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Andaman & Nicobar Islands Departmental Schemes Update 2026

October 6, 2026 Modified date: October 6, 2026

Policy Update
Amrutha Lahari Kolluru

Background

Home to an aboriginal world of flora, fauna and tribal population, Andaman and Nicobar Islands serve as a Union Territory to the Indian administration. It houses an estimated population of 4,34,192 people across 836 islets/islands/rocky outcrops with a total area of 8,249 sq. kms (Andaman and Nicobar Administration, n.d.). Situated in the Bay of Bengal region, close to international boundaries of Thailand and Indonesia, ANI is made of two island groups: Andaman Islands and the Nicobar Islands. The administrative districts include three districts Nicobar, North and Middle Andaman, and South Andaman with the capital city of Sri Vijaya Puram.

Being a union territory without a legislative assembly, the archipelago does not have a dedicated Consolidated Fund to draw finances for territorial schemes. Instead, it is allocated directly out of the Consolidated Fund of India under the Demands for Grants for the Ministry of Home Affairs (MHA) presented in the Union Budget. They receive 100% central funding to implement Central Sector Schemes and UT-specific developmental projects are approved directly by the MHA and NITI Aayog.

For the 2026-27 financial year, the MHA allocates Rs. 6,083 crores of revenue expenditure and Rs. 598 crore for capital expenditure under Demand No. 52, amounting to a total of Rs. 6681 crore. (PRS, 2026) This shows that around 90% (Rs. 6083 crore) of the budgetary expenditure is dedicated to operating costs, administrative maintenance and salaries, while the remaining 10% (Rs. 598 crore) of it is allocated to infrastructure development, shipping acquisitions and road developments.

While Andaman and Nicobar Islands’ administration consists of around 32 departments, each implementing centrally sponsored schemes, this documentation includes a list of 60 flagship schemes and 29 consolidated departments in alignment with Demand No. 52 or the Union Budget estimate. The flagship schemes and budget heads enlisted portray the allocation of revenue and capital expenditures across essential public services, maritime logistics, green transitions and local livelihood development across ANI.

Andaman & Nicobar Islands BUDGET 2026-27 – DEPARTMENT WISE LIST ( 29 DEPARTMENTS, 60 SCHEMES)

The below mentioned department wise classification is one that aligns with Demand No. 52, consolidates allied sub-sectors, and focuses on flagship schemes and public development. The listed budget outlay is a result of the mapping of the flagship schemes under the relevant heads enlisted under Demand No. 52.

Agriculture Department

Departmental Outlay: ~Rs 81.89 Cr

Scheme 1: High Value Agriculture Programme (HVA), Launch Year: 2004, Key Details: Tailored specifically for the island ecosystem to boost productivity of horticultural crops, organic farming, and spices. It supports high-density organic fruit plantations, mechanization, and senile plantation rejuvenation. Financial assistance is channeled to commercial horticulture to maximize yield on limited non-forest land. The scheme is executed in convergence under Mission for Development of Horticulture (MIDH). Coverage: Horticultural farmers and agricultural societies across all island districts, Latest Budget: (Crop Husbandry BE 2026–27: Rs 64.75 Cr)
Scheme 2: Rashtriya Krishi Vikas Yojana (RKVY-RAFTAAR), Launch Year: 2007-08 (Restructured 2022-23), Key Details: Operates as an umbrella scheme for agricultural infrastructure development, organic village adoption, and post-harvest management. Coverage: Landholding farmers and government schools across island blocks, Latest Budget: Crop Husbandry & Soil/Water Conservation Combined (BE 2026–27: Rs 67.75 Cr)
Scheme 3: Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) & Minor Irrigation, Launch Year: 2015-16, Key Details: promoting micro-irrigation systems, drip and sprinkler technologies, and farm pond excavation. Coverage: Rainfed farming communities and coconut growers across all island zones, Latest Budget: (Minor Irrigation BE 2026–27: Rs 5.87 Cr)
Scheme 4: Agricultural Research, Education & Extension Services: Supports local ICAR-CIARI linkages, farmer training programs, seed multiplication, and adaptive research for island agriculture. (Latest Budget: Agricultural Research & Education BE 2026–27: ₹8.27 Cr)

Department of Health

Departmental Outlay: ~Rs 425.28 Cr

Scheme 1: National Health Mission (NHM) & Primary Health Infrastructure, Launch Year: 2013, Key Details: Delivers integrated primary, maternal, child healthcare, and universal immunization services. Coverage: Rural, urban, and indigenous tribal populations across all three island districts, Latest Budget: (Medical and Public Health BE 2026–27: Rs 394.48 Cr)
Scheme 2: Capital Budget Heads on Medical & Health Infrastructure, Launch Year: Ongoing, Key Details: Supports the construction, expansion, and modernization of district hospitals, super-specialty wings, and medical staff quarters. Coverage: Island healthcare facilities statewide, Latest Budget: (Capital Budget Heads on Medical & Public Health BE 2026–27: Rs 30.80 Cr)

Department of Education

Departmental Outlay: ~Rs 928.59 Cr

Scheme 1: General School Education & Samagra Shiksha Convergence, Launch Year: Ongoing, Key Details: Supports government and aided primary, secondary, and higher secondary schools across the UT. Coverage: School students across primary and secondary levels in all island blocks, Latest Budget: (General Education BE 2026–27: Rs 834.20 Cr)
Scheme 2: Technical & Vocational Education Program, Launch Year: Ongoing, Key Details: Modernizes polytechnic institutes, industrial training institutes (ITIs), and degree colleges in the territory. Coverage: Technical and diploma students across A&N Islands, Latest Budget: (Technical Education BE 2026–27: Rs 33.42 Cr)
Scheme 3: Capital Budget Heads on Educational & Sports Infrastructure, Launch Year: Ongoing, Key Details: Finances capital construction of new school buildings, college halls, indoor sports complexes, and cultural centers. Coverage: Educational institutions and sports athletes UT-wide, Latest Budget: (Capital Outlay on Education, Sports, Art & Culture BE 2026–27: Rs 43.71 Cr)
Scheme 4: General Direction, Secretariat & Educational Administration; Launch Year: Ongoing, Key Details: Covers administrative overheads, direction and administration, staff salaries, and miscellaneous educational support services under Demand No. 52. (Latest Budget: BE 2026-27: Rs. 17.26 crore)

Andaman Public Works Department (APWD)

Departmental Outlay: ~Rs 831.12 Cr

Scheme 1: Roads and Bridges Construction & Asset Management, Launch Year: Ongoing, Key Details: Executes the construction, widening, and maintenance of major district roads, arterial state highways, and inter-island bridge structures. Coverage: Commuters, freight operators, and transport corridors across island districts, Latest Budget: (BE 2026–27: Rs 256.36 Cr combined)
Scheme 2: Water Supply and Rural/Urban Sanitation Infrastructure, Launch Year: Ongoing (Jal Jeevan Mission Convergence), Key Details: Develops piped drinking water supply schemes, surface water treatment plants, check dams, and storage reservoirs across inhabited islands. Coverage: Rural and urban households across all island groups, Latest Budget: (BE 2026–27: Rs 231.54 Cr combined)
Scheme 3: Public Works & Government Housing Infrastructure, Launch Year: Ongoing, Key Details: Undertakes the construction, structural repair, and maintenance of civic administrative complexes, court buildings, and government residential quarters. Coverage: UT administrative departments and government staff across remote island outposts, Latest Budget: (BE 2026–27: Rs 343.22 Cr combined)

Shipping & Ports Department

Departmental Outlay: ~Rs 1,007.23 Cr

Scheme 1: Inter-Island & Mainland Shipping Operations, Launch Year: Ongoing, Key Details: Operates passenger and cargo vessel fleets connecting Port Blair with mainland hubs and inter-island routes. Coverage: Island commuters, cargo shippers, and mainland passengers, Latest Budget: (BE 2026–27: Rs 657.62 Cr combined)
Scheme 2: Port Infrastructure & Navigational Aids Development, Launch Year: Ongoing, Key Details: Funds the capital construction, deepening, dredging, and maintenance of commercial port jetties, passenger terminal halls, and deep-water berths. Coverage: Commercial shipping lines, cargo operators, and passenger ferries, Latest Budget: (BE 2026–27: Rs 343.48 Cr combined)
Scheme 3: Inland Water Transport & Creek Ferry Services, Launch Year: Ongoing, Key Details: Operates localized motor launch and creek ferry services across narrow marine channels and mangroves where road links do not exist. Coverage: Creek-dwelling populations and remote islanders, Latest Budget: (Inland Water Transport BE 2026–27: Rs 6.13 Cr)

Department of Electricity

Departmental Outlay: ~Rs 972.39 Cr

Scheme 1: Thermal & Diesel Power Grid Generation, Launch Year: Ongoing, Key Details: Manages island diesel/thermal power generation stations to deliver uninterrupted 24×7 electricity across isolated grids. Coverage: Domestic, commercial, and industrial consumers statewide, Latest Budget: (Power BE 2026–27: Rs 923.89 Cr) (A&N Electricity Department, n.d.)
Scheme 2: Capital Budget Heads on Power Projects & Grid Hardening, Launch Year: Ongoing, Key Details: Finances the conversion of overhead distribution lines to underground cables, sub-station capacity expansion, and smart metering installations. Coverage: Island power distribution network and sub-stations, Latest Budget: (Capital budget heads on Power Projects BE 2026–27: Rs 34.22 Cr)
Scheme 3: Renewable Energy & Off-Grid Micro-Grids, Launch Year: Ongoing, Key Details: Promotes solar PV systems, rooftop solar adoption, and battery energy storage systems (BESS) to reduce island diesel dependence. Coverage: Remote hamlets, public buildings, and commercial solar adopters, Latest Budget: (BE 2026–27: Rs 14.28 Cr combined)

Department of Fisheries

Departmental Outlay: ~Rs 31.75 Cr

Scheme 1: Marine Fisheries Development & Boat Motorisation Subsidies, Launch Year: Ongoing, Key Details: Provides financial assistance and capital subsidies for motorizing traditional fishing craft, procuring safety transponders, and acquiring deep-sea fishing gear. Coverage: Marine fishers and traditional fishing communities, Latest Budget: (Fisheries BE 2026–27: Rs 26.04 Cr)
Scheme 2: Capital Budget Heads on Fisheries Infrastructure & Cold Chain, Launch Year: Ongoing, Key Details: Funds the capital construction of fish landing centers, ice plants, cold storage units, and hygienic fish retail markets at harbor points. Coverage: Fishers, seafood processors, and fish vendors across island harbors, Latest Budget: (Capital Budget Heads on Fisheries BE 2026–27: Rs 5.71 Cr)

Animal Husbandry and Veterinary Services Department

Departmental Outlay: ~Rs 70.11 Cr

Scheme 1: Veterinary Healthcare & Livestock Disease Control, Launch Year: Ongoing, Key Details: It supports veterinary hospitals and polyclinics with essential animal pharmaceuticals and diagnostic tools. Coverage: Livestock farmers and cattle rearers statewide, Latest Budget: (Animal Husbandry BE 2026–27: Rs 64.99 Cr)
Scheme 2: Capital Budget Heads on Animal Husbandry Infrastructure & Breeding Farms, Launch Year: Ongoing, Key Details: Supports capital construction of composite livestock farms, poultry hatcheries, and veterinary dispensaries.Coverage: Rural livestock farmers and poultry rearers, Latest Budget: (Capital Budget Heads on Animal Husbandry BE 2026–27: Rs 5.12 Cr)

Department of Forest

Departmental Outlay: ~Rs 391.82 Cr

Scheme 1: Forest Conservation, Protected Area Management & Wildlife Protection, Launch Year: Ongoing, Key Details: Manages forest cover, national parks, and coastal marine sanctuaries. Coverage: Protected forest areas, sanctuaries, and ecological reserves, Latest Budget: (Forestry and Wild Life BE 2026–27: Rs 358.52 Cr)
Scheme 2: Capital Budget Heads on Forest Infrastructure & Sustainable Eco-Tourism, Launch Year: Ongoing, Key Details: It modernizes forest nursery facilities and timber depots while promoting low-impact eco-tourism. Coverage: Eco-tourists, local guide SHGs, and forest personnel, Latest Budget: (Capital Budget Heads on Forestry and Wild Life BE 2026–27: Rs 32.92 Cr)
Scheme 3: Ecology & Environmental Protection Framework, Launch Year: Ongoing, Key Details: Conducts coastal water quality monitoring, coral reef conservation, and environmental vulnerability assessments along island shorelines. Coverage: Island coastal ecosystems and marine zones, Latest Budget: (Ecology and Environment BE 2026–27: Rs 0.38 Cr)

Department of Police

Departmental Outlay: ~Rs 558.52 Cr

Scheme 1: Law & Order Maintenance & Coastal Police Operations, Launch Year: Ongoing, Key Details: Maintains public order, crime prevention, traffic control, and marine coastal security patrols across inhabited islands. Coverage: Citizens, tourists, and maritime coastal boundaries statewide, Latest Budget: (Police BE 2026–27: Rs 537.84 Cr)
Scheme 2: Capital Budget Heads on Police Infrastructure & Cyber Crime Units, Launch Year: Ongoing, Key Details: Funds capital construction of modern police station complexes, forensic science laboratories, and residential quarters. Coverage: Island police force and district police headquarters, Latest Budget: (Capital Budget Heads on Police BE 2026–27: Rs 20.68 Cr)

Department of Rural Development & Panchayat Raj

Departmental Outlay: ~Rs 142.65 Cr

Scheme 1: Rural Livelihoods & MGNREGS Convergence, Launch Year: Ongoing, Key Details: Implements rural wage employment programs, self-help group capacity building, and community asset creation across Gram Panchayats. Coverage: Rural job-seeking households and Gram Panchayats, Latest Budget: (Other Rural Development Programmes BE 2026–27: Rs 126.81 Cr)
Scheme 2: Special Programmes for Rural Development & Land Reforms, Launch Year: Ongoing, Key Details: Supports targeted rural development interventions, agricultural plot subdivision, and land record updates. Coverage: Rural landholders, artisans, and Panchayati Raj Institutions, Latest Budget: (BE 2026–27: Rs 14.31 Cr combined)
Scheme 3: Capital Budget Heads on Rural Infrastructure & Solid Waste Processing, Launch Year: Ongoing, Key Details: Finances capital construction of Gram Panchayat Ghars, rural market sheds, and solid/liquid waste management processing units. Coverage: Village communities and Gram Panchayats across island blocks, Latest Budget: (Capital Budget Heads on Other Rural Development Programmes BE 2026–27: Rs 1.53 Cr)

Department of Civil Supplies

Departmental Outlay: ~Rs 39.01 Cr

Scheme 1: Targeted Public Distribution System (TPDS) & Civil Supplies Administration, Launch Year: Ongoing, Key Details: Manages the distribution of subsidized essential foodgrains to cardholders via Fair Price Shops. Coverage: BPL, Antyodaya, and priority households statewide, Latest Budget: (Civil Supplies BE 2026–27: Rs 22.31 Cr)
Scheme 2: Buffer Foodgrain Storage & Warehouse Operations, Launch Year: Ongoing, Key Details: Supports buffer foodgrain storage logistics to ensure uninterrupted ration supply during monsoon sea closures. Coverage: Fair Price Shops and supply depots across remote island clusters, Latest Budget: (Food Storage and Warehousing BE 2026–27: Rs 14.08 Cr)
Scheme 3: Capital Budget Heads on Grain Godowns & Storage Infrastructure, Launch Year: Ongoing, Key Details: Finances capital construction of storm-resistant food warehouses and civil supply godowns. Coverage: Storage depots and civil supply logistics networks, Latest Budget: (Capital Budget Heads on Food Storage and Warehousing BE 2026–27: Rs 2.62 Cr)

Department of Cooperatives

Departmental Outlay: ~Rs 19.29 Cr

Scheme 1: Cooperative Society Administration & Credit Subvention, Launch Year: Ongoing, Key Details: It provides credit subvention support and working capital loans for agricultural and allied cooperative societies. Coverage: Member-farmers, credit cooperatives, and consumer stores statewide, Latest Budget: (Co-operation BE 2026–27: Rs 17.95 Cr)
Scheme 2: Capital Budget Heads on Cooperative Infrastructure & Storage Godowns, Launch Year: Ongoing, Key Details: Funds capital construction of cooperative office facilities, storage godowns, and cold storage infrastructure. Coverage: Cooperative societies, Large-sized Adivasi Multi-Purpose Cooperative Societies (LAMPS), and rural farming members, Latest Budget: (Capital Budget Heads on Co-operation BE 2026–27: Rs 1.34 Cr)

Department of Tourism

Departmental Outlay: ~Rs 47.00 Cr

Scheme 1: Tourism Promotion, Marketing & Eco-Circuit Publicity, Launch Year: Ongoing, Key Details: Promotes island eco-tourism, water sports, and historical heritage circuits nationally and internationally. Coverage: Domestic and international tourists, tour operators, and resort owners, Latest Budget: (Tourism BE 2026–27: Rs 37.95 Cr)
Scheme 2: Capital Budget Heads on Tourism Amenities & Water Sports Infrastructure, Launch Year: Ongoing, Key Details: Finances capital development of public beach amenities, jetty passenger waiting halls, and water sports complexes. Coverage: Major tourist destinations across South Andaman and Ritchie’s Archipelago, Latest Budget: (Capital Budget Heads on Tourism BE 2026–27: Rs 9.05 Cr)

Department of Industries

Departmental Outlay: ~Rs 26.19 Cr

Scheme 1: Village & Small Scale Enterprise Development, Launch Year: Ongoing, Key Details: It facilitates credit linkages and margin money assistance under village industry schemes to spur local employment. Coverage: Micro-entrepreneurs, coir workers, and traditional artisans, Latest Budget: (Village and Small Industries BE 2026–27: Rs 24.47 Cr)
Scheme 2: Industrial Infrastructure Development & MSME Support, Launch Year: Ongoing, Key Details: Supports industrial estate maintenance, common facility testing centers, and MSME startup incentives. Coverage: MSME units and industrial estate tenants at Wimberlygunj and Port Blair, Latest Budget: (BE 2026–27: Rs 1.72 Cr combined)

Tribal Welfare Department

Departmental Outlay: ~Rs. 20.27 Cr

Scheme 1: Particularly Vulnerable Tribal Groups (PVTGs) Development and Protection Scheme, Launch Year: Ongoing, Key Details: Planning socio-economics development in a comprehensive manner while retaining the culture and heritage of the communities by adopting habitat level development approach for the five PVTGs (Jarawa, Sentinelese, Great Andamanese, Onge, and SHompen). Coverage: Tribal reserves and protected indigenous habitats across South Andaman, Middle Andaman and Nicobar districts. Latest Budget Head: information is not available
Scheme 2: Tribal Sub-Plan Infrastructure and Educational Support, Launch Year: Ongoing, Key Details: Provides stipends, hostel facilities, educational aids, and vocational training for tribal youth across Nicobar and Andaman districts. Coverage: Tribal students and Nicobarese communities across all island blocks.

Department of Social Welfare

Departmental Outlay: ~ Rs. 133.49 Cr

Scheme 1: Mission Saksham ANganwadi and Poshan 2.0, Launch Year: 1975; Ongoing, Key Details: Delivers supplementary nutrition, immunisation, health check-ups, and pre-scheel non-formal education through Anganwadi centers. Coverage: children (0-6 years), pregnant women, and lactating mothers. Latest Budget Head: Information is not available
Scheme 2: State Social Security Pension Scheme, Launch Year: Ongoing, Key Details: Provides Rs. 1500/month social security pension for senior citizens (60+), widows, and disabled persons (40%+)

Youth Affairs, Sports and Culture Department

Departmental Outlay: ~ Rs. 17.26 Cr

Scheme 1: Khelo India Centres , Launch Year: Ongoing, Key Details: Catches talent early and creates professional sports pathways that leverages the geographical strengths using water sports alongside traditional team and combat disciplines. Coverage: 8 functional Khelo India Centres mapped across three districts to ensure access for tribal and remote rural youth. Latest Budget Heads: Information is not available

Department of Transport

Departmental Outlay: ~ Rs. 88.5 Cr

Scheme 1: State Transport Undertaking (STU) Public Bus Operations, Launch Year: Ongoing, Key Details: Operates and maintains public bus fleets providing road connectivity across South, Middle, and North Andaman Islands. Coverage: Commuters and rural populations along the Great Andaman Trunk Road and island feeder routes. Latest Budget: Information is not available

Relief and Rehabilitation & Disaster Management Department

Departmental Outlay: ~ Rs. 7.69 Cr

Scheme 1: Disaster Preparedness, Early Warning & Capacity Building (Aapda Mitra), Launch Year: Ongoing, Key Details: Trains community volunteers (Aapda Mitras/Sakhis), upgrades Tsunami Early Warning Sirens/CAP Sachet alert systems, and modernizes Emergency Operation Centres (EOCs). Coverage: Coastal communities and first responders across all three island districts. Latest Budget: Information is not available
Scheme 2: State Disaster Response Fund (SDRF) Financial Relief Grants, Launch Year: Ongoing, Key Details: Delivers immediate ex-gratia relief and financial compensation for loss of life, crop/livestock damage, and house destruction caused by natural disasters. Coverage: Calamity-affected households statewide. Latest Budget: Information is not available

Department of Information Technology

Departmental Outlay: ~ Rs. 138.69 Cr (Other Administrative Services )

Scheme 1: Digital Village Project, Launch Year: Ongoing, Key Details: Commissions submarine optical fibre cable between Chennai and Andaman & Nicobar Islands for faster roll-out of fixed line broadband/internet services, mobile services (4G, 5G) and other high speed data services in the islands. Coverage: 2,312 Kms of OFC. Latest Budget: Information is not available.
Scheme 2: State Data Centre (SDC) Project, Launch Year: Ongoing, Key Details: Under the National e-Governance Plan (NeGP), SDC provides consolidated services, applications and infrastructure to provide G2G, G2C and G2B services. Coverage: Citizens and administrative departments statewide. Latest Budget: Information is not available

Department of Science and Technology

Departmental Outlay: ~ Rs. 5.5 Cr

Scheme 1: Island Science Promotion & Technology Transfer, Launch Year: Ongoing, Key Details: Promotes applied scientific research, science popularization among students, and adaptation of eco-friendly technologies suitable for fragile island ecosystems. Coverage: Educational institutions and local innovators statewide.
Scheme 2: Coastal Zone Management & Environmental Climate Adaptation, Launch Year: Ongoing, Key Details: Supports coastal erosion studies, spatial mapping support, and climate vulnerability assessments across island shorelines. Coverage: Marine coastal zones and vulnerable island habitats.

Department of Labour Employment and Training

Departmental Outlay: ~ Rs. 21.22 Cr

Scheme 1: Industrial Training Institutes (ITIs) & Vocational Skill Training, Launch Year: Ongoing, Key Details: Operates government ITIs offering technical skill courses in trades like electrical, mechanical, plumbing, and IT to enhance local employability. Coverage: Youth and job seekers across island districts. Latest Budget: Information is not available
Scheme 2: labour Welfare Enforcement & Employment Exchange Services, Launch Year: Ongoing, Key Details: Enforces statutory labor laws, minimum wages, and workplace safety norms while managing job registration databases. Coverage: Formal and informal sector workers statewide. Latest Budget: Information is not available

Department of Revenue

Departmental Outlay: ~Rs. 53.95 Cr

Scheme 1: Land Records Modernization & Survey Resettlement, Launch Year: Ongoing, Key Details: Digitizes land registers, implements GIS-based land mapping, and updates land ownership rights across rural and urban settlements through Dweep Bhoomi, an official web portal. Coverage: Property owners and landholders across all three districts. Latest Budget: Information is not available
Scheme 2: District & Sub-Divisional Administrative Services, Launch Year: Ongoing, Key Details: Finances the administrative infrastructure and public service delivery at District Collectorates, Sub-Divisions, and Tehsil offices. Coverage: General public across all administrative divisions. Latest Budget: Information is not available

Department of Information and Publicity

Departmental Outlay: ~ Rs. 6.39 Cr

Scheme 1: Media Outreach, Public Relations & Publication Services, Launch Year: Ongoing, Key Details: Manages official press releases, government bulletins, developmental documentaries, and media coverage of UT schemes. Coverage: Media agencies and the general public statewide.

Scheme 2: Public Awareness & Development Campaign Exhibitions, Launch Year: Ongoing, Key Details: Organizes developmental exhibitions, information kiosks, and awareness campaigns on major central and UT developmental programs. Coverage: Citizens across urban and rural island blocks.

Department of Finance

Departmental Outlay: ~ Rs. 14.22 Cr

Scheme 1: Pradhan Mantri Jan Dhan Yojana, Launch Year: 2014, Key Details: to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. Coverage: Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

Directorate of Economics and Statistics

Department Outlay: ~ Rs. 29.52 Cr

Scheme 1: Collection of Statistics, Economic Census & Price Indexing, Launch Year: Ongoing, Key Details: Conducts periodic economic censuses, consumer price index (CPI) monitoring, agricultural statistics collection, and state income estimation. Coverage: Economic and statistical data collection statewide.

Anti Corruption and Vigilance Department

Departmental Outlay: ~ Rs. 1.43 Cr

Scheme 1: Administrative Oversight & Anti-Graft Enforcement, Launch Year: Ongoing, Key Details: Investigates corruption complaints, conducts preventive vigilance audits, and enforces transparency across public departments. Coverage: UT administration and public service delivery statewide.

Official Language Department

Departmental Outlay: ~ Rs. 138.9 Cr (Other Administrative Services)

Scheme 1: Official Language (Hindi) Training & Implementation, Launch Year: Ongoing, Key Details: Organizes Hindi workshops, translation services, and incentive schemes to promote the official language across UT government Secretariats. Coverage: UT administrative personnel and departments.

Conclusion

The Andaman and Nicobar Islands present a distinct developmental and administrative landscape as an island Union Territory operating without a local legislature. Because its public services and infrastructure rely primarily on direct financial allocations through Demand No. 52 under the Ministry of Home Affairs, targeted scheme delivery is vital to sustaining the archipelago’s socioeconomic well-being.

The budgetary outlay of Rs. 6681 crore for the financial year is a 11% decrease from the previous year’s Revised Estimates. In such a budget contraction scenario, especially where 90% of the outlay is consumed by revenue expenditure, capital expenditure for infrastructural investments is crowded out. To avoid infrastructure stagnation, the UT must prioritize capital allocation toward high-impact, climate-resilient infrastructure rather than expanding recurring administrative overheads.

Further, while core public sector domains, ranging from inter-island maritime shipping and thermal power grid management to healthcare infrastructure and local law enforcement, continue to receive significant operational support, effective execution requires ongoing policy alignment. However, development should be pursued dynamically by promoting socio-economic infrastructure and protecting the autochthonous populations, flora and fauna. Implementing departmental framework allocations tailored to the needs of the ecosystem, consolidating overlapping agricultural and rural development initiatives into broader central programs, and balancing operational expenses with capital infrastructure investment will be key to driving sustainable, resilient growth across all island districts.

References

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About the Contributor

Amrutha Lahari Kolluru is a graduate in M. A. Environmental Economics from Madras School of Economics. Passionate about policy analysis, climate research, sustainability and their integration, she aspires to create evidence-based solutions for environmental challenges.

Reviewers

Sandra Menon

Ayan Bordoloi

Acknowledgement

The author extends her sincere gratitude to the IMPRI team for their invaluable guidance throughout the process.

Disclaimer

This article/ document is an academic synthesis based on the Union Budget 2026-27 estimates under Demand No. 52 (Ministry of Home Affairs) and official publications from the Andaman and Nicobar Administration. The departmental outlays and scheme-level mapped budget heads are compiled for analytical and educational purposes only. For official administrative orders, exact financial sanction details, or current implementation guidelines, please refer to the official portals of the Ministry of Home Affairs or the Andaman & Nicobar Administration.

Policy UpdateAmrutha Lahari Kolluru