Chandigarh, March 2 (NationPress) Strengthening the state's dedication to fiscal responsibility and growth through development, Haryana Chief Minister Nayab Singh Saini unveiled the state's Budget for 2026-27 on Monday. He highlighted seven essential pillars that emphasize disciplined financial management and a significant increase in capital investment.

According to CM Saini, the most telling measure of a government's financial management is the fiscal deficit.

“From 2005 to 2014, Haryana’s fiscal deficit surged from Rs 286 crore to Rs 12,586 crore—a staggering nearly 44-fold increase. In contrast, during the decade from 2014 to 2024, the fiscal deficit grew by merely 2.75 times. The Fiscal Responsibility and Budget Management Act, 2003 stipulates that a state’s fiscal deficit should stay below three percent of its GDP for that year,” he stated.

The Chief Minister, also serving as Finance Minister, noted that in 2014-15, the fiscal deficit was recorded at 2.88 percent of GDP, which has since improved to 2.83 percent in 2024-25.

In the previous budget, the government aimed to further lower this figure to 2.67 percent.

He remarked that previous years experienced uncontrolled fiscal deficit expansion; however, since 2014, the current administration has prioritized financial discipline. The fiscal deficit was 2.88 percent of GSDP in 2014-15.

Thanks to ongoing fiscal reforms and wise management, it has been reduced to 2.66 percent for 2025-26 and is expected to be further decreased to 2.65 percent in 2026-27, comfortably within the legal limit.

Highlighting the government's commitment to asset creation, Saini pointed out the consistent and notable increase in capital expenditure. In 2004-05, capital expenditure was Rs 1,105 crore, making up 7.1 percent of the total budget.

By 2014-15, this figure had risen to Rs 4,558 crore, accounting for 7.4 percent. In 2024-25, capital outlay saw a sharp increase to Rs 15,642 crore, representing 8.9 percent of the budget. Revised estimates for 2025-26 indicate it will reach Rs 21,207 crore, making up 10.5 percent.

For 2026-27, capital expenditure is proposed at Rs 28,205 crore, constituting 12.6 percent of the total budget, marking a historic growth aimed at enhancing infrastructure and development projects. He further noted that effective capital expenditure has experienced even greater growth.

From Rs 4,636 crore in 2014-15, which represented 7.5 percent of the total budget, it has escalated to Rs 27,650 crore in 2025-26, comprising 13.6 percent—an increase of 6.1 percentage points over eleven years.

For 2026-27, effective capital expenditure is projected at Rs 35,216 crore, making up 15.7 percent of the overall budget. Labeling it a remarkable milestone, the Chief Minister noted that for the first time in the state's history, nearly 98 percent of the total budget is anticipated to be utilized.

In 2014-15, with a total budget of Rs 73,301 crore, actual spending was Rs 61,903 crore, equating to a utilization rate of 84.45 percent.

For 2025-26, the total budget was Rs 205,017 crore, and by March 31, 2026, expenditures are estimated to be around Rs 202,000 crore, leading to a utilization rate of approximately 98 percent—an achievement reflecting enhanced financial planning and implementation.

Regarding the revenue deficit, Saini indicated it was 1.66 percent of total budget expenditure in 2004-05, which ballooned to 13.4 percent by 2014-15. By 2024-25, it had decreased to 11 percent.

For 2025-26, the estimated revenue deficit is 8.98 percent, significantly down from 2014-15, and for 2026-27, the government aims to reduce it further to 5.90 percent of total budget expenditure.

He added that the effective revenue deficit, which was 1.9 percent of GSDP in 2014-15, fell to 1.16 percent in 2024-25. Revised estimates for 2025-26 suggest it will be 0.86 percent, with a target of just 0.41 percent for 2026-27, demonstrating ongoing fiscal consolidation.