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Itanagar, Mar 12: Chief Minister Pema Khandu on Thursday highlighted the key priorities of the State Budget 2026–27 in the Arunachal Pradesh Legislative Assembly and thanked members for their constructive participation in the discussion. He also congratulated Deputy Chief Minister and Finance Minister Chowna Mein for presenting his 12th consecutive State Budget.Khandu described the budget as a bridge between the achievements of the past decade and the vision of Viksit Arunachal Pradesh. He informed the House that the State has topped the NITI Aayog Fiscal Health Index 2026 among the North Eastern and Himalayan states.
Referring to the 16th Finance Commission, the Chief Minister said the State may face a revenue shortfall of about ₹4,000 crore, but expressed confidence that fiscal reforms and expansion of the tax base would help manage the challenge.Highlighting infrastructure progress, he said road construction has increased from about 300 km annually earlier to nearly 1,800 km per year now. Under the Chief Minister’s Comprehensive Road Development Plan, all 144 administrative headquarters are expected to be connected by road during the current financial year.The Chief Minister stressed the need to boost the State’s GSDP by promoting tourism, agriculture, horticulture, floriculture and MSMEs, while empowering youth, farmers and entrepreneurs.
He also highlighted initiatives such as the Deen Dayal Upadhyaya Swavalamban Yojana (DDUSY), which has benefited over 2,380 youths. He further referred to the upcoming digitally conducted census should be conducted diligently which will impact delimitationand the development of the Buddhist Circuit across six North Eastern states, expected to boost tourism in Arunachal Pradesh.
Speaking during the discussion, Deputy Chief Minister and Finance Minister Chowna Mein said the 16th Finance Commission’s recommendations will influence the State’s fiscal position. Based on current estimates, he noted that Arunachal Pradesh may face a fiscal deficit of around ₹4,000 crore in the Budget Estimates. He said the government is focusing on improving tax administration, strengthening land and property revenue, promoting eco-friendly tourism and responsibly utilising mineral resources. A review mechanism under the Chief Secretary, with meetings every two months, will monitor the progress of key schemes and development programmes.
Meanwhile, at the conclusion of the discussion, the House continued deliberations and voted on the Demands for Grants for the year 2026–27 of the Government of Arunachal Pradesh.Thereafter, Deputy Chief Minister and Minister in-charge of Finance Chowna Mein moved for leave to introduce the Arunachal Pradesh Appropriation (No. 2) Bill, 2026, which was introduced in the House. Subsequently, the House took up the Bill for consideration and passed the Arunachal Pradesh Appropriation (No. 2) Bill, 2026, authorising the Government to withdraw funds from the Consolidated Fund of the State for the financial year 2026–27.