Aizawl, Mar 4: Mizoram Chief Minister Lalduhoma on Tuesday presented a Rs 15,198.76 crore budget for 2025-2026 and announced a 75 per cent increase in fund allocation for the flagship ‘Bana Kaih’ (Handholding) scheme, a financial assistance programme for farmers and small entrepreneurs.
He said the government will introduce a scheme from April to provide health insurance of up to Rs 5 lakh cover per year to beneficiaries.
The chief minister, who also holds the finance portfolio, also presented supplementary demands for grants for the current fiscal (2024-25) amounting to Rs 3,512.33 crore.
There was no proposal for levying new taxes in the budget.
Presenting the annual budget and supplementary demands in the assembly, Lalduhoma said the government gives priority to the state’s flagship programme “Bana Kaih” scheme and allocated Rs 350 crore for the 2025-26 fiscal, a 75 per cent increase from Rs 200 crore earmarked in the current fiscal.
The Bana Kaih scheme was launched in September last year and aimed at providing financial assistance and support primarily to entrepreneurs and farmers (“progress partners”) through targeted programmes designed to promote economic growth and self-sufficiency.
One of the key components of the scheme is handholding to progress partners (beneficiaries), under which the government provides financial support and offers loans up to Rs 50 lakh to beneficiaries through partner banks.
Under this scheme, the state government introduced support prices for key crops – ginger, turmeric, Mizo chilli and broomsticks.
Lalduhoma said that his government would continue to purchase the four agricultural crops from the farmers in the next financial year.
He said that the government also prioritise the health sector and will introduce a universal scheme from April to provide health insurance of up to Rs 5 lakh cover per year to beneficiaries.
The CM said that Rs 50 crore has been allocated for the implementation of the proposed scheme and other healthcare-related infrastructure.
In his second budget speech after the Zoram People’s Movement (ZPM) came to power in December 2023, Lalduhoma said that Mizoram aims to capitalise on the opportunities arising from the country’s rapid ascent and grow alongside the nation towards the goal of ‘viksit Bharat’ and ‘viksit Mizoram’.
“The total amount projected under revenue receipt and capital receipt for the financial year 2025-2026 is Rs 15,198.76 crore, out of which Rs 2,616.33 crore is expected from the state’s own tax revenues and non-tax revenues and Rs 10,331.28 crore from the Centre in the forms of share of taxes, revenue deficit grant, CSS and other grants,” Lalduhoma said.
He said that the revenue expenditure for 2025-26 is estimated at Rs 12,540.20, which is 82.51 per cent of the total budget and 4.88 per cent higher than the current fiscal estimate of Rs 1,1957 crore.
The total fund earmarked for capital expenditure is Rs 2,658.56 crore and it accounts for 17.49 per cent of the total estimated expenditure with an 8.29 per cent increase as compared to the current fiscal estimate of Rs 2,455 core, he said.
While capital expenditure is meant mainly for the creation of assets and infrastructures for the public, enhancing productivity, employment generation and investment, the revenue expenditure covers mainly salaries and wages, pension expenses, interest payments and power purchases, among others.
On the size of the state economy, Lalduhoma said that the GSDP is estimated to touch Rs 36,088.82 core during the next financial year against Rs 34,003.27 core in the 2024-25 fiscal.
He said that the government adopted a more realistic approach to calculate GSDP figures after recognising issues arising out of over-projected GSDP in the past.
With the new method of calculation, the GSDP for 2024-25 in Revise Estimate (RE) now stands at Rs 34,0003.27 crore, reflecting a Rs 14,034.25 crore decrease from Rs 48,037.52 crore Budget Estimate (BE), he said.
“Although there is a significant decline in the projected GSDP figure, it does not mean that the economy is stalled and the state economy is projected to grow at 10.21 per cent in the next financial year,” Lalduhoma also told a press conference after presenting the budget.
He said that the government would prioritise projects and infrastructure development plans funded by the Centre, which require a low share by the state. (PTI)
