Kohima, November 1 (MExN): The Union Government has released Rs 524 crore to Nagaland as an additional instalment of tax devolution on October 31, alongside the regular monthly devolution, according to the Ministry of Finance.
The release is part of an additional transfer of Rs 1,09,019 crore to State Governments, announced ahead of the festive season to enable States to accelerate capital expenditure and meet development and welfare-related spending requirements.
The Ministry stated that the additional instalment was intended to support States in stepping up capital spending and financing development and welfare-related expenditure.
This is the second additional instalment released to Nagaland during the 2026–27 financial year. The Centre had released an identical amount of Rs 524 crore to the State on August 1, taking the total additional tax devolution through the two instalments to Rs 1,048 crore.
The additional transfers are over and above Nagaland’s regular monthly share of central taxes. According to the Union Government’s Budget Estimates for 2026–27, Nagaland is projected to receive Rs 7,341.28 crore as its share of central taxes during the financial year.
Tax devolution refers to the distribution of a share of the Union Government’s tax revenue among States under the constitutional framework and the recommendations of the Finance Commission. It is distinct from grants-in-aid provided by the Centre.
Nagaland’s Budget for 2026–27 estimates Rs 9,439 crore in central grants, in addition to its projected share of central taxes. Together, tax devolution and central grants account for the bulk of the State’s revenue receipts, underscoring its dependence on transfers from the Union Government.
