Haryana Budget 2026-27: Saini Targets Development, Fiscal Consolidation, and High Utilisation

March 2, 2026

Chandigarh – Reinforcing Haryana’s commitment to disciplined financial management and development-led growth, Chief Minister Nayab Singh Saini on Monday presented the state Budget for 2026-27. The CM, who also holds the Finance portfolio, highlighted seven key pillars of the budget aimed at maintaining fiscal prudence while boosting capital investment.

Saini noted that a government’s fiscal discipline is best reflected in its fiscal deficit. Between 2005 and 2014, Haryana’s fiscal deficit rose sharply from Rs 286 crore to Rs 12,586 crore, a nearly 44-fold increase. However, in the 10 years from 2014 to 2024, the deficit increased only 2.75 times. According to the Fiscal Responsibility and Budget Management Act, 2003, a state’s fiscal deficit should remain below 3% of its GDP.

In 2014-15, Haryana’s fiscal deficit stood at 2.88% of GSDP, which declined to 2.83% in 2024-25. The previous budget set a target to reduce it further to 2.67%. Saini emphasised that prior governments allowed uncontrolled deficit expansion, while the present government has prioritised financial discipline since 2014. The fiscal deficit for 2025-26 is estimated at 2.66%, with a further reduction to 2.65% projected for 2026-27, comfortably within statutory limits.

Historic Increase in Capital Expenditure

The budget places strong emphasis on asset creation and infrastructure development. In 2004-05, capital expenditure was Rs 1,105 crore, or 7.1% of the total budget. By 2014-15, it rose to Rs 4,558 crore (7.4%), and in 2024-25, it increased sharply to Rs 15,642 crore (8.9%). The revised estimates for 2025-26 show capital outlay at Rs 21,207 crore, or 10.5% of the budget. For 2026-27, the proposed capital expenditure is Rs 28,205 crore, accounting for 12.6% of the total budget, marking a historic expansion to accelerate infrastructure and development projects.

Effective capital expenditure has grown even more impressively—from Rs 4,636 crore in 2014-15 (7.5% of the total budget) to Rs 27,650 crore in 2025-26 (13.6%), an increase of 6.1 percentage points over eleven years. For 2026-27, effective capital expenditure is estimated at Rs 35,216 crore (15.7% of the total outlay), underscoring the government’s commitment to development and efficient utilisation of funds.

Near-Total Budget Utilisation Achieved

The Chief Minister highlighted that nearly 98% of the total budget is expected to be utilised for 2025-26 and 2026-27, a first in Haryana’s history. In 2014-15, against a total budget of Rs 73,301 crore, only Rs 61,903 crore (84.45%) was utilised. For 2025-26, with a total budget of Rs 205,017 crore, expenditure is estimated at nearly Rs 202,000 crore by March 31, 2026, reflecting improved planning, execution, and financial discipline.

Declining Revenue Deficit and Fiscal Consolidation

Revenue deficit, which stood at 1.66% of total budget expenditure in 2004-05, had increased eightfold to 13.4% in 2014-15. By 2024-25, it declined to 11%, and for 2025-26 it is estimated at 8.98%. The government aims to further reduce revenue deficit to 5.90% of total budget expenditure in 2026-27.

Similarly, effective revenue deficit, which was 1.9% of GSDP in 2014-15, declined to 1.16% in 2024-25. Revised estimates for 2025-26 place it at 0.86%, while the 2026-27 target is set at just 0.41%, reflecting sustained fiscal consolidation and disciplined financial governance.

Commitment to Development-Led Growth

The CM highlighted that the Haryana government has maintained a careful balance between fiscal discipline and capital investment. The sharp rise in capital expenditure, effective utilisation of funds, and reduction in fiscal and revenue deficits reflect a government that prioritises both financial prudence and accelerated development across sectors.

By ensuring disciplined management of the state’s finances, expanding infrastructure investments, and efficiently utilising nearly the entire budget, the 2026-27 Haryana budget seeks to foster sustained growth, improved public services, and enhanced economic opportunities for the people of the state.