Haryana Unveils Rs 2.23-Lakh-Crore Budget for 2026-27 with Focus on Debt Management and Development
In a significant fiscal announcement, Haryana Chief Minister Nayab Singh Saini presented a comprehensive budget of Rs 2.23 lakh crore for the financial year 2026-27 in the state assembly on Monday. The budget highlights the state's ongoing struggle with debt obligations, with a substantial 30% of the total allocation dedicated to debt servicing, underscoring limited fiscal flexibility.
Key Budgetary Allocations and New Initiatives
The budget speech, delivered over three hours by CM Saini—who wore a saffron-colored turban—outlined several ambitious projects aimed at boosting various sectors. Notable announcements include:
- Establishment of a new power distribution company specifically for the agriculture sector to enhance energy access for farmers.
- Creation of a Rs 100-crore Green Climate Resilience Fund to address environmental challenges and promote sustainability.
- Implementation of 20% reservation for Agniveers in the Haryana Police Force, supporting ex-servicemen integration.
- Development of 'Adarsh Pariksha Kendra' centers on a public-private partnership model to improve examination infrastructure.
- Formation of an Anti-Terrorist Squad (ATS) under an Inspector General-rank police officer to bolster security measures.
- Construction of 'Wedding City' complexes in Gurugram, Kharkhoda, and Pinjore, promoting the 'Wed in India' concept to boost tourism and local economy.
- Upgradation of the Rajiv Gandhi Sports Complex in Daulatabad into the state's first 'Para Sports Stadium', enhancing facilities for athletes with disabilities.
Fiscal Metrics and Economic Outlook
CM Saini provided detailed fiscal projections, revealing a revenue deficit of Rs 4,293.17 crore, which accounts for 2.65% of the state's GDP. Further breakdown shows a revenue deficit of 0.87%, an effective revenue deficit of 0.41%, capital expenditure at 1.86%, and effective capital expenditure at 2.32%. The fiscal deficit for 2025-26 is estimated at 2.66% of GDP, with expectations to limit it to 2.65% in 2026-27.
The total budget for 2025-26 was set at Rs 2,05,017 crore, with expenditures around Rs 2,02,000 crore. A critical revenue source remains the state's share from central taxes, projected at 1.361% from 2026 to 2031 as per the 16th Finance Commission recommendations.
Debt Servicing and Sectoral Allocations
Debt servicing emerges as the most significant expenditure, totaling Rs 65,368 crore. This includes interest payments of Rs 29,266.62 crore and public debt repayment of Rs 36,101.68 crore, highlighting the state's substantial financial commitments.
In terms of development spending, key sectors receive prioritized funding:
- Education and Sports: Rs 23,603.69 crore
- Health: Rs 14,007.28 crore
- Social Justice: Rs 17,250.72 crore
- Development & Panchayats: Rs 8,703.74 crore
- Home: Rs 8,475.01 crore
Infrastructure sectors like irrigation and public works maintain steady allocations, though energy spending sees a notable reduction. The budget pattern indicates a continued emphasis on welfare programs alongside managing debt burdens.
Focus Areas and Growth Initiatives
The budget showcases sharp increases in specific sectors, reflecting strategic priorities:
- Revenue and Disaster Management: +84.5%
- Co-operation: +70.4%
- MSME/Industries: +46.9%
- Youth Empowerment: +37.3%
These hikes suggest a push towards disaster preparedness, cooperative financing, and employment-driven growth. Additionally, health (+21.7%), rural development (+22.9%), and urban planning (+24.9%) register strong gains, emphasizing grassroots infrastructure and service delivery.
Additional Projects and Agricultural Boost
CM Saini announced several other initiatives to drive economic and social development:
- World Bank-funded Haryana Clean Air Project: Rs 2,716 crore assistance approved to combat air pollution across all districts by 2031.
- Water Secure Haryana Project: Rs 5,715 crore expected from World Bank by October 2026.
- Haryana AI Mission: Rs 474 crore anticipated for artificial intelligence initiatives.
- Agricultural Expansion: Proposal to make 1,40,000 additional acres cultivable in districts like Bhiwani, Rohtak, and Gurugram.
- Farmer Incentives: Bonus of Rs 2,000 per acre for switching from paddy to oilseeds and cotton; sugarcane incentive increased from Rs 3,000 to Rs 5,000 per acre.
- Rural Development: Establishment of Rural Haat Mandis for direct sale of local products; compensation under Mukhyamantri Bagwani Bima Yojana raised from Rs 40,000 to Rs 50,000 per acre.
- Veterinary Infrastructure: Rs 30 crore allocated for a Haryana Veterinary Epidemiology Centre in Hisar.
- Employment Support: Target to bring 300 loss-making Primary Agricultural Credit Societies into profit; allocation of Rs 4,000 crore worth of government works to labor and construction cooperative societies.
During his address, CM Saini also made political gestures by reading excerpts from Sikh scriptures and expressing gratitude to Sikh gurus, hinting at BJP's aspirations to expand influence in neighboring Punjab. The budget aims to balance fiscal responsibility with progressive development, setting a roadmap for Haryana's growth in the coming years.
