Arunachal Pradesh slashes 2026-27 budget by 8.1% amid fiscal constraints
Arunachal Pradesh has unveiled its budget for 2026-27, totalling Rs 36,607 crore. This marks an 8.1% decrease from the previous year's Rs 39,842 crore. The reduction follows lower central allocations based on the 16th Finance Commission's recommendations.
The new budget prioritises six key areas, with the largest share—Rs 3,320 crore—dedicated to people-centric development. However, the overall plan leaves a deficit of Rs 701.43 crore.
The budget allocates funds across six major sectors. Strengthening foundations receives Rs 2,038 crore, targeting roads, hydropower, electricity, and solar energy. Rehabilitation policies also fall under this category.
People-centric development gets the highest funding at Rs 3,320 crore. This covers health, education, and support programmes for girls and youth. Entrepreneurship and employment follows with Rs 307 crore, focusing on MSMEs, skill training, and startup growth.
For sustaining economic growth, Rs 630 crore will go to oil palm farming, millet production, tourism, and the wine industry. Resource mobilisation and fiscal stability is allocated Rs 188 crore, covering central schemes, state revenue, and green market initiatives.
Finally, governance and reforms receives Rs 727 crore. This will fund police, fire services, border management, and tech-driven governance improvements.
The overall budget deficit stands at Rs 701.43 crore, reflecting financial constraints from reduced central funding.
No direct comparisons with other states or detailed impacts from past Finance Commission decisions were available in public records.
The 2026-27 budget reduces spending by 8.1% compared to last year. Key sectors like health, infrastructure, and governance receive targeted funding despite the shortfall. The deficit of Rs 701.43 crore highlights ongoing fiscal challenges for the state.
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