Nagaland Budget 2026-27: Rs 1,350 Crore for Development, FNTA Gets Rs 100 Crore Allocation

Kohima: Nagaland Chief Minister Neiphiu Rio on Thursday presented the state budget for 2026-27, describing it as a road map for inclusive, sustainable, and growth-oriented development — one aligned with the state's long-term vision of a 'Developed Nagaland by 2047.'

The budget was presented during Phase II of the 8th session of the Nagaland Legislative Assembly.

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Rio explained that the budget's delayed presentation was driven by two significant fiscal developments. First, Revenue Deficit Grants (RDG) have been discontinued for the 2026-2031 period. Second, Nagaland's share of central taxes has been reduced from 0.569 per cent to 0.481 per cent, as recommended by the 16th Finance Commission — a cut that has meaningfully affected the state's revenue projections.

The state government has planned a development expenditure of Rs 1,350 crore for 2026-27 — a 12.5 per cent increase over the current year's allocation of Rs 1,200 crore.

The social sector has received the highest allocation at 18 per cent of the budget, reflecting the government's stated priority of investing in people-centred development.

Other notable allocations include Rs 100.57 crore for the Frontier Nagaland Territorial Authority (FNTA), Rs 62 crore set aside for 17 specific budget initiatives, and Rs 250 crore as the state's share for Centrally Sponsored Schemes.

One of the most politically significant aspects of the budget is the allocation for the Frontier Nagaland Territorial Authority — and the accompanying legislative push to bring it into existence.

The FNTA Bill, 2026 has been drafted by the Law and Justice Department and is expected to be passed during the current Assembly session. The authority stems from a Memorandum of Agreement signed on February 5, 2026, between the Central government, the Nagaland state government, and the Eastern Nagaland Peoples' Organisation (ENPO).

Union Home Minister Amit Shah has expressed his desire to inaugurate the FNTA by April 2026, and Rio said the state government is making every effort to meet that deadline.

Once established, the FNTA will cover six eastern Nagaland districts — Tuensang, Mon, Kiphire, Longleng, Noklak, and Shamator — with powers devolved across 46 subjects.

The ENPO has been agitating for a separate 'Frontier Nagaland Territory' or a full separate state since 2010, representing seven tribes of eastern Nagaland — the Chang, Khiamniungan, Konyak, Phom, Tikhir, Sangtam, and Yimkhiung communities.

Reaffirming his government's commitment to resolving the broader Naga political issue, Rio highlighted the constitution of a Political Affairs Committee comprising ministers, tribal representatives, political parties, and Members of Parliament — signalling that the peace process remains an active priority alongside the state's development agenda.