Arunachal Pradesh Legislature Authorises ₹39,842 Crore Expenditure for 2025-26 Financial Year

The Arunachal Pradesh Legislative Assembly recently enacted The Arunachal Pradesh Appropriation (No. 2) Act, 2025 (Act No. 2 of 2025), which received the assent of the Governor on March 28, 2025, and was subsequently published in the Official Gazette on March 29, 2025. This Act, an essential legislative instrument, was passed during the Fourth Session of the Eighth Legislative Assembly. Its primary purpose is to authorise the payment and appropriation of specific sums from the Consolidated Fund of the State of Arunachal Pradesh to meet the expenses for various government services during the financial year 2025-2026. The legislation came into force retrospectively from April 1, 2025, and will remain effective until March 31, 2026, covering the entirety of the fiscal year. The Act permits the withdrawal of a substantial sum, amounting to Rupees Thirty nine thousand eight hundred forty two crore twenty three lakh only (₹39,842,23,00,000), from the state's Consolidated Fund, which serves as the principal government account for all revenues and expenditures. This allocation is meticulously detailed across numerous departments and services, including significant provisions for sectors such as Home Department, Public Works Department, Planning and Investment, and Elementary Education, among others, ensuring the continued functioning and development initiatives of the state government. No specific debates surrounding the legislation were detailed in the provided text.

The legislative intent behind The Arunachal Pradesh Appropriation (No. 2) Act, 2025, is to provide the necessary financial backing for the state government's operations and policy implementation for the upcoming fiscal year. This Act addresses the fundamental legal requirement for legislative sanction of government expenditure, a cornerstone of financial accountability in a democratic system. The earlier legal position mandates that no money can be drawn from the Consolidated Fund of the State without the authority of law, typically an Appropriation Act passed by the Legislative Assembly. This Act fills the statutory gap by providing that explicit legal authority for the financial year 2025-26, thereby enabling various government departments to incur expenditure on approved schemes and services. The legislation does not introduce new rights or obligations for citizens directly, nor does it amend existing substantive laws; rather, it empowers the executive to spend within the limits and for the purposes approved by the legislature. The Act specifies the sums to be appropriated for each service and purpose, categorising them as either 'Voted by Assembly' or 'Charged on the Consolidated Fund', ensuring transparency and adherence to budgetary allocations. For instance, substantial funds have been allocated to critical areas such as Health Services, Secondary Education, and Rural Works Department, reflecting the state's priorities. The legislation provided: “From and out of the Consolidated Fund of the State of Arunachal Pradesh there may be withdrawn sums not exceeding those specified in column 3 of the Schedule amounting in the aggregate to the sum of Rupees Thirty nine thousand eight hundred forty two crore twenty three lakh only towards defraying the several charges which will come in course of payment during the financial year, 2025-26 in respect of the services specified in column 2 of the Schedule.” This provision is central to the Act, as it legally authorises the state government to access and utilise public funds for the specified period, thereby ensuring the continuity of public services and the execution of development projects across Arunachal Pradesh.

Keywords: Arunachal Pradesh, Appropriation Act, State Budget, Financial Year 2025-26, Consolidated Fund, Legislative Assembly, State Expenditure, Government Finance, Public Services, India

Geo Tags: India, Arunachal Pradesh District: Not Applicable