Kohima: Nagaland burned through 18,858.47 crore during the 2024-25 financial year. Auditors found that 2,790.41 crore of that total, or 14 percent, consisted of passthrough transactions. The Comptroller and Auditor General of India detailed these figures in its latest state finance report. Money flowed into several specific channels: 90.54 crore went to Finance Commission grants and 12.78 crore moved to the Building and Other Construction Workers’ Welfare Board. The state also shifted 2,184.47 crore in Central share funds for Centrally Sponsored Schemes and moved 502.62 crore in NPS contributions to fund managers.
Cash flow remains stuck in neutral. The report notes that, "The State's expenditure is predominantly revenue-oriented, reflecting high routine and administrative outlays that constrain fiscal flexibility." Spending is currently geared toward consumption rather than building infrastructure. Capital expenditure remains low, signaling a lack of investment in new assets.
General services eat up most of the budget to cover administrative and governance costs. Spending on social services, covering health and education, continues to rise. Economic services, however, lack consistent support. Figures show uneven investment in industry and infrastructure over the last five years. State auditors now warn that officials must control revenue spending and ramp up capital investment to ensure long-term growth.
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