Unlike in other states where economists appraise the budget and point out the good and bad of it, apparently, the budget presented to the Nagaland Legislative Assembly on February 18 went largely un-scanned as crucial misses were not pointed out. Probably the inhibition comes after the recent earth shaking pandemic that affected not only the state with its fragile economy, but also the country as well as the world around. It was a well-crafted budget containing a lot of imaginative proposals. Like the first budget, it is long on intent and short on content. This may be seen in how deficit continues to soar. In the budget the shadow of the looming deficit indicates that the current deficit(2021-22) will end with a negative Rs.365.33 cr and along with negative opening balance of Rs.2314.13 crore, the total deficit at the end of 2021-22 is projected to close at Rs.2679.46 crore. The budget is effusive and full of fresh ideas and initiatives, but these increasingly look like post-dated cheques. It falls far short of addressing crucial issues such as corruption, economy, employment among others. While the leader of the opposition TR Zeliang, described the budget as “contract-oriented”; most refrained from deciphering the budget that was long on intent and short on content. What the opposition leader had said can be understood from the proposals, where much of the fund allocated to various departments went largely towards construction of new office building or roads and supply of various items. If there is one issue of major concern, then it is with unemployment. Despite having spent huge amount, the state’s economy is still unable to rise to desired levels for job creation. The government has on paper stopped fresh appointments but there are reports of ‘backdoor appointments’ going around. Perhaps the opposition could have addressed this pertinent issue. Financial institutions and banks in Nagaland are inhibited in giving loans and for which they cannot be faulted. One is that Banks, which have to play a major role in any revival of the economy, are bogged down with bad loans and rising Non Performing Assets(NPA).The other reason is that mortgage of land and property required as collateral for loan, is not permitted under state laws. The state government has yet to give its assent to SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002).The Act allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans. However, under the Nagaland Land and Revenue Regulation (Amendment) Act, 2002 financing institutions, nationalised banks and cooperative societies are not permitted to transfer any land to any person other than the indigenous inhabitant of Nagaland, except with the previous sanction of the state government or an authority appointed in this behalf. Banks etc are unable to access SARFAESI, and find it difficult to provide loans under normal terms and conditions. There appears to be a dichotomy of approach- one is wanting to get loans and the other is not wanting to give land and building as mortgage, or like wanting the cake and eating it too. With falling revenues from state’s share of Central Taxes, rising fuel prices, dwindling internal revenue collection, unemployment, corruption and other problems; budgetary visions without addressing the core issues, have not contributed anything much or justified the huge expenditures incurred, if the past serve as indications.