Mizoram Unveils Comprehensive Tax-Free Budget for 2026-27 Fiscal Year
In a significant financial announcement, Mizoram Chief Minister Lalduhoma, who also holds the finance portfolio, presented the state's gross annual budget for the 2026-2027 fiscal year in the legislative assembly on Thursday. The budget, amounting to a substantial Rs 17,076.92 crore, notably includes no proposals for new taxes or increases in the rates of existing taxes, providing relief to citizens and businesses across the state.
Supplementary Grants and Revenue Expenditure Details
Alongside the main budget, CM Lalduhoma presented the supplementary demand for grants for the 2025-2026 financial year, which totals Rs 3,724.25 crore. According to the detailed budget for 2026-2027, the total revenue expenditure is projected at Rs 14,094.47 crore, accounting for 82.53% of the total budgetary estimate. This represents a 13.81% increase over the amount estimated in the 2025-26 budget estimates.
The Chief Minister explained that the escalation in revenue expenditure is driven by several key factors:
- Increased administrative expenses, including power purchase commitments.
- Maintenance of core infrastructure such as roads, government buildings, and water supply systems.
- Servicing of interest on public debt.
He further elaborated that enhanced provisions under salaries reflect annual increments and increases in dearness allowance/dearness relief. Pensionary expenditure has also risen due to the revision and fixation of pensions under the first formulation for pre-2016 pensioners.
Capital Expenditure and Key Allocations
The total disbursement under capital expenditure for the 2026-27 budget estimates is projected at Rs 2,982.44 crore, which constitutes 17.46% of the gross total estimated expenditure. Among the notable allocations:
- Rs 350 crore has been allocated for the implementation of the state government's flagship programme, the Bana Kaih (handholding) scheme. This includes Rs 150 crore specifically for the purchase of selected cash crops under the detailed head of "Thlaithar leina under handholding scheme."
- Rs 80 crore has been earmarked for the MLA Local Area Development Fund, benefiting 40 legislators.
- Rs 43.25 crore has been allocated to the State Road Fund Board under the public works department, sourced from funds collected through road maintenance cess during the current financial year. This is in addition to the normal road fund board budgetary allocation of Rs 40 crore, bringing the total allocation for road maintenance in 2026-2027 to Rs 183.25 crore.
Healthcare, Priority Projects, and Central Schemes
In a move to bolster public health, Rs 130 crore has been allocated for payment of healthcare bills under the Mizoram Universal Health Care Scheme (MUHCS), which operates in a cashless mode. An additional Rs 50 crore will be sourced from contributions by government employees and interests on the corpus fund. Furthermore, Rs 100 crore has been set aside for state priority projects to drive development initiatives.
For the implementation of various central schemes, Rs 250 crore has been allocated for the state matching share (SMS) or counterpart funding. Additionally, a token provision of Rs 1,000 crore is allocated under the Special Assistance to States for Capital Investment (SASCI) for the 2026-2027 fiscal. However, the Chief Minister noted that the exact amount may vary pending new guidelines, stating, "In the absence of new guidelines, we do not know the exact amount we will be able to avail, and the amount may increase or decrease after the new guidelines are formulated."
This budget presentation underscores Mizoram's commitment to balanced fiscal management, focusing on infrastructure, healthcare, and social welfare without imposing additional tax burdens on its residents.
