The Chief Minister of Mizoram, Pu Lalduhoma, presented the Budget for the state for the financial year 2024-25 on February 27, 2024.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Mizoram for 2024-25 (at current prices) is projected to be Rs 48,038 crore, amounting to a growth of 22% over 2023-24.

  • Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 13,786 crore, a decrease of 6% over the revised estimates of 2023-24.  In addition, debt of Rs 491 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 12,420 crore, a decrease of 3% as compared to the revised estimate of 2023-24.

  • Revenue surplus in 2024-25 is estimated to be 1.2% of GSDP (Rs 565 crore), higher than the revised estimates for 2023-24 (0.7% of GSDP).

  • Fiscal deficit for 2024-25 is targeted at 2.8% of GSDP (Rs 1,366 crore).   In 2023-24, as per the revised estimates, fiscal deficit is expected to be 4.7% of GSDP, higher than the budget estimate of 3.5% (Rs 1,247 crore).

Policy Highlights

  • Power supply:  Electricity tariffs will not be increased to provide relief to household consumers.  Upgradation initiatives such as replacing old transformers with new ones, connecting rooftop solar to the grid, and creating other infrastructure will be undertaken.  Rs 20 crore has been allocated for this.

  • Stamp duty:   Stamp duty is proposed to be increased from 1% of the market value of property to 3%.  A concession will be provided to widows at 2.5%.

  • Anti-intoxicants drive:  Efforts will be made with civil society, to combat the menace of drugs and alcoholism.  Restoration and de-addiction programmes will be run through a network of residential homes and non-institutional services.  Rs 50 lakh has been allocated for this in 2024-25.

  • Hand-holding policy (Bana Kaih):  The policy provides assistance to people engaged in agriculture and industry.  In 2024-25, various programmes, initiatives, and central government schemes will be converged under this policy, to benefit those in agriculture and industry.  Rs 200 crore has been allocated under this scheme for 2024-25.

Mizoram’s Economy

  • GSDP:  In 2022-23, Mizoram’s GSDP (at constant prices) grew at 13.6%.  In comparison, national GDP is estimated to grow at 7% in 2022-23.

  • Sectors:  The agriculture sector grew by 1.7% in 2022-23.  Manufacturing sector grew by 21.6% while services grew by 12% in 2022-23.

  • In 2022-23, agriculture, manufacturing, and services sectors are estimated to contribute 21%, 33%, and 46% to the economy, respectively (at current prices).

  • Per capita GSDP:  The per capita income of Mizoram in 2022-23 (at current prices) is estimated at Rs 2,32,126, a compounded growth of 14% from 2012-13.

Figure  1 : Growth in GSDP and sectors in Mizoram at constant prices (2011-12)

image

Note: Agriculture includes mining and quarrying; Manufacturing includes construction and electricity.  These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: Mizoram Economic Survey 2023-24; PRS.

Budget Estimates for 2024-25

  • Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 13,786 crore.  This is a decrease of 6% over the revised estimate of 2023-24.   This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 12,420 crore and net borrowings of Rs 1,501 crore.  Total receipts for 2024-25 (other than borrowings) are expected to register a decrease of 3% over the revised estimate of 2023-24.

  • Revenue surplus in 2024-25 is estimated to be 1.2% of GSDP (Rs 565 crore), higher than the revised estimates for 2023-24 (0.7% of GSDP).

  • Fiscal deficit for 2024-25 is targeted at 2.8% of GSDP (Rs 1,366 crore), lower than the revised estimates for 2023-24 (4.7% of GSDP).  Fiscal deficit in 2023-24 is estimated to be higher at the revised stage due to a 25% increase in capital outlay, and a 13% increase in revenue expenditure.  Note that the fiscal deficit for 2024-25 may be higher, if the state is not able to meet the estimated 22% GSDP growth.

Table  1 : Budget 2024-25 - Key figures (in Rs crore)

Items

2022-23 Actuals

2023-24 Budgeted

2023-24 Revised

% change from BE 23-24 to RE 23-24

2024-25 Budgeted

% change from RE 23-24 to BE 24-25

Total Expenditure

14,019

14,210

16,105

13%

14,277

-11%

(-) Repayment of debt

2,603

1,443

1,443

0%

491

-66%

Net Expenditure (E)

11,416

12,767

14,662

15%

13,786

-6%

Total Receipts

14,328

14,210

16,046

13%

14,412

-10%

(-) Borrowings

4,019

2,690

3,247

21%

1,992

-39%

Net Receipts (R)

10,309

11,520

12,799

11%

12,420

-3%

Fiscal Deficit (E-R)

1,108

1,247

1,863

49%

1,366

-27%

as % of GSDP

3.4%

3.5%

4.7%

 

2.8%

 

Revenue Surplus

190

418

257

-39%

565

120%

as % of GSDP

0.6%

1.2%

0.7%

 

1.2%

 

Primary Deficit

614

585

1,199

105%

761

-37%

as % of GSDP

1.9%

1.6%

3.1%

 

1.6%

 

GSDP

32,829

35,904

39,356

10%

48,038

22%

Note: BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Mizoram Budget 2024-25; PRS.

Expenditure in 2024-25

  • Revenue expenditure for 2024-25 is proposed to be Rs 11,822 crore, a decrease of 5% over the revised estimate of 2023-24.  This includes the expenditure on salaries, pensions, interest, grants, and subsidies.  Revenue expenditure is estimated to be 13% higher at the revised stage in 2023-24, as compared to the budget estimate of 2023-24 (Rs 11,069 crore).

  • Capital outlay for 2024-25 is proposed to be Rs 1,954 crore, a decrease of 8% over the revised estimate of 2023-24.  Capital outlay indicates the expenditure towards asset creation.  Capital outlay is estimated to be Rs 2,128 crore in 2023-24 at the revised stage, 25% higher than the budget estimate for 2023-24.

Gender Budget 2024-25

Mizoram introduced a Gender Budget in 2024-25.  It indicates how much of the total budget is being spent towards the welfare of women.  In 2024-25, Mizoram’s Gender Budget is estimated to be Rs 74 crore, which is 1% of its total expenditure for the year.  A significant portion of the gender budget (78%) is being spent on social welfare schemes.  Of this, Rs 42 crore is estimated to be spent on Anganwadi services, which provide supplementary nutrition, pre-school non-formal education, immunisation, and health check-up services.

The rest of the gender budget will be spent on education (Rs 13 crore) and police (four crore rupees).

Table  2 :  Expenditure budget 2024-25 (in Rs crore)

Items

2022-23 Actuals

2023-24 Budgeted

2023-24 Revised

% change from BE 23-24 to RE 23-24

2024-25 Budgeted

% change from RE 23-24 to BE 24-25

Revenue Expenditure

10,092

11,069

12,509

13%

11,822

-5%

Capital Outlay

1,322

1,697

2,128

25%

1,954

-8%

Loans given by the state

2

2

25

1149%

11

-58%

Net Expenditure

11,416

12,767

14,662

15%

13,786

-6%

Sources:   Annual Financial Statement, Mizoram Budget 2024-25; PRS.

Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay.  In 2024-25, Mizoram is estimated to spend Rs 7,167 crore on committed expenditure, which is 58% of its estimated revenue receipts.  This comprises spending on salaries (37% of revenue receipts), pension (16%), interest payments (5%).  Salary expenditure in 2024-25 is expected to be Rs 4,597 crore, 6% less than the revised estimate of 2023-24.  In 2022-23, Mizoram’s committed expenditure was 65% of its revenue receipts.  

Table  3 : Committed Expenditure in 2024-25 (in Rs crore)

Committed Expenditure

2022-23 Actuals

2023-24 Budgeted

2023-24 Revised

% change from BE 23-24 to RE 23-24

2024-25 Budgeted

% change from RE 23-24 to BE 24-25

Salaries

4,403

4,643

4,899

6%

4,597

-6%

Pension

1,834

1,876

1,956

4%

1,966

0%

Interest payment

494

662

664

0%

605

-9%

Total Committed Expenditure

6,731

7,181

7,518

5%

7,167

-5%

Sources: Annual Financial Statement, Mizoram Budget 2024-25; PRS.

Sector-wise expenditure:  The sectors listed below account for 58% of the total expenditure on sectors by the state in 2024-25.  A comparison of Mizoram’s expenditure on key sectors with that of other states is shown in Annexure 1.

Table  4 : Sector-wise expenditure under Mizoram Budget 2024-25 (in Rs crore)

Sector

2022-23 Actuals

2023-24 Budgeted

2023-24 Revised

% change from BE 2023-24 to RE 2023-24

2024-25 Budgeted

% change from RE 2023-24 to BE 2024-25

Education, Sports, Arts, and Culture

1,728

1,872

2,104

12%

2,374

13%

Energy

991

832

910

9%

944

4%

Health and Family Welfare

734

751

949

26%

840

-11%

Agriculture and Allied Activities

718

663

951

43%

727

-24%

Police

706

700

780

11%

726

-7%

Roads and Bridges

766

519

1,142

120%

645

-44%

Welfare of SC, ST, OBC, and Minorities

553

506

585

16%

612

5%

Rural Development

312

337

440

31%

438

0%

Urban Development

112

595

856

44%

376

-56%

Social Welfare and Nutrition

251

248

367

48%

319

-13%

% of total expenditure on all sectors

60%

55%

62%

13%

58%

-6%

Sources: Annual Financial Statement, Mizoram Budget 2024-25; PRS.

  • Expenditure in several sectors such as urban development, roads and bridges, agriculture, and social welfare is estimated to reduce in 2024-25, as compared to the revised estimates of 2023-24.  Expenditure in these sectors at the revised stage is estimated to be significantly higher than the budget estimate of 2023-24.  This is partly because no capital outlay was estimated in 2023-24 for agriculture, roads and bridges, and social welfare at the budget stage.

Receipts in 2024-25

  • Total revenue receipts for 2024-25 are estimated to be Rs 12,386 crore, a decrease of 3% over the revised estimate of 2023-24.  Of this, Rs 2,435 crore (20%) will be raised by the state through its own resources, and Rs 9,952 crore (80%) will come from the centre.  Resources from the centre will be in the form of state’s share in central taxes (49% of revenue receipts) and grants (31% of revenue receipts).

  • Devolution:  In 2024-25, state’s share in central taxes is estimated at Rs 6,099 crore, an increase of 10% over the revised estimate of 2023-24.

  • Grants from the centre in 2024-25 are estimated at Rs 3,853 crore, a decrease of 25% from the revised estimate for 2023-24.  Grants are lower in 2024-25 partly on account of revenue deficit grants tapering off.   The 15th Finance Commission had recommended revenue deficit grants worth Rs 6,544 crore for Mizoram for five years between 2021-22 and 2025-26.  It received 75% of these grants by 2023-24, and will receive Rs 1,079 crore in 2024-25 and Rs 586 crore in 2025-26.  It will receive Rs 1,474 crore in 2023-24.  In 2024-25, grants are also expected to reduce on account of grants for centrally sponsored schemes being 25% lower than the amount estimated at the revised stage for 2023-24.

  • State’s own tax revenue:  Mizoram’s total own tax revenue is estimated to be Rs 1,312 crore in 2024-25, an increase of 11% over the revised estimate of 2023-24.  Own tax revenue as a percentage of GSDP is estimated at 2.7% in 2024-25, lower than the revised estimates for 2023-24 (3%), and the actual figures for 2022-23 (3.4%).

Table  5 : Break-up of the state government’s receipts (in Rs crore)

Items

2022-23 Actuals

2023-24 Budgeted

2023-24 Revised

% change from BE 2023-24 to RE 2023-24

2024-25 Budgeted

% change from RE 2023-24 to BE 2024-25

State's Own Tax

1,102

1,084

1,183

9%

1,312

11%

State's Own Non-Tax

1,028

897

902

1%

1,122

24%

Share in Central Taxes

4,745

5,107

5,522

8%

6,099

10%

Grants-in-aid from Centre

3,407

4,398

5,158

17%

3,853

-25%

   Of which

 

 

 

 

 

 

   Revenue Deficit Grants

1,615

1,474

1,474

0%

1,079

-27%

   Centrally Sponsored Schemes

1,600

2,670

3,424

28%

2,559

-25%

   Other grants/transfers

192

254

261

3%

214

-18%

Revenue Receipts

10,282

11,487

12,766

11%

12,386

-3%

Non-debt Capital Receipts

26

34

34

0%

34

0%

Net Receipts

10,309

11,520

12,799

11.1%

12,420

-3%

BE is Budget Estimates; RE is Revised Estimates. 
Sources: Annual Financial Statement, Mizoram Budget 2024-25; PRS.

  • In 2024-25, State GST is estimated to be the largest source of own tax revenue (80% share).  State GST revenue is estimated to increase by 10% over the revised estimates of 2023-24.  

  • Revenue from stamps duty and registration fees is expected to rise from Rs 14 crore in 2023-24 to Rs 30 crore in 2024-25.  This may be because the government has announced an increase in the stamp duty from 1% of the market value of the property to 3%.

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

Head

2022-23 Actuals

2023-24 Budgeted

2023-24 Revised

% change from BE 2023-24 to RE 2023-24

2024-25 Budgeted

% change from RE 2023-24 to BE 2024-25

State GST

904

865

952

10%

1,045

10%

Sales Tax/ VAT

113

120

132

10%

140

6%

Taxes on Vehicles

41

43

43

0%

50

17%

Stamps Duty and Registration Fees

8

14

14

0%

30

107%

Land Revenue

10

20

20

0%

22

13%

State Excise

2

2

2

0%

2

11%

Sources: Annual Financial Statement, Revenue Budget, and Mizoram Budget 2024-25; PRS.

Deficits, Debt, and FRBM Targets for 2024-25

The Mizoram Fiscal Responsibility and Budget Management (FRBM) Act, 2006 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.

Revenue surplus:  It is the difference of revenue receipts and revenue expenditure.   A revenue surplus implies that the state need not rely on borrowings to fund revenue expenditure.  The budget estimates a revenue surplus of Rs 565 crore (or 1.2% of the GSDP) in 2024-25.  The surplus is observed due to revenue deficit grants received from the Centre.   If the grant of Rs 1,079 crore were not provided in 2024-25, Mizoram would have a revenue deficit of Rs 514 crore.   

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 2024-25, the fiscal deficit is estimated to be 2.8% of GSDP.  For 2024-25, the central government has permitted fiscal deficit of up to 3.5% of GSDP to states, of which 0.5% of GSDP will be available only upon carrying out certain power sector reforms.   The state will also be eligible to avail 50-year interest-free loan for capital outlay from the central government over and above its borrowing limit.  It is estimated to receive Rs 500 crore on account of this loan in 2024-25.  

As per the revised estimates, in 2023-24, the fiscal deficit of the state is expected to be 4.7% of GSDP.  This is higher than the budget estimate for 2023-24 (3.5%).  Any unutilised fiscal deficit limit from years since 2021-22 may be utilised in subsequent years.  The fiscal deficit is projected to be maintained at 2.8% of GSDP by 2026-27.  

Outstanding liabilities:  Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on public account.  At the end of 2024-25, the outstanding liabilities are estimated to be 29% of GSDP, lower than the revised estimate for 2023-24 (32% of GSDP).  The outstanding liabilities significantly rose in 2021-22 (41% of GSDP), and have moderated thereafter.

Figure  2 : Revenue and Fiscal Balance (% of GSDP) 

image

Note: *Figures for 2025-26 and 2026-27 are projections;  RE is Revised Estimates; BE is budget estimates.
Sources: Medium Term Fiscal Policy, Mizoram Budget 2024-25; PRS.  

Figure  3 : Outstanding Liabilities (as % of GSDP) image

Note: *Figures for 2025-26 and 2026-27 are projections;  RE is Revised Estimates; BE is budget estimates.
Sources: Medium Term Fiscal Policy, Mizoram Budget 2024-25; PRS.

Outstanding Government Guarantees: Outstanding liabilities 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 of March 31, 2023, the state’s outstanding guarantee is estimated to be Rs 69 crore, which is 0.2% of Mizoram’s GSDP in 2022-23.

Annexure 1:  Comparison of states’ expenditure on key sectors

The graphs below compare Mizoram’s expenditure in 2024-25 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 Mizoram) as per their budget estimates of 2023-24.1

  • Education: Mizoram has allocated 17.2% of its expenditure on education in 2024-25.  This is higher than the average allocation for education by states in 2023-24 (14.7%).

  • Health:  Mizoram has allocated 6.1% of its total expenditure towards health, which is similar to the average allocation for health by states (6.2%).

  • Welfare of SC, ST and OBCs:  Mizoram has allocated 4.4% of its expenditure on welfare of SCs, STs, and OBCs.  This is higher than the average allocation by states (3.5%).

  • Housing:  Mizoram has allocated 0.8% of its expenditure towards housing, lower than the average allocation of states (1.7%). 

  • Roads and bridges:  Mizoram has allocated 4.7% of its expenditure towards roads and bridges.  This is similar to the average allocation by states (4.6%).

  • Energy:  Mizoram has allocated 6.8% of its total expenditure towards energy, which is significantly higher than the average allocation by states (4.7%).  Note that Mizoram does not have a power distribution company, and carries out the function through its power department.

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Note: 2022-23, 2023-24 (BE), 2023-24 (RE), and 2024-25 (BE) figures are for Mizoram.
Sources: Annual Financial Statement, Mizoram Budget 2024-25; various state budgets; PRS.

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

Annexure 2:  Comparison of 2022-23 Budget Estimates and Actuals

The following tables compare the actuals of 2022-23 with budget estimates for that year.

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

Particular

2022-23 BE

2022-23 Actuals

% change from BE to Actuals

Net Receipts (1+2)

11,460

10,309

-10%

1. Revenue Receipts (a+b+c+d)

11,426

10,282

-10%

a. Own Tax Revenue

801

1,102

38%

b. Own Non-Tax Revenue

836

1,028

23%

c. Share in central taxes

4,083

4,745

16%

d. Grants-in-aid from the Centre

5,705

3,407

-40%

2. Non-Debt Capital Receipts

34

26

-21%

3. Borrowings

2,548

4,019

 

Net Expenditure (4+5+6)

12,670

11,416

-10%

4. Revenue Expenditure

10,007

10,092

1%

5. Capital Outlay

2,663

1,322

-50%

6. Loans and Advances

1

2

265%

7. Debt Repayment

1,338

2,603

95%

Revenue Balance*

1,420

190

-113%

Revenue Balance (as % of GSDP)*

3.6%

0.6%

-

Fiscal Deficit

1,210

1,108

-8%

Fiscal Deficit (as % of GSDP)

3.1%

3.4%

-

Note: * Negative sign (-) indicates a deficit.
Source: Mizoram Budget Documents of various years; PRS.

Table  8 : Key Components of State's Own Tax Revenue

Tax Head

2022-23 BE

2022-23 Actuals

% change from BE to Actuals

Land Revenue

19

2

-90%

Taxes on Vehicles

35

8

-78%

Sales Tax/ VAT

115

113

-2%

State GST

598

904

51%

Stamps Duty and Registration Fees

11

41

266%

State Excise

1

10

856%

Source: Mizoram Budget Documents of various years; PRS.

Table  9 : Allocation towards Key Sectors

Sector

2022-23 BE

2022-23 Actuals

% change from BE to Actuals

Urban Development

708

112

-84%

Irrigation and Flood Control

93

37

-60%

Transport

1,128

826

-27%

of which Roads and Bridges

1,103

766

-31%

Rural Development

410

312

-24%

Agriculture and Allied Activities

873

718

-18%

Education, Sports, Arts, and Culture

1,795

1,728

-4%

Health and Family Welfare

721

734

2%

Water Supply and Sanitation

471

504

7%

Police

636

706

11%

Welfare of SC, ST, OBC, and Minorities

492

553

12%

Social Welfare and Nutrition

218

251

15%

Energy

645

991

54%

Housing

13

58

353%

Source: Mizoram Budget Documents of various years; PRS.

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