Nagaland CM Rio presents 2024-25 Budget; announces universal life insurance scheme

Nagaland Chief Minister Neiphiu Rio on Tuesday announced a fully-funded universal life insurance scheme as he presented the Budget for 2024-25 which did not propose any hike in taxes.

Presenting the budget on the second day of the ongoing session of the State Assembly, Rio, who also holds the finance portfolio, said gross receipts are estimated at Rs 23,978.05 crore and the gross expenditures are pegged at Rs 23,727.88 crore.

The budget estimate is an increase of Rs 644.22 crore compared to the previous financial year where the amount was at Rs 23,083.66 crore.

Rio termed the budget as people-centric and tax-free for the welfare of the people in general.

Among significant measures, the state government announced a fully-funded universal life insurance scheme to mitigate financial hardship due to the untimely demise of a family's breadwinner. The Chief Minister's Universal Life Insurance Scheme will be fully funded by the state government.

A life insurance coverage of Rs 2 lakh will be given and additionally, accidental insurance coverage of Rs 2 lakh each will also be provided for the breadwinner and three other family members, Rio said.

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The accidental insurance component covers both disability and death. 

In case of accidental death, the sum insured is Rs 2 lakh per beneficiary, Rs 2 lakh in case of total and irrecoverable loss of both eyes or loss of use of both hands or feet and Rs 1 lakh for total and irrecoverable loss of sight of one eye or loss of use of one hand or foot.

This scheme will cover every household in Nagaland and a provision of Rs 15 crore has been provided to pay the cost of premium, he said.

Besides, the Local Area Development Fund (LADF) allocation has been hiked to Rs 2 crore from Rs 1 crore for each constituency.

To generate more resources for capital infrastructure, it becomes imperative to continuously take measures to augment our resources, he said steps are being taken in the different revenue sectors.

While emphasising that issues relating to the people of Eastern Nagaland continue to be of paramount importance, Rio said an amount of Rs 180 crore has been sanctioned under PM DevINE for the areas of Eastern Nagaland.