Chandigarh, March 2 – Reinforcing Haryana’s commitment to fiscal prudence and development-led growth, Chief Minister Nayab Singh Saini presented the state’s budget for 2026-27 on Monday, emphasizing seven key pillars that underscore disciplined financial management and a significant increase in capital investment.
CM Saini stated that a government’s financial management is best reflected in its fiscal deficit.
“Between 2005 and 2014, Haryana’s fiscal deficit increased from ₹286 crore to ₹12,586 crore – nearly a 44-fold increase. However, from 2014 to 2024, the fiscal deficit increased by only 2.75 times. According to the Fiscal Responsibility and Budget Management Act, 2003, a state’s fiscal deficit should remain below three per cent of its GDP for that year.”
The Chief Minister, who also holds the portfolio of Finance Minister, said that in 2014-15, the fiscal deficit stood at 2.88 per cent of GDP, and in 2024-25, it declined to 2.83 per cent.
In the previous budget, the government had set a target to further reduce it to 2.67 per cent.
The Chief Minister stated that in earlier years, there was uncontrolled expansion in the fiscal deficit; since 2014, the present government has prioritized financial discipline. He said that 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 projected to be further contained at 2.65 per cent in 2026-27, comfortably within the statutory limit.
Emphasizing the government’s focus on asset creation, Saini highlighted the steady and significant rise in capital expenditure. In 2004-05, capital expenditure stood at ₹1,105 crore, constituting 7.1 per cent of the total budget.
By 2014-15, it increased to ₹4,558 crore, accounting for 7.4 per cent. In 2024-25, capital outlay rose sharply to ₹15,642 crore, representing 8.9 per cent of the budget. Revised estimates for 2025-26 place it at ₹21,207 crore, amounting to 10.5 per cent.
For 2026-27, capital expenditure has been proposed at ₹28,205 crore, constituting 12.6 per cent of the total budget, marking a historic expansion aimed at accelerating infrastructure and development projects. He stated that effective capital expenditure has recorded even sharper growth.
From ₹4,636 crore in 2014-15, representing 7.5 per cent of the total budget, it has risen to ₹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 ₹35,216 crore, constituting 15.7 per cent of the total outlay. Calling it a landmark achievement, the Chief Minister said that for the first time in the state’s history, nearly 98 per cent of the total budget is expected to be utilized.
In 2014-15, against a total budget of ₹73,301 crore, actual expenditure was ₹61,903 crore, reflecting utilization of 84.45 per cent.
For 2025-26, the total budget was ₹205,017 crore, and by March 31, 2026, expenditure is estimated at nearly ₹202,000 crore, translating into approximately 98 per cent utilisation – a testament to improved financial planning and execution.
On revenue deficit, 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, significantly lower than in 2014-15, and 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. Revised estimates for 2025-26 placed it at 0.86 per cent, and for 2026-27, the target has been set at just 0.41 per cent, reflecting sustained fiscal consolidation.
