The Mizoram government presented its budget for the fiscal year 2025-26 on Tuesday, emphasising fiscal consolidation, enhanced social welfare, and strategic economic initiatives aimed at aligning with India’s growth trajectory.

The budget, presented to the Legislative Assembly by Chief Minister Pu Lalduhoma, outlined a roadmap for “Viksit Mizoram” (Developed Mizoram), addressing past economic challenges and laying the groundwork for sustainable development.

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Key highlights of the budget include a revised Gross State Domestic Product(GSDP) calculation for 2024-25, now estimated at Rs 34,003.27 crore, reflecting a more realistic assessment despite a significant decrease from earlier projections.

The GSDP for 2025-26 is projected to increase to Rs 36,088.82 crore, indicating a steady growth rate.
The government has prioritised the timely release of funds, clearing substantial liabilities from K-deposits, D-III, GPF, and other retirement benefits, totaling over Rs 2,600 crore. Additionally, lapsed deposits amounting to Rs 60.19 crore have been declared, reducing liabilities and improving fiscal health.

In the power sector, timely bill payments have led to reduced surcharges and rebates, demonstrating fiscal responsibility.

Social welfare initiatives have seen a significant boost, with the state’s contribution to National Social Assistance Programme pensions increasing tenfold, benefiting the elderly, widows, and physically challenged.

Healthcare has received considerable attention, with 80 per cent of outstanding healthcare bills resolved and plans for the Mizoram Universal Healthcare Scheme to be launched in April 2025. The Public Distribution System has undergone reforms, reducing subsidies and curbing rice wastage.

Tax reforms, including the introduction of Road Maintenance Cess and Social Infrastructure and Services Cess on petroleum products, are expected to generate additional revenue. Administrative reforms, such as the implementation of the Kai App, aim to enhance efficiency and discipline across government offices.

The “Handholding Scheme” for progress partners has been allocated Rs 350 crore, a significant increase from the previous year, supporting agriculture and sericulture. The state has also successfully availed additional funds under Special Assistance to States for Capital Investment (SASCI), totaling Rs 792.18 crore.

The budget estimates for 2025-26 project a revenue surplus of Rs 562.91 crore, with a fiscal deficit of Rs 1,651.68 crore. The Debt/GSDP ratio is estimated at 38.79 per cent, reflecting the impact of the revised GSDP calculation.

Sectoral allocations include Rs 6,510.39 crore for General Services, Rs 4,747.24 crore for Social Services, and Rs 3,518.37 crore for Economic Services. Major expenditures include salaries, pensions, infrastructure maintenance, and power purchases.

The government has also sought approval for a supplementary demand of Rs 3,512.33 crore for the revised estimates of 2024-25. The budget underscores the government’s commitment to fiscal discipline, social welfare, and sustainable economic growth, aligning Mizoram’s development with the national vision of a developed India.