for the proposed Frontier Nagaland Territorial Authority (FNTA), while outlining a roadmap for inclusive and sustainable growth.
Presenting the budget during Phase II of the 8th session of the Assembly, the Chief Minister described it as aligned with the state’s long-term vision of achieving a “Developed Nagaland by 2047”.
Rio said the delay in presenting the budget was due to two key fiscal changes, the discontinuation of Revenue Deficit Grants (RDG) for the 2026–2031 period and a reduction in Nagaland’s share of central taxes from 0.569 per cent to 0.481 per cent, following the recommendations of the 16th Finance Commission. He noted that these changes have impacted the state’s revenue projections.
The government has proposed a development outlay of Rs 1,350 crore for 2026–27, marking a 12.5 per cent increase from Rs 1,200 crore in the current financial year. The social sector has received the highest allocation at 18 per cent, reflecting the government’s emphasis on people-centric development.
Among other allocations, Rs 100.57 crore has been earmarked for the Frontier Nagaland Territorial Authority, Rs 62 crore for 17 specific budget initiatives, and Rs 250 crore as the state’s share for Centrally Sponsored Schemes.
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The proposed FNTA remains a key political component of the budget. The FNTA Bill, 2026, drafted by the Law and Justice Department, is expected to be taken up during the ongoing Assembly session.
The authority is based on a Memorandum of Agreement signed on February 5, 2026, between the Centre, the Nagaland government, and the Eastern Nagaland Peoples’ Organisation (ENPO).
Union Home Minister Amit Shah has indicated his intent to inaugurate the authority by April 2026. Rio said the state government is working to meet the timeline.
Once constituted, the FNTA will cover six districts, Tuensang, Mon, Kiphire, Longleng, Noklak, and Shamator, and will have powers devolved across 46 subjects. The ENPO has been demanding a separate ‘Frontier Nagaland Territory’ or full statehood since 2010, representing several tribes in eastern Nagaland.
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