Dehradun: The Uttarakhand government has presented a budget of ₹1,11,703 crore for the financial year 2026–27. The government led by Chief Minister Pushkar Singh Dhami says the budget has been prepared to accelerate the state’s development, increase employment opportunities, and provide relief to farmers and the poor.
In this budget, priority has been given to sectors such as roads, health, education, rural development, and tourism. The state government believes that increasing investment in these sectors will strengthen the state’s economy and increase people’s income.
Understanding the budget in simple terms
In simple words, a budget is a plan in which the government decides how much money it will receive during the year and how that money will be spent.
According to government estimates, the state will receive about ₹1,10,143 crore from different sources in 2026–27, while total expenditure is estimated to be ₹1,11,703 crore. This means government spending will be slightly higher than its income, and the gap will be covered by borrowing.
Currently, Uttarakhand already has a debt of more than ₹80,000 crore.
Where the government gets money from
The state government’s income comes from several sources. The largest share comes from taxes. Apart from this, funds from the central government, fees from government services, and loans taken when necessary also form part of the state’s income.
According to the budget, the state is expected to receive about ₹43,327 crore from taxes in 2026–27. This includes both the state’s own taxes and its share from central taxes.
Major income from GST and other taxes
The largest revenue for the state comes from GST. When people buy goods or companies conduct business, GST is applied and a portion of it goes to the state government.
Apart from this, VAT on petrol and diesel, excise duty on liquor, stamp duty on property transactions, and taxes from vehicle registrations also increase government revenue.
Income from government resources
Apart from taxes, the government also earns revenue from forests, mining, royalties from power projects, and tourism-related fees.
Together, these sources are expected to generate about ₹4,395 crore.
Significant support from the central government
Financial assistance from the central government is very important for hill states like Uttarakhand.
According to the budget, the state is expected to receive around ₹15,903 crore as its share from central taxes. Additionally, about ₹18,227 crore is expected in the form of various grants and schemes.
Loans taken when necessary
When government expenditure exceeds its income, the gap is filled by taking loans. The Uttarakhand government also borrows from the market when needed.
Loan money is generally used for development works and projects.
Where the government spends money
In the financial year 2026–27, total government expenditure is estimated at ₹1,11,703 crore.
Out of this, about ₹64,989 crore will be spent on routine government expenses, while ₹46,713 crore will be spent on development works.
Routine expenses include salaries of employees, pensions, office expenses, and social welfare schemes.
Large amount spent on interest payments
The government also has to pay interest on its existing debt every year. In this financial year, about ₹7,929 crore will be spent on interest payments.
Focus on roads and infrastructure
Being a mountainous state, roads and connectivity are among the biggest needs in Uttarakhand. Therefore, the government is continuously increasing investment in road construction, bridges, and connecting remote villages with roads.
The government believes that better roads will promote tourism, trade, and employment.
Departments receiving larger allocations
Several departments have received major allocations in this budget:
- Public Works Department – ₹2,501.91 crore
- Drinking Water Department – ₹1,827.91 crore
- Rural Development Department – ₹1,642.20 crore
- Energy Department – ₹1,609.43 crore
- Urban Development Department – ₹1,401.85 crore
- Secondary Education Department – ₹542.84 crore
Tourism will also increase the state’s income
The government believes that promoting tourism can significantly increase the state’s income. The Char Dham Yatra, Himalayan tourism, and adventure tourism are important for Uttarakhand’s economy.
Strengthening tourism infrastructure will also create new employment opportunities for local people.
