Budget 2025: Rs 5,915 cr boost for NE with 47.6 pc increase in MDoNER allocation

GUWAHATI, Feb 1
The Union Budget 2025-26 has provided a significant boost to the North Eastern Region (NER), with a 47.6 per cent increase in the Ministry of Development of North Eastern Region (MDoNER) allocation.
The budget estimate for FY 2025-26 stands at Rs 5,915 crore, compared to Rs 4,006 crore in the revised estimates for FY 2024-25.
This increase underscores the Modi Government’s commitment to infrastructure, connectivity, industry, and social welfare in the region.
In a big bonanza to all taxpayers with a special focus on the middle class, Finance Minister Nirmala Siatharaman announced a significant cut in tax rates and an increase in rebates. While those with annual taxable income of up to Rs 12 lakh will have no tax liability, those with higher in- comes will have savings of up to Rs 1.1 lakh on account of rate rationalization under the new tax regime (NTR).
Under the NTR, the new tax slabs are: nil tax on annual income of up to Rs 4 lakh, 5 per cent on Rs 4 lakh-8 lakh, 10 per cent on Rs 8 lakh-12 lakh, 15 per cent on Rs 12 lakh-16 lakh, 20 per cent on Rs 16 lakh-20 lakh, 25 per cent on Rs 20 lakh-24 lakh, and 30 per cent on annual income above Rs 24 lakh.
Under the NTR, annual taxable income is calculated by deducting Rs 75,000 (standard deduction) from the salary, and this benefit is available to all taxpayers under the NTR. So effectively, those with an annual salary of Rs 12.75 lakh will have no tax liability as per the Budget proposal.
Here are the key budgetary announcements bene- fiting Northeast
Regional Connectivity & Infrastructure Expansion
Under the UDAN – Regional Connectivity Scheme, the Government aims to expand air connectivity to 120 new destina- tions, including hilly and remote districts in the North East. The Government is focusing on smaller airports and helipads to improve accessibility. The scheme aims to carry 4 crore additional passengers in the next 10 years.
Power Sector Reforms
States implementing electricity distribution and transmission upgrades will be allowed 0.5% additional borrowing of their GSDP which is expected to improve energy reliability across NER.
Agriculture & Rural Development
Urea Plant in Assam: A 12.7 lakh metric ton per annum urea plant to be established at Namrup to boost agricultural productivity.
PM Dhan-Dhaanya Krishi Yojana: Covers 100 agri-districts, including the North East, focusing on crop diversification, irrigation, and storage.
Aatmanirbharta in Pulses Mission: A six-year initiative supporting Tur, Urad, and Masoor production, benefiting NER farmers.
India Post’s Role in Financial Inclusion: Expan- sion of micro-enterprise credit, DBT cash transfers, and institutional banking services in remote NE districts.
Industry, Employment & Clean Energy
Support for MSMEs: Increased credit guarantee cover for exporter MSMEs up to Rs 20 crore.
Manufacturing & Clean Tech: Government support for solar PV, EV batteries, wind turbines, and transmission infrastructure will aid industrial growth in NER.
Women & Child Development
Saksham Anganwadi & Poshan 2.0: Nutritional support for 8 crore children, 1 crore pregnant/lactating women, and 20 lakh adolescent girls in NER.
Tourism & Cultural Development
The Budget 2025 places a special focus on developing Buddhist tourism circuits in the North Eastern Region (NER) to attract domestic and international visitors. To enhance tourism infrastructure, states will receive performance-linked incentives for improving tourist amenities and connectivity. Additionally, MUDRA loans will be provided to support homestay ventures, empowering local entrepreneurs and fostering sustainable tourism growth in the region.
Research, Digital Innovation & Trade
PM Research Fellowship: 10,000 fellowships in IITs & IISc, with opportunities for North Eastern students.
BharatTradeNet: A digital trade infrastructure platform to integrate NER MSMEs into global supply chains.
National Geospatial Mission: Modernization of land records and infrastructure planning for rural & urban development in the North East.
Financial & Policy Reforms for NER
The increase in Foreign Direct Investment (FDI) in the insurance sector to 100% is set to boost financial inclusion in the North Eastern Region (NER), attracting investment and expanding coverage. Additionally, the introduction of the ‘Grameen Credit Score’ for rural lending will enhance access to microfinance, empowering Self-Help Groups (SHGs) and small entrepreneurs across the region.
Investment Friendliness Index to encourage ease of doing business in the region.
Jan Vishwas Bill 2.0: Decriminalization of regulatory provisions, simplifying business operations in NER.
With a substantial increase in MDoNER funding and targeted interventions in connectivity, agriculture, energy, tourism, and industry, the budget signals a major push for the North East's economic growth.
The focus on self-reliance, digital expansion, and inclusive development aligns with the Modi government's vision to position the North East as a key driver of India’s growth story. India Today NE