Chief Minister Pushkar Singh Dhami presented a Rs 1.11 lakh crore revenue surplus state budget on Monday for the financial year 2026-27, focusing on what he described as the “GYAN” model (Garib, Yuva, Annadata, Nari Shakti). Key highlights include a 25% increase in capital expenditure, significant allocations for infrastructure, tourism (Kumbh Mela), and women’s empowerment, indicating government’s present priorities. Some commentators have described it as oriented towards the coming assembly elections. The budget, according to the CM, aims at creating a “Viksit Uttarakhand” through increased investment in capital projects. This is a laudable objective if properly implemented with the required sincerity.
Appropriate importance has been given to Infrastructure & Development, with Rs 2,501.91 crore provided for the Public Works Department, Rs 1,827.91 crore for drinking water, and Rs 1,609.43 crore for energy. An impetus has been sought to be given to Tourism & Agriculture with Rs 10 crore each for Ganga Corridors in Haridwar and Rishikesh; and Rs 42 crore for “Mission Apple” to boost farmers’ income. The elevated corridor for the Kumbh Mela is also on the cards.
Other notable initiatives are in the Social Sector, with Rs 11,871 crore provided for education and sports, and a Rs19,692 crore gender budget for women-centric schemes. Also, Rs 1,300 crore for the Annapurti Scheme and substantial funds for PMAY (Rural/Urban) is expected to boost the social sector.
Of concern, of course, are the State Government’s Outstanding Liabilities: Uttarakhand’s outstanding debt is estimated to surpass Rs 94,666 crore for the 2024-25 fiscal year, with projections indicating it could exceed Rs 1 lakh crore by March 2027. The debt has seen consistent annual growth, largely driven by infrastructure development and revenue expenditures. The opposition has raised this issue in its criticism of the budget by asking whether this is sustainable and will not impact inflation rates. As a smaller, primarily Himalayan state, Uttarakhand often faces higher debt ratios compared to larger states due to a smaller, less diversified revenue base. As such, the state’s fiscal health needs to be monitored closely, with a focus on balancing capital expenditure for infrastructure with rising debt servicing.
Of course, there is much more to the budget than the particular aspects mentioned here, the impact of which will take some time to understand. This analysis will have to be done keeping in mind whether the state’s growing economy is the result of the government’s planned efforts, or due to the entrepreneurial spirit of the people. If it is the latter, then it is understandable why there is so much unregulated growth. Hopefully, in the implementation, a proper balance will be achieved. Overall, however, there is cause for optimism that the state is generally on the right path.
