Haryana Chief Minister Sh. Nayab Singh Saini today presented the State Budget for the year 2026–27 in the Vidhan Sabha in his capacity as Finance Minister,
Chandigarh, March 2- Reinforcing the State’s commitment to fiscal prudence and development-led growth, Haryana Chief Minister, Nayab Singh Saini, who also holds the portfolio of Finance Minister, on Monday presented the Haryana Budget for 2026–27 during the ongoing Budget Session of the State Vidhan Sabha, placing special emphasis on seven key pillars that underscore disciplined financial management and a sharp rise in capital investment.
Sh. Nayab Singh Saini said that the best indicator of a government’s financial management is the fiscal deficit. Between 2005 and 2014, Haryana’s fiscal deficit increased from Rs. 286 crore to Rs. 12,586 crore – nearly a 44-fold increase. However, in the 10 year period from 2014 to 2024, the fiscal deficit increased only 2.75 times. The Fiscal Responsibility and Budget Management Act, 2003, states that the fiscal deficit should be below 3 percent. This applies to a state’s GDP each year. He said that in 2014–15, our fiscal deficit stood at 2.88 percent of GDP, and in 2024–25, it declined to 2.83 percent. In the previous Haryana Budget , the government had set a target of further reducing it to 2.67 percent.
Haryana Budget : Saini Highlights Fiscal Discipline, Historic Surge in Capital Expenditure
The Chief Minister stated that earlier years experienced uncontrolled expansion in fiscal deficit. The present government has given the highest priority to financial discipline since 2014. He said the fiscal deficit stood at 2.88 per cent of GSDP in 2014–15. Through sustained fiscal reforms and prudent management, it has been brought down to 2.66 per cent in 2025–26 and is proposed to be further contained at 2.65 per cent in 2026–27, comfortably within the statutory limit.
Emphasising the government’s focus on asset creation, Sh. Nayab Singh Saini highlighted the steady and significant rise in capital expenditure. In 2004–05, capital expenditure stood at Rs 1,105 crore, constituting 7.1 per cent of the total budget. By 2014–15, it increased to Rs 4,558 crore, accounting for 7.4 per cent. In 2024–25, capital outlay rose sharply to Rs 15,642 crore, representing 8.9 per cent of the budget. Revised estimates for 2025–26 place it at Rs 21,207 crore, amounting to 10.5 per cent.For 2026–27, the government has proposed Rs 28,205 crore for capital expenditure, constituting 12.6 per cent of the total budget and marking a historic expansion to accelerate infrastructure and development projects.
He further informed that effective capital expenditure has recorded even sharper growth. From Rs 4,636 crore in 2014–15, representing 7.5 per cent of the total budget, it has risen to Rs 27,650 crore in 2025–26, accounting for 13.6 per cent, an increase of 6.1 percentage points over eleven years. For 2026–27, effective capital expenditure is estimated at Rs 35,216 crore, which will constitute 15.7 per cent of the total outlay.
98% Budget Utilisation Marks Historic First; Revenue Deficit Set to Drop to 5.9%
The Chief Minister called it a landmark achievement. He said that this is the first time in the State’s history. Nearly 98 per cent of the total budget is expected to be utilised. In 2014–15, against a total budget of Rs 73,301 crore, actual expenditure was Rs 61,903 crore, reflecting utilisation of 84.45 per cent. For 2025–26, the total budget was Rs 2,05,017 crore. By March 31, 2026, expenditure is estimated at nearly Rs 2,02,000 crore. This translates into approximately 98 per cent utilisation. It is a testament to improved financial planning and execution.
On revenue deficit, Sh. Nayab Singh Saini said it stood at 1.66 per cent of total budget expenditure in 2004–05, which increased eightfold to 13.4 per cent in 2014–15. By 2024–25, it declined to 11 per cent. In 2025–26, it is estimated at 8.98 per cent. This is significantly lower than in 2014–15. For 2026–27, the government has set a target to reduce it further to 5.90 per cent of total budget expenditure.
He said that the effective revenue deficit, which was 1.9 per cent of GSDP in 2014–15, declined to 1.16 per cent in 2024–25. The government has placed the revised estimate for 2025–26 at 0.86 per cent and has set a target of just 0.41 per cent for 2026–27, reflecting sustained fiscal consolidation.
PSU Losses Fall Sharply, Profits Triple; Budget Gap Narrows to 1.07%
Nayab Singh Saini also highlighted improvements in public sector undertakings. In 2014–15, 22 undertakings were incurring losses; this number has reduced to 18 in 2024–25. The total losses of these undertakings were Rs 2,889 crore in 2014–15. They have now declined to Rs 1,012 crore. This shows nearly a threefold reduction. At the same time, profit-making undertakings have increased from 20 in 2014–15, with total profits of Rs 450.16 crore, to 24 in 2024–25, with total profits rising to Rs 1,205.14 crore, almost three times higher.
He further shared that in 2004–05, revised estimates showed a 10.37 per cent shortfall compared to budget estimates. This gap reduced to 5.04 per cent in 2024–25 and has narrowed further to just 1.07 per cent in 2025–26, demonstrating improved accuracy in financial forecasting and strengthened fiscal discipline.
The Chief Minister reiterated the 2026–27 Budget. It reflects the Haryana Government’s firm resolve to maintain financial stability. It also aims to accelerate development across the State.
About the Author
