AGARTALA: Seven Northeast Indian states have been allocated a combined sum of Rs. 17,620 crore under a new Union Budget scheme, “Pride of Hills,” introduced as Part-X of the Special Assistance to States for Capital Investment (SASCI) programme for 2026-27, in a move aimed at boosting capital expenditure in geographically and fiscally disadvantaged hill regions.
The scheme earmarks a total of Rs. 25,000 crore for nine hill states across the country, with the Northeast accounting for well over two-thirds of the overall outlay. The remaining Rs. 7,380 crore is shared between Himachal Pradesh and Uttarakhand.
Within the Northeast, Arunachal Pradesh leads with an allocation of Rs. 4,900 crore, the highest among all nine beneficiary states. Nagaland follows with Rs. 3,880 crore and Tripura with Rs. 3,450 crore. Manipur has been allocated Rs. 2,400 crore and Meghalaya Rs. 2,070 crore. Sikkim receives Rs. 820 crore. Mizoram, meanwhile, has been allocated Rs. 100 crore, a figure notably lower than the rest of the region’s share.
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According to the budget document, hill states typically carry high debt-to-GSDP ratios, a thin Own Tax Revenue base, and a heavier dependence on central transfers compared to other states. The “Pride of Hills” outlay is designed to address these structural weaknesses by enabling enhanced investment in capital expenditure and helping states meet committed liabilities. The allocation is provided over and above each state’s existing entitlement under other parts of SASCI 2026-27.
Arunachal Pradesh Chief Minister Pema Khandu acknowledged the announcement on his official Facebook page, thanking Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman.
“The allocation of Rs. 4,900 crore for Arunachal Pradesh will help us improve fiscal stability and invest further in creating revenue-generating assets,” he stated.
For the Northeast, a region long characterized by limited industrial activity, difficult connectivity, and narrow state revenues, the scale of the allocation under “Pride of Hills” represents one of the more direct fiscal interventions in recent budget cycles, directed specifically at the structural constraints that distinguish hill economies from the rest of the country.