Arunachal Pradesh Unveils 2026-27 Budget with Focus on Infrastructure and Hydropower
Deputy Chief Minister Chowna Mein presented the Arunachal Pradesh budget for the fiscal year 2026-27 on Tuesday, outlining a comprehensive development agenda centered on infrastructure, hydropower, entrepreneurship, and welfare. The budget, which marks Mein's 12th consecutive presentation, stresses fiscal discipline while aiming to build a "Viksit Arunachal" through sustained growth, stronger governance, and inclusive development.
Economic Growth and Fiscal Highlights
In his budget speech, Deputy CM Chowna Mein highlighted the state's significant economic progress over the past decade. He reported that Arunachal Pradesh's Gross State Domestic Product (GSDP) has grown by nearly 135%, the budget size has expanded by 226%, per capita income has more than doubled, and own resources have increased by an impressive 460%. These figures underscore the state's robust economic trajectory and fiscal management.
Six Key Focus Areas of the Budget
The 2026-27 budget is structured around six primary focus areas designed to drive holistic development:
- Foundational Infrastructure: Enhancing connectivity and urban development.
- People-Centric Development: Prioritizing welfare and public services.
- Sustained Growth: Fostering long-term economic expansion.
- Entrepreneurship and Jobs: Promoting MSMEs and employment generation.
- Resource Mobilization and Fiscal Stability: Ensuring financial sustainability.
- Governance Reforms: Improving administrative efficiency.
Major Infrastructure and Connectivity Projects
A major thrust of the budget is on improving connectivity across the state. The government has set a target to complete 87 township roads in the 2026-27 fiscal year. Significant progress is already underway on the Naharlagun–Hollongi Airport road, with ₹90 crore allocated for developing an Aerocity near Donyi Polo Airport. This initiative aims to position Itanagar as a hub for tourism and trade. Additionally, the government is exploring innovative transport solutions, including monorail and ropeway systems for the capital region, to enhance urban mobility.
Hydropower Development and Energy Potential
Deputy CM Mein underscored Arunachal Pradesh's immense hydropower potential, estimated at 58,000 MW. The state plans to commission 19 GW of hydropower capacity between 2025 and 2035, involving investments of ₹1.9 lakh crore. Key projects include the Subansiri Lower project, expected to be fully commissioned by December 2026, and the Dibang project, targeted for completion by 2032. The state anticipates monetized free power worth ₹4,520 crore over the next decade and ₹4,100 crore annually thereafter, boosting revenue and energy security.
Healthcare and Education Initiatives
In the healthcare sector, the budget provides for new district hospitals at Tato and Nafra, expansion of trauma care facilities, digital health infrastructure upgrades, and a ₹217-crore cancer hospital at Midpu. These measures aim to improve medical access and services across the state.
For education, the Mission Shikshit Arunachal 2029 includes a ₹500-crore Golden Jubilee School Programme, development of local language textbooks, establishment of AVGC labs, and a Japanese language center. These initiatives are designed to enhance educational quality and cultural integration.
Agriculture, Tourism, and Employment Generation
The budget proposes expansions in agriculture and tourism to diversify the economy. Key agricultural focuses include oil palm, kiwi, avocado, and passion fruit cultivation, along with support for dairy and fisheries sectors. In tourism, plans include developing Buddhist circuits and a World War II heritage museum to attract visitors and preserve historical heritage.
For employment generation, the ARUN MSME Mission will support 500 enterprises annually, alongside startup promotion programs. These efforts aim to create job opportunities and foster entrepreneurial growth.
Long-Term Vision for 2047
Deputy CM Chowna Mein emphasized that the budget reflects a long-term vision for a strong, inclusive, and future-ready Arunachal Pradesh by 2047. The strategy aligns economic growth with welfare and sustainability, ensuring that development benefits all sections of society while maintaining fiscal prudence.
