Mizoram Budget Analysis

2025-26
The Chief Minister of Mizoram, Pu Lalduhoma, presented the Budget for the state for the financial year 2025-26 on
March 04, 2025.
Budget Highlights
 The Gross State Domestic Product (GSDP) of Mizoram for 2025-26 (at current prices) is projected to be
Rs 36,089 crore, amounting to growth of 6% over 2024-25.
 Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 14,624 crore, a decrease of 8%
from the revised estimates of 2024-25. In addition, debt of Rs 419 crore will be repaid by the state.
 Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 12,973 crore, a decrease of 3% to the
revised estimates of 2024-25.
 Revenue surplus in 2025-26 is estimated to be 1.6% of GSDP (Rs 563 crore), as compared to a revenue deficit
of 0.1% of GSDP (Rs 39 crore) at the revised estimate stage in 2024-25.
 Fiscal deficit for 2025-26 is targeted at 4.6% of GSDP (Rs 1,652 crore). In 2024-25, as per the revised
estimates, fiscal deficit is expected to be 7.6% of GSDP, higher than the budgeted 2.8% of GSDP.
Policy Highlights
 Hand-holding policy (Bana Kaih): The policy provides financial assistance to people engaged in agriculture
and industry. Rs 350 crore has been allocated under this scheme for 2025-26.
 Agricultural subsidies: Mizoram Agriculture Marketing Board has been allocated Rs 110 crore for 2025-26.
This fund will be utilised to guarantee a minimum support price for crops such as broom grass, ginger, turmeric,
Mizo chillies, and locally grown paddy.
 Healthcare: Government will introduce a universal healthcare scheme from April to provide health insurance
of up to five lakh rupees cover per year to beneficiaries.
 Improved Taxation: The Taxation Department will undergo modernisation with new staff recruitments, to
help enhance tax revenue.

Mizoram’s Economy Figure 1: Growth in Mizoram’s GSDP at constant prices

 GSDP: In 2023-24, Mizoram (2011-12)
GSDP (at constant prices) is
25%
20.8%

estimated to grow by 10.3% over the

16.9%

20%
15.6%

previous year. In comparison,

15.2%

14.3%

India’s GDP is estimated to grow by

11.4%

11.1%

15%
10.3%

9.2% in 2023-24.
9.4%

7.5%
6.7%

 Sectors: In 2023-24, agriculture, 10%

3.8%

3.3%

manufacturing, and services sectors

1.5%

5%
are estimated to contribute 18%,
33%, and 49% of Mizoram’s 0%
economy, respectively (at current
-0.3%

-1.3%
-1.6%

prices). -5%

 Per capita GSDP: In 2023-24, -10%

-8.1%
-13.7%

-9.4%

Mizoram’s per capita GSDP (at

-15%
current prices) is estimated to be Rs
Agriculture Manufacturing Services GSDP
2,75,633, an increase of 11% over
2022-23. In 2023-24, India’s per
2019-20 2020-21 2021-22 2022-23 2023-24
capita GDP is estimated to be Rs
2,15,935. Note: These numbers are as per constant prices (2011-12) which implies that the
growth rate is adjusted for inflation.
Sources: MoSPI; PRS.

Vaishali Dhariwal
April 22, 2025
[email protected]
PRS Legislative Research  Institute for Policy Research Studies
3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi – 110002
Tel: (011) 2323 4801, 4343 4035  www.prsindia.org
 Mizoram Budget Analysis 2025-26 PRS Legislative Research

Budget Estimates for 2025-26

 Total expenditure (excluding debt repayment) in 2025-26 is estimated at Rs 14,624 crore. This is a
decrease of 8% from the revised estimate of 2024-25. This expenditure is proposed to be met through
receipts (excluding borrowings) of Rs 12,973 crore and net borrowings of Rs 1,807 crore. Total receipts
for 2025-26 (other than borrowings) are expected to be 1% higher than the revised estimate of 2024-25.
 The state estimates a revenue surplus of 1.6% of GSDP (Rs 563 crore) in 2025-26, as compared to a
revenue deficit of 0.1% of GSDP at the revised estimate stage in 2024-25.
 Fiscal deficit for 2025-26 is targeted at 4.6% of GSDP (Rs 1,652 crore), lower than the revised estimates
for 2024-25 (7.6% of GSDP). This could be attributed to an increase in the fiscal deficit from Rs 1,366
crore to Rs 2,597 crore, along with a decrease in the GSDP from Rs 48,038 crore to Rs 34,003 crore in the
revised estimates compared to the budget estimates for 2024–25.
Table 1: Budget 2025-26 - Key figures (in Rs crore)
% change
% change from
2023-24 2024-25 2024-25 from BE 24- 2025-26
Items RE 24-25 to BE
Actuals Budgeted Revised 25 to RE 24- Budgeted
25-26
25
Total Expenditure 17,004 14,277 16,416 15% 15,043 -8%
(-) Repayment of debt 4,889 491 491 0% 419 -15%
Net Expenditure (E) 12,116 13,786 15,925 16% 14,624 -8%
Total Receipts 17,840 14,412 15,393 7% 15,199 -1%
(-) Borrowings, 6,402 1,992 2,065 4% 2,226 8%
Net Receipts (R) 11,438 12,420 13,328 7% 12,973 -3%
Fiscal Deficit (E-R) 678 1,366 2,597 90% 1,652 -36%
as % of GSDP 2.1% 2.8% 7.6% 4.6%
Revenue Balance# 577 565 -39 -107% 563 -1536%
as % of GSDP 1.8% 1.2% -0.1% 1.6%
Primary Deficit 96 761 1,964 158% 859 -56%
as % of GSDP 0.3% 1.6% 5.8% 2.4%
GSDP 31,918 48,038 34,003 -29% 36,089 6%
Note: BE is Budget Estimates; RE is Revised Estimates. *Central government has been providing 50-year interest-free loans to state
governments for capital expenditure since 2020-21. These loans are excluded from the calculation of the state's borrowing ceiling.
#
Negative figures indicate revenue deficit.
Sources: Annual Financial Statement, Mizoram Budget Documents 2025-26; PRS.

Expenditure in 2025-26
 Revenue expenditure for 2025-26 is proposed to be Rs 12,385 crore, a decrease of 7% over the revised
estimate of 2024-25. This includes the expenditure on salaries, pension, interest, and subsidies.
 Capital outlay for 2025-26 is proposed to be Rs 2,236 crore, a decrease of 13% from the revised estimate
of 2024-25. Capital outlay indicates the expenditure towards creation of assets.
 In 2025-26, loans and advances by the state are expected to be four crore rupees, 80% lower as compared to
the revised estimate of 2024-25.
Table 2: Expenditure budget 2025-26 (in Rs crore)
% change from % change from
2023-24 2024-25 2024-25 2025-26
Items BE 24-25 to RE RE 24-25 to BE
Actuals Budgeted Revised Budgeted
24-25 25-26
Revenue Expenditure 10,837 11,822 13,334 13% 12,385 -7%

Capital Outlay 1,254 1,954 2,573 32% 2,236 -13%

Loans given by the state 25 11 18 76% 4 -80%
Net Expenditure 12,116 13,786 15,925 16% 14,624 -8%
Sources: Annual Financial Statement, Mizoram Budget Documents 2025-26; PRS.

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 Mizoram Budget Analysis 2025-26 PRS Legislative Research

Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of

salaries, pension, and interest. A larger proportion of the budget allocated for committed expenditure items
limits the state’s flexibility to decide on other expenditure priorities, such as capital outlay. In 2025-26,
Mizoram is estimated to spend Rs 7,418 crore on committed expenditure, which is 57% of its estimated revenue
receipts. This comprises spending on salaries (34% of revenue receipts), pension (17%), and interest payments
(6%). In 2023-24, as per actual figures, 61% of revenue receipts were spent on committed expenditure.
Table 3: Committed Expenditure in 2025-26 (in Rs crore)
% change from % change from
2023-24 2024-25 2024-25 2025-26
Committed Expenditure BE 24-25 to RE RE 24-25 to BE
Actuals Budgeted Revised Budgeted
24-25 25-26
Salaries 4,408 4,328 4,450 3% 4,374 -2%
Pension 1,995 1,966 2,248 14% 2,251 0%
Interest 582 605 632 5% 793 25%
Total 6,985 6,899 7,330 6% 7,418 1%
Sources: Annual Financial Statement, Mizoram Budget Documents 2025-26; PRS.

Sector-wise expenditure: The sectors listed below account for 52% of the total expenditure on sectors by the
state in 2025-26. A comparison of Mizoram’s expenditure on key sectors with that by other states is shown in
Annexure 1.
Table 4: Sector-wise expenditure under Mizoram Budget 2025-26 (in Rs crore)
2023-24 % change from RE 24-25 to
Sectors 2024-25 BE 2024-25 RE 2025-26 BE
Actuals BE 25-26
Education, Sports, Arts,
1,738 2,374 2,550 2,093 -18%
and Culture
Energy 841 944 1,158 980 -15%
Agriculture and Allied
771 857 943 827 -12%
Activities
Health and Family
644 840 1,100 826 -25%
Welfare
Police 738 726 771 753 -2%
Welfare of SC, ST, OBC,
585 612 651 651 0%
and Minorities
Transport 970 673 1,020 599 -41%
Rural Development 224 438 504 417 -17%
Social Welfare and
211 319 616 400 -35%
Nutrition
% of total expenditure
on all sectors 56% 57% 59% 52%

Sources: Annual Financial Statement, Mizoram Budget Documents 2025-26; PRS.

April 22, 2025 -3-

 Mizoram Budget Analysis 2025-26 PRS Legislative Research

Receipts in 2025-26
 Total revenue receipts for 2025-26 are estimated to be Rs 12,948 crore, a decrease of 3% from the revised
estimate of 2024-25. Of this, Rs 2,616 crore (20%) will be raised by the state through its own resources,
and Rs 10,331 crore (80%) will come from the centre. Resources from the centre will be in the form of
state’s share in central taxes (55% of revenue receipts) and grants (25% of revenue receipts).
 Devolution: In 2025-26, the state’s share in central taxes is estimated at Rs 7,112 crore, an increase of 11%
over the revised estimate of 2024-25.
 Grants from the centre in 2025-26 are estimated at Rs 3,219 crore, a decrease of 27% over the revised
estimates for 2024-25. Revenue Deficit Grants are estimated to decrease by 46% over the revised estimates
for 2024-25, as per the recommendation of the fifteenth financial commission. The Fifteenth Finance
Commission recommended Rs 6,544 crore in revenue deficit grants for Mizoram from 2021-22 to 2025-26.
Of this, Rs 5,958 crore has already been released to the state until 2024-25.
 State’s own tax revenue: Mizoram’s total own tax revenue is estimated to be Rs 1,478 crore in 2025-26,
an increase of 11% over the revised estimate of 2024-25. Own tax revenue as a percentage of GSDP is
estimated at 4.1% in 2025-26, higher than the revised estimates for 2024-25 (3.9%). As per the actual
figures for 2023-24, own tax revenue as a percentage of GSDP was 3.7%.
Table 5: Break-up of the state government’s receipts (in Rs crore)
% change from % change from
2023-24 2024-25 2024-25 2025-26
Items BE 2024-25 to RE 2024-25 to
Actuals Budgeted Revised Budgeted
RE 2024-25 BE 2025-26
State's Own Tax 1,196 1,312 1,336 2% 1,478 11%
State's Own Non-Tax 1,085 1,122 1,127 0% 1,138 1%
Share in Central Taxes 5,647 6,099 6,434 6% 7,112 11%
Grants-in-aid from Centre 3,486 3,853 4,397 14% 3,219 -27%
Revenue Receipts 11,414 12,386 13,294 7% 12,948 -3%
Non-debt Capital Receipts 24 34 34 0% 25 -26%
Net Receipts 11,438 12,420 13,328 7% 12,973 -3%
Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Mizoram Budget Documents 2025-26; PRS.

 In 2025-26, State GST is estimated to be the largest source of own tax revenue (78% share). State
GST revenue is estimated to increase by 10% over the revised estimates of 2024-25.
 Revenue from Sales tax/ VAT in 2025-26 is expected to be 10% higher than the revised estimate stage
of 2024-25.
 Revenue from Taxes on Vehicles is estimated to be similar in 2025-26 over the revised estimate of 2024-25.

Table 6: Major sources of state’s own-tax revenue (in Rs crore)

% change from % change from
2023-24 2024-25 2024-25 2025-26
Head BE 2024-25 to RE 2024-25 to
Actuals Budgeted Revised Budgeted
RE 2024-25 BE 2025-26
State GST 969 1,045 1,045 0% 1,150 10%
Sales Tax/ VAT 126 140 140 0% 154 10%
Taxes on Vehicles 46 50 50 0% 50 0%
Other taxes and duties* 0 0.12 30 24,900% 50 67%
Stamps Duty and Registration Fees 17 30 24 -21% 24 2%
Land Revenue 10 22 22 0% 23 5%
Note: * Other taxes and duties includes road maintenance cess and social infrastructure & services cess. Sources: Annual Financial
Statement, Revenue Budget, Mizoram Budget Documents 2025-26; PRS.

April 22, 2025 -4-

 Mizoram Budget Analysis 2025-26 PRS Legislative Research

Deficits, Debt, and FRBM Targets for 2025-26

The Mizoram Fiscal Responsibility and Budget Management Act, 2006 provides annual targets to progressively
reduce the outstanding debt, revenue deficit, and fiscal deficit of the state government.
Revenue balance: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies that
the government needs to borrow to finance those expenses which do not increase its assets or reduces its liabilities.
The budget estimates a revenue surplus of Rs 563 crore (or 1.6% of the GSDP) in 2025-26.
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the
government and leads to an increase in total liabilities. In 2025-26, the fiscal deficit is estimated to be 4.6% of
GSDP. For 2025-26, the central government has permitted fiscal deficit of up to 3% of GSDP to states.
Additional borrowing space up to 0.5% of GSDP will also be available for undertaking certain power sector
reforms.
As per the revised estimates, in 2024-25, the fiscal deficit of the state is expected to be 7.6% of GSDP. This is
higher than the budget estimate for 2024-25 of 2.8% of GSDP.
Outstanding liabilities: Outstanding liabilities the accumulation of total borrowings at the end of a financial
year. At the end of 2025-26, the outstanding debt is estimated to be 38.8% of GSDP, higher than the revised
estimate for 2024-25 (38.3% of GSDP).
Figure 2: Revenue Balance and Fiscal Deficit (as % Figure 3: Outstanding Liabilities (as % of GSDP)
of GSDP) 45% 41.0%
6% 37.9% 38.3% 38.8% 37.37% 37.25%
40% 35.8%
4% 32.7% 34.0%
1.8% 1.6% 1.7% 1.67%
35%
2% 0.8% 0.6% 30%
0% 25%
-2% -0.1%
-1.4%
20%
-4% -2.7% -2.3% 15%
-3.6% -3.96%
-6% -4.6% -5.2%
-4.6% -5.10% 10%
-8% -6.4% 5%
-7.6%
-10% 0%
2026-27*

2027-28*
2019-20

2020-21

2022-23

2023-24

2025-26 BE
2024-25 RE

2026-27*

2027-28*
2019-20

2020-21

2022-23

2023-24

2025-26 BE
2024-25 RE
2021-22

2021-22

Revenue Balance Fiscal Deficit

Note: *Figures from 2026-27 onwards are projections. RE is Revised Note: *Figures from 2026-27 onwards are projections. BE is budget
Estimates; BE is budget estimates. Negative figures indicate a estimates.
deficit. Sources: Medium Term Fiscal Policy, Mizoram Budget Documents
Sources: Medium Term Fiscal Policy, Mizoram Budget Documents 2025-26; PRS.
2025-26; PRS.

Outstanding Government Guarantees: Outstanding debt of states do not include a few other liabilities that are
contingent in nature, which states may have to honour in certain cases. State governments guarantee the
borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. As per 2023-24 actuals, the
state’s total outstanding guarantees are estimated to be Rs 49.5 crore. Revised estimates of 2024-25 and budget
estimates of 2025-26 expect the guarantees to remain the same.
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April 22, 2025 -5-

 Mizoram Budget Analysis 2025-26 PRS Legislative Research

Annexure 1: Comparison of states’ expenditure on key sectors

The graphs below compare Mizoram’s expenditure in 2025-26 on six key sectors as a proportion of its total
expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 31 states
(including the Union Territories of Delhi, Jammu and Kashmir, and Puducherry) as per their budget estimates of
2024-25.1
 Education: Mizoram has allocated 14.3% of its expenditure on education in 2025-26. This is lower than
the average allocation for education by states in 2024-25 (15%).
 Health: Mizoram has allocated 5.7% of its expenditure on health in 2025-26. This is lower than the
average allocation for health by states in 2024-25 (6.2%).
 Rural development: Mizoram has allocated 2.9% of its expenditure on rural development in 2025-26.
This is lower than the average allocation for rural development by states in 2024-25 (5.1%).
 Roads and bridges: Mizoram has allocated 3.9% of its expenditure on roads and bridges in 2025-26. This
is lower than the average allocation for roads and bridges by states in 2024-25 (4.3%).
 Agriculture: Mizoram has allocated 5.7% of its expenditure on agriculture in 2025-26. This is lower than
the average allocation for agriculture by states in 2024-25 (6.3%).
 Police: Mizoram has allocated 5.1% of its expenditure on police in 2025-26. This is higher than the
average allocation for police by states in 2024-25 (4.1%).

Spending on education as a Spending on health as a % of Spending on rural

% of total expenditure total expenditure development as a % of
20%
8% 6.9% total expenditure
17.2% 6.1% 6.2%
16.0% 5.7% 6% 5.1%
14.3% 15.0% 6% 4.9%
15% 13.3%
4% 3.2% 3.2% 2.9%
4%
10%
1.7%
2% 2%
5%
0% 0%
0%
2023-24

2024-25 (RE)

2025-26 (BE)

Average of all states

2024-25 (BE)

2023-24

2024-25 (RE)
2024-25 (BE)

2025-26 (BE)
Average of all states
2023-24

2024-25 (RE)
2024-25 (BE)

2025-26 (BE)
Average of all states

(2024-25 BE)

(2024-25 BE)
(2024-25 BE)

Spending on roads and Spending on agriculture as a Spending on police as a %

bridges as a % of total % of total expenditure of total expenditure
expenditure
8% 8%
10% 5.9% 6.2% 5.9% 6.3%
5.7% 5.6% 5.3%
8% 7.2% 6% 4.8% 5.1%
5.7% 4.1%
6% 4.7% 4.3% 4% 4%
3.9%
4%
2%
2%
0% 0%
0%
2023-24

2024-25 (RE)

2025-26 (BE)
2024-25 (BE)

Average of all states

2023-24

2024-25 (RE)
2024-25 (BE)

2025-26 (BE)
Average of all states
2023-24

2024-25 (RE)
2024-25 (BE)

2025-26 (BE)

Average of all states

(2024-25 BE)

(2024-25 BE)
(2024-25 BE)

Note: 2023-24, 2024-25 (BE), 2024-25 (RE), and 2025-26 (BE) figures are for Mizoram.
Sources: Annual Financial Statement, Mizoram Budget Documents 2025-26; various state budgets; PRS

1
The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry.

April 22, 2025 -6-

 Mizoram Budget Analysis 2025-26 PRS Legislative Research

Annexure 2: Comparison of 2023-24 Budget Estimates and Actuals

The following tables compare the actuals of 2023-24 with budget estimates for that year.

Table 7: Overview of Receipts and Expenditure (in Rs crore)

Particular 2023-24 BE 2023-24 Actuals % change from BE to Actuals
Net Receipts (1+2) 11,493 11,438 0%
1. Revenue Receipts (a+b+c+d) 11,460 11,414 0%
a. Own Tax Revenue 1,084 1,196 10%
b. Own Non-Tax Revenue 870 1,085 25%
c. Share in central taxes 5,107 6,099 19%
d. Grants-in-aid from the Centre 4,398 3,486 -21%
2. Non-Debt Capital Receipts 34 24 -29%
3. Borrowings 2,690 6,402 138%
Net Expenditure (4+5+6) 12,767 13,074 2%
4. Revenue Expenditure 11,069 10,837 -2%
5. Capital Outlay 1,697 2,236 32%
6. Loans and Advances 2 1 -49%
7. Debt Repayment 1,443 4,889 239%
Revenue Balance 391 577 48%
Revenue Balance (as % of GSDP) 1.6% 1.8%
Fiscal Deficit 1,274 678 -47%
Fiscal Deficit (as % of GSDP) 3.5% 2.1%
Source: Mizoram Budget Documents of various years; PRS.

Table 8: Key Components of State's Own Tax Revenue (in Rs crore)

Tax Source/Head 2023-24 BE 2023-24 Actuals % change from BE to Actuals
Land Revenue 20 10 -48%
Sales Tax/ VAT 120 126 5%
Taxes on Vehicles 43 46 8%
State GST 865 969 12%
Stamps Duty and Registration Fees 14 17 16%
State Excise 1.8 3 43%
Source: Mizoram Budget Documents of various years; PRS.

Table 9: Allocation towards Key Sectors

Sector 2023-24 BE 2023-24 Actuals % change from BE to Actuals
Irrigation and Flood Control 89 25 -72%
Rural Development 337 224 -34%
Water Supply and Sanitation 481 389 -19%
Social Welfare and Nutrition 248 211 -15%
Health and Family Welfare 751 644 -14%
Education, Sports, Arts, and Culture 1,872 1,738 -7%
Agriculture and Allied Activities 793 771 -3%
Energy 832 841 1%
Police 700 738 5%
Welfare of SC, ST, OBC, and Minorities 506 585 16%
Urban Development 595 750 26%
Transport 555 970 75%
of which Roads and Bridges 519 936 80%
Housing 44 143 229%
Source: Mizoram Budget Documents of various years; PRS.

April 22, 2025 -7-