Over ₹4,164 Crore Allocated for Capital Development; Local Bodies to Receive Additional Resources
The Uttarakhand government has proposed additional resources for development projects, infrastructure and public welfare schemes in its supplementary budget for the financial year 2026-27.
The ₹7,844.18 crore supplementary budget, prepared for the Assembly session held at Bhararisain in Gairsain, places special emphasis on roads, drinking water, energy, urban development and strengthening the financial position of local bodies.
Of the total supplementary budget, ₹4,164.32 crore has been proposed under the capital expenditure head, while ₹3,679.86 crore has been earmarked for revenue expenditure. Thus, more than half of the supplementary allocation is directed towards capital expenditure.
With the supplementary budget added to the original budget of ₹1,11,703.21 crore, the state's total budget outlay will increase to ₹1,19,547.39 crore.
One of the significant provisions in the supplementary budget concerns rural and urban local bodies. Accepting the recommendations of the Sixth State Finance Commission, the government has proposed increasing the share of the state's tax revenue allocated to local bodies from 10.5 per cent to 12.5 per cent.
An allocation of ₹721 crore has been proposed for this purpose. The additional funding is expected to provide gram panchayats and urban local bodies with greater financial resources to undertake development projects and address local needs.
Under a special assistance scheme for infrastructure expansion, a capital expenditure provision of ₹500 crore has been made. In the energy sector, approximately ₹270 crore has been earmarked under various heads for transmission and distribution systems, including the Khurpia Farm project.
Around ₹100 crore has been proposed for schemes funded by the Asian Development Bank under the Urban Development Department. The government has also proposed approximately ₹55 crore for the construction of residential and non-residential buildings for the Police Department.
For judicial infrastructure facilities, an allocation of around ₹22 crore has been proposed, while ₹5 crore has been earmarked for the construction of panchayat buildings.
Under the Pradhan Mantri Gram Sadak Yojana (PMGSY), ₹31 crore has been proposed for the Public Works Department, including road maintenance. An additional ₹30 crore has been earmarked for the Rural Development Department.
Through these provisions, the supplementary budget aims to provide additional financial support to ongoing development schemes while expanding essential facilities in both rural and urban areas of Uttarakhand.
The proposed allocations are intended to strengthen infrastructure, improve public amenities and enhance the financial capacity of local governing bodies, enabling them to respond more effectively to the development needs of communities across the state.
