Budget 2026-27: Northeast Receives Major Boost with Rs 1.08 Lakh Crore Allocation
Finance Minister Nirmala Sitharaman, presenting the Union Budget for 2026-27, has placed special emphasis on accelerating development in India's northeastern region. In her budget speech delivered in Guwahati, she outlined this focus as part of her third kartavya to fulfill the government's broader Sankalp for a Viksit Bharat. The budget aims to unlock new employment opportunities and drive inclusive growth across the eight states of the Northeast.
Substantial Financial Allocation and Key Proposals
The total allocation for the northeastern region has been enhanced to over Rs 1.08 lakh crore, marking a sharp increase from the revised estimates of Rs 88,000 crore in the previous budget. Among the significant proposals is the launch of a scheme for the development of Buddhist circuits across Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura under the Champion Services Sector Scheme.
Sitharaman highlighted that the northeastern region represents a civilisational confluence of Theravada and Mahayana/Vajrayana traditions. The Buddhist circuit scheme will cover:
- Preservation of temples and monasteries
- Development of pilgrimage interpretation centres
- Enhancement of connectivity and pilgrim amenities
The Champion Services Sector Scheme is formulated to develop the tourism sector, making India a more competitive destination and providing enriching experiences for tourists. It includes sub-components such as:
- Support for creating tented accommodation in the Buddhist circuit
- Incentives for improving air connectivity to iconic sites and Buddhist tourism destinations
- Capacity building programs in and around iconic sites
- Incentives for tour operators in emerging markets
- Promotion of meeting, incentive, conference, and exhibitions tourism
Special Development Packages and Agricultural Initiatives
The budget also introduces a first-ever special development package for reformed ULFA, alongside continuing packages for the Bodo, Karbi, and Dima Hasao autonomous councils. Three new components have been introduced for:
- Adivasi groups of Assam
- Dimasa people of Assam
- Tribals of Tripura
These packages will direct funds toward infrastructure and development projects to uplift marginalized communities and promote inclusive growth. On the agricultural front, Sitharaman has proposed support for high-value agar trees in the northeast and nuts such as almonds, walnuts, and pine nuts in hilly regions. This initiative aims to boost farmer incomes and diversify rural livelihoods, with special attention to small and marginal farmers.
Sector-wise Allocation and Broader Vision
The highest allocation for the coming fiscal year is over Rs 18,000 crore under the Ministry of Road Transport and Highways, followed by over Rs 13,000 crore under the Department of Agriculture and Farmers' Welfare, and over Rs 10,000 crore under the Department of Rural Development.
In her speech, Sitharaman emphasized that accomplishing the third kartavya requires targeted efforts to focus on the Purvodaya states and the northeast region to accelerate development and employment opportunities. This includes increasing farmer incomes through productivity enhancement and entrepreneurship, empowering Divyangjan through access to livelihood opportunities, training, and high-quality assistive devices, and enabling the vulnerable to access mental health and trauma care.
The budget's comprehensive approach underscores the government's commitment to holistic development in the northeast, leveraging its cultural heritage, natural resources, and strategic location to foster economic growth and social empowerment.
