Staff REPORTER
ITANAGAR, Mar 12: Arunachal Pradesh Legislative Assembly on Thursday passed the state’s annual Budget for the 2026–27 financial year through a voice vote following a marathon discussion in the House.
The Budget was presented on Tuesday by Deputy Chief Minister and Minister in-charge of Finance and Planning Chowna Mein. With a total outlay of Rs 36,607 crore, the Budget prioritises investments in healthcare, education, infrastructure and livelihood generation, while also focusing on entrepreneurship, governance reforms and fiscal stability in Arunachal Pradesh.
The Budget Estimate (BE) for FY 2026–27 stands at Rs 36,607 crore, compared to Rs 39,842 crore in FY 2025–26, reflecting a reduction of about 8.1 percent. Mein said the reduction was mainly due to a decline in the share of central taxes as per the recommendations of the 16th Finance Commission of India based on horizontal devolution.
Replying to members’ views during the discussion, the Deputy Chief Minister said the government had prepared a “good and diligent budget” to ensure that every section of society, including women and children, benefits through improved healthcare, education, connectivity, livelihoods and governance reforms.
He explained that the shortfall in central tax devolution was due to parameters such as population criteria, demographic legacy, area weightage, forest cover and per capita Gross State Domestic Product (GSDP).
To compensate for the shortfall, Mein said the government would focus on tax rationalisation, promotion of industries, strengthening agriculture and allied sectors, and enhancing revenue through land lease and other sources.
The Budget is structured around six major focus areas, allocating Rs 2,038 crore for strengthening foundations of the future, Rs 3,320 crore for people-centric development, Rs 630 crore for sustaining economic growth, Rs 307 crore for entrepreneurship and employment, and Rs 727 crore for governance and reforms, along with emphasis on resource mobilisation and fiscal stability.
Chief Minister Pema Khandu appreciated Mein for presenting the state budget for the 12th consecutive year, stating that it would provide a new direction for the state.
Taking note of the reduced tax devolution recommended by the 16th Finance Commission, Khandu said the state faces a shortfall of around Rs 400 crore in the current financial year, which could rise to about Rs 40,000 crore over the next five years.
“It’s a testing time for Arunachal Pradesh. In this situation, we must bring more reforms, aggressively focus on resource mobilisation and fiscal stability, and take governance reforms to the next level,” he said.
To address the shortfall, the Chief Minister emphasised the need to strengthen land reforms, the power sector and the MSME sector, which would help augment the state’s own resources.
He also informed that under the CM Comprehensive Road Development Programme-II (CMCRDP-II), the government has set a target of completing 144 township and district headquarters roads, including 87 roads scheduled for completion in 2026–27. Additionally, 36 old bridges will be replaced with new ones during the fiscal year.
Highlighting initiatives for youth and start-ups, Khandu said around 2,500 youths would be covered under the Deen Dayal Upadhyaya Swavalamban Yojana, while urging lawmakers not to interfere in the selection of beneficiaries.
He also referred to the Centre’s initiative Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), VB - G RAM G, which aims to provide 125 days of guaranteed employment, and stressed the need to focus on water security and improvement of village infrastructure.
During the discussion, the Chief Minister also announced that the state’s Tax, Excise and Narcotics Department will be bifurcated, with the Tax Department functioning as a separate entity.
Members cutting across party lines participated in the discussion and praised the Deputy Chief Minister for presenting what they described as a “well-balanced” and “pragmatic” budget.
Following the debate, the Budget was passed by voice vote before Speaker Tesam Pongte adjourned the House sine-die at the close of the fifth and final day’s proceedings of the Assembly session.