Kohima: The Union Government sent Nagaland an extra Rs 524 crore on October 31. This money arrived as an additional installment of tax devolution alongside the standard monthly payment. The Ministry of Finance confirmed the transfer, noting the total release to all states reached Rs 1,09,019 crore.
Officials said the move aims to help states finish capital projects and fund welfare programs before the holidays. This is the second time Nagaland has seen such a payout this financial year. The Centre delivered an identical Rs 524 crore payment on August 1. These two injections bring the state an extra Rs 1,048 crore total.
These funds remain separate from the state's regular monthly allotment. The 2026-27 budget projects Nagaland will receive Rs 7,341.28 crore in central tax shares. According to the Ministry, the additional transfer serves to "support States in stepping up capital spending and financing development and welfare-related expenditure."
Tax devolution differs from standard grants-in-aid. It represents a cut of federal tax revenue mandated by the Finance Commission. Nagaland expects another Rs 9,439 crore in central grants this year. These transfers form the backbone of the state budget.
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