Aizawl: The Mizoram government has presented a ₹15,198.76 crore budget for the fiscal year 2025-26, emphasizing economic growth, social welfare, and infrastructure development. Chief Minister Lalduhoma, who also holds the finance portfolio, announced the budget in the state assembly, highlighting a 75% increase in allocation for the state’s flagship scheme. The budget reflects a commitment to uplifting various sectors while ensuring fiscal discipline.
Key Budgetary Highlights
The government’s flagship ‘Bana Kaih’ scheme has received a significant boost, with a 75% increase in funding. This move aims to strengthen economic activities, generate employment, and improve self-sufficiency in key sectors. The scheme, which focuses on rural development and direct benefit transfers, is expected to play a crucial role in poverty alleviation.
Additionally, the budget introduces a universal health insurance scheme, ensuring better healthcare access for the people of Mizoram. With healthcare being a major focus, the scheme aims to reduce the financial burden on citizens while improving medical infrastructure across the state.
One of the notable aspects of the budget is that it does not propose any new taxes. This decision aligns with the government’s strategy to provide relief to businesses and individuals while maintaining revenue through efficient financial management.
Economic Outlook and Fiscal Projections
The Gross State Domestic Product (GSDP) for Mizoram in 2025-26 is projected to reach ₹48,038 crore, marking an impressive 22% growth from the previous fiscal year. This robust projection is attributed to strategic investments in key sectors, along with increased government spending on developmental projects.
The total expenditure, excluding debt repayment, is estimated at ₹13,786 crore, reflecting a 6% reduction compared to the revised estimates of the previous year. Meanwhile, revenue receipts, excluding borrowings, are expected to stand at ₹12,420 crore, which marks a 3% decline from the previous fiscal year. The government aims to manage this gap through efficient fiscal policies and prudent expenditure.
The fiscal deficit is pegged at 2.85% of the GSDP, adhering to fiscal responsibility norms. Additionally, the state’s outstanding debt is projected to be 33.98% of the GSDP, which remains within manageable limits, ensuring financial stability.
Sectoral Allocations and Development Plans
- Agriculture and Rural Development: A significant portion of the budget has been allocated to agriculture and allied sectors, focusing on modern farming techniques, irrigation, and financial support for farmers. This investment is expected to boost productivity and income levels in rural areas.
- Education: The education sector has been prioritized, with increased allocations for improving infrastructure, teacher training, and digital learning initiatives. The government aims to enhance the quality of education and provide better opportunities for students across the state.
- Infrastructure and Connectivity: Investments in roads, bridges, and public utilities have been increased to enhance connectivity and support economic activities. The focus on infrastructure development is expected to attract investments and improve trade opportunities for Mizoram.
- Social Welfare: Programs targeting the welfare of women, children, and marginalized communities have received higher funding. The government’s aim is to promote inclusivity and social justice through enhanced social security schemes.
Comparing with Previous Budgets
The 2025-26 budget reflects a steady increase in spending compared to the previous year’s ₹14,412 crore allocation. The rise in funding, particularly in flagship schemes and healthcare, demonstrates the government’s commitment to accelerating growth and development. Unlike previous budgets, which had modest increases, this year’s financial plan shows a strategic shift toward larger investments in welfare programs and infrastructure.
Challenges and Implementation Concerns
While the budget appears promising, its success will depend on effective implementation. Ensuring that funds reach the intended beneficiaries without bureaucratic delays or leakages will be crucial. Moreover, external economic factors, such as inflation and global financial trends, could impact the state’s revenue projections.
Additionally, the government needs to focus on enhancing revenue generation through alternative means, such as promoting tourism and boosting local industries, to maintain fiscal balance without relying heavily on central grants.
Mizoram’s ₹15,198 crore budget for 2025-26 underscores a strong focus on economic growth, social welfare, and infrastructure. The 75% hike in flagship scheme allocations and the introduction of universal health insurance highlight the government’s commitment to improving the quality of life for its citizens. With prudent fiscal policies and strategic investments, Mizoram is on a promising trajectory toward sustainable development and economic resilience. However, efficient execution and transparency will be key in translating these financial commitments into tangible benefits for the people of the state.
