Budget 2026–27: Northeast Remains a Fiscal Footnote

The Union Budget 2026–27 reiterates the Centre’s development pitch for the Northeast—focusing on connectivity, culture, agriculture and strategic integration—without a significant shift in fiscal priority. The allocation for the Ministry of Development of the North Eastern Region (DoNER) rises from Rs 5,915 crore to Rs 6,812.30 crore, but its share of total Union expenditure inches up only marginally from 0.12% to about 0.13%.

Finance Minister Nirmala Sitharaman positioned the Northeast within a broader eastern growth arc, the “Purvodaya States,” while spreading region-specific initiatives across sectors rather than announcing a consolidated package. Agriculture received attention through support for agarwood and other high-value crops, while tourism and culture featured in a new Buddhist circuit scheme spanning several Northeastern states. Infrastructure gains are expected largely through national programmes, not dedicated regional allocations. An upgrade of the National Mental Health Institute in Tezpur was also announced.

Overall, the Budget offers continuity and incremental increases, with symbolic recognition of the region’s cultural and ecological uniqueness, even as the Northeast’s share in overall central spending remains largely unchanged.