Budget 2025-26: DoNER Ministry allocation increases, other measures for northeast

The Union Budget 2025, presented in the Lok Sabha by Finance Minister Nirmala Sitharaman on Saturday, allocated Rs 5,915 crore for the Ministry of Development of North Eastern Region (DoNER) for FY 2025-26, increasing the allocation by 47.65 per cent over Rs 4,006 crore (Revised Estimates) for FY 24-25.  

According to the budget, under the modified UDAN (Ude Desh ka Aam Naagrik), the Regional Connectivity Scheme would be expanded to 120 new destinations in the country, including enhanced connectivity for the northeastern region (NER).

The scheme would focus on smaller airports and helipads in hilly and remote districts to boost regional air travel and target to carry four crore passengers in the next 10 years.

An additional 0.5 per cent of GSDP borrowing is allowed in the budget for states implementing electricity distribution and intra-state transmission augmentation and it would be expected to improve energy availability and reliability in the NER.

For ‘Atmanir Bharta’ in urea production, the government has decided to reopen three dormant urea plants in the eastern region. To further augment urea supply, the Union Budget 2025 proposed to set up a plant with an annual capacity of 12.7 lakh metric tons at Namrup in Assam’s Dibrugarh district. This proposed urea plant would lead to enhanced availability of urea/fertilisers for increasing agri Productivity in the NER.

Under the Prime Minister Dhan-Dhaanya Krishi Yojana, 100 agri-districts would be covered, including those in the NER. The Yojana would focus on crop diversification, irrigation, storage, and credit access benefiting 1.7 crore farmers, including those in NER.

Under the Mission for ‘Atmanir Bharta’ in Pulses, a six-year mission would facilitate the production of tur, urad, and masoor. Remunerative prices and procurement support would be ensured via NAFED and NCCF and enhance the potential of NER’s role in national pulse production.

As India Post is a catalyst for the rural economy, the expansion of financial inclusion services would improve last-mile financial connectivity in remote NER districts. Services provided will include micro-enterprise credit, DBT cash transfers, and institutional banking services.

Saksham Anganwadi and Poshan 2.0 programme provide nutritional support to more than eight crore children, one crore pregnant women and lactating mothers all over the country, and about 20 lakh adolescent girls in aspirational districts and the northeast region.

The budget also proposes to give a special focus on Buddhist tourism circuits in NER.

The MUDRA loan for homestays will promote local tourism entrepreneurs. Under the PM Research Fellowship scheme, opportunities for students and researchers from the northeast would be increased.

According to the Union Budget 2025, Bharat Trade Net - Digital Trade Infrastructure would support the MSMEs in NER to integrate with global supply chains. The National Geospatial Mission would be a potential benefit for urban planning and rural connectivity in NER, the Union Budget, adding that the northeastern states would benefit from rankings and policy improvements.

Meanwhile, the Jan Vishwas Bill 2.0 would facilitate the decriminalisation of regulatory provisions, encouraging ease of doing business in the northeastern region.