KOHIMA: Nagaland Chief Minister Neiphiu Rio said that the Union Home Minister had expressed a desire to inaugurate the Frontier Nagaland Territorial Authority (FNTA) by April 2026. Rio also said that the Nagaland state government is making all efforts to meet this timeline.
Neiphiu Rio said this while talking to media persons at the Nagaland Legislative Assembly Secretariat in Kohima on Thursday after presenting the Budget for 2026-2027 during the Phase-II of the Eighth Session of the 14th NLA.
Neiphiu Rio then said that the Nagaland government “remains committed to implementing the provisions of the Memorandum of Agreement (MoA) signed on February 5, 2026, between the Government of India, the Nagaland State Government and Eastern Nagaland People’s Organisation (ENPO) for the creation of Frontier Nagaland Territorial Authority (FNTA). In this regard, the Frontier Nagaland Territorial Authority Bill, 2026 has been drafted by the Law and Justice Department and is expected to be passed during the ongoing session of the assembly, Rio added. He further said that the Union Home Minister has expressed a desire to inaugurate the FNTA by April 2026, and the state government is making all efforts to meet this timeline.
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Talking on the budget, Neiphiu Rio then stated that the Budget 2026–27 serves as a roadmap for inclusive, sustainable, and growth-oriented development, aligned with the vision of a developed Nagaland by 2047.
Rio explained that the delay in presenting the budget was due to the discontinuation of Revenue Deficit Grants (RDG) for the period 2026–2031, along with a reduction in Nagaland’s share of central taxes from 0.569% to 0.481%, as recommended by the 16th Finance Commission.
According to the State’s projections submitted to the Commission, the pre-devolution revenue gap was estimated at Rs 8,113.70 crore. Following a positive assurance from the Finance Minister during a meeting on February 4, 2026, the government proceeded with a full budget, anticipating a minimum of Rs 4,500 crore in grants in lieu of RDG.
He noted that the State’s own revenue generation is showing an upward trend compared to the Budget Estimates (BE) of 2025–26. Tax Revenue is projected to increase by 10.52% (Rs 197.75 crore), while Non-Tax Revenue is expected to grow by 7.5% (Rs 44.56 crore).
The Chief Minister further stated that the State government plans to spend Rs 1,350 crore on development, reflecting a 12.5% increase from the previous year’s Rs 1,200 crore. He noted that the social sector has received the highest allocation at 18%. Among the Key allocations are Rs 100.57 crore for FNTA, Rs 62 crore for 17 budget initiatives, and ₹250 crore as the state’s share for CSS.
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Highlighting progress in fiscal consolidation, he noted a positive trend in the State’s finances. As per Revised Estimates (RE) for 2025–26 the closing deficit was Rs 411.81 crore, reflecting an improvement of Rs 431.39 crore, largely due to reduced expenditure. He further stated that the Budget Estimates (BE) for 2026–27 projected the deficit to decline further to Rs 337.04 crore, marking an additional improvement of Rs 74.77 crore.