Uttarakhand Proposes ₹7,844.18 Crore Supplementary Budget for 2026–27, Focus on Development and Public Amenities
₹4,164.32 crore earmarked for capital expenditure; state proposes increasing local bodies’ share in tax revenue
Gairsain/Dehradun, 27 October: The Uttarakhand government has proposed a supplementary budget of ₹7,844.18 crore for the financial year 2026–27, with a focus on infrastructure development, road maintenance, energy, urban development and strengthening rural and urban local bodies. The budget, prepared for the Assembly session at Bhararisain in Gairsain, aims to provide additional financial resources for ongoing development projects and the expansion of public amenities across the state.
More than ₹4,164 crore proposed for capital expenditure
Of the total supplementary budget, ₹4,164.32 crore has been proposed under the capital expenditure head, while ₹3,679.86 crore is earmarked for revenue expenditure. Capital expenditure accounts for more than half of the proposed supplementary allocation, highlighting the emphasis on infrastructure and development-related works.
Uttarakhand’s original budget for 2026–27 stands at ₹1,11,703.21 crore. With the proposed supplementary allocation, the overall budget size would increase to ₹1,19,547.39 crore.
Additional resources proposed for local bodies
A key provision concerns rural and urban local bodies. In line with the recommendations of the Sixth State Finance Commission, the government has proposed increasing the share of state tax revenue allocated to local bodies from 10.5% to 12.5%.
An allocation of ₹721 crore has been proposed for this purpose. The additional resources are expected to support gram panchayats and urban local bodies in undertaking local development projects, improving civic amenities and meeting community-level requirements.
Infrastructure and energy projects receive priority
The supplementary budget proposes ₹500 crore in capital expenditure under the Special Assistance Scheme for Capital Investment (SASCI) to support infrastructure development.
In the energy sector, approximately ₹270 crore has been proposed across various heads, including the Khurpia Farm project and transmission and distribution infrastructure.
These provisions are intended to provide additional financial support to infrastructure-related projects and facilitate the implementation of development works.
Funding for urban development, police buildings and judicial infrastructure
Approximately ₹100 crore has been proposed for schemes financed by the Asian Development Bank (ADB) under the Urban Development Department. Another ₹55 crore has been proposed for the construction of residential and non-residential buildings for the police department.
The budget also includes approximately ₹22 crore for judicial infrastructure and ₹5 crore for the construction of panchayat buildings.
These allocations aim to strengthen institutional infrastructure and support the development of administrative and public-service facilities.
Road maintenance and rural development
For road connectivity and maintenance, ₹31 crore has been proposed for the Public Works Department, including maintenance works under the Pradhan Mantri Gram Sadak Yojana (PMGSY).
An additional ₹30 crore has been proposed for the Rural Development Department to support development-related activities in rural areas.
Focus on accelerating development projects
The proposed supplementary budget places emphasis on infrastructure, energy, road maintenance, urban development, judicial facilities and rural amenities, alongside additional financial support for local bodies.
With ₹4,164.32 crore proposed for capital expenditure, the supplementary budget seeks to strengthen ongoing development initiatives and improve public amenities across rural and urban Uttarakhand.
