Chandigarh, Feb 1: The Union Territory of Chandigarh has been allocated Rs 6,545.52 crore in the Union Budget 2026–27, marking a decrease from the Rs 6,983.18 crore earmarked in the previous financial year. Presented by Finance Minister Nirmala Sitharaman, the budget reflects a tighter fiscal envelope for the city despite the local administration’s earlier request for an increase to nearly Rs 8,380 crore to support urban and social sectors.
Punjab Governor and Chandigarh Administrator Gulab Chand Kataria noted that the budget serves as a forward-looking roadmap toward national development goals. He mentioned that the allocation aligns with the vision of a developed nation by 2047, even as departments manage year-to-year fiscal constraints.
A significant portion of the reduction is attributed to a structural shift following the privatization of the electricity department, which saw its specific allocation move from over Rs 877 crore down to approximately Rs 157 crore. Officials noted that when this adjustment is factored in, the core estimates actually show a net increase of 4.63 per cent for other operational areas.
The budget breakdown reveals that education remains a primary focus, receiving nearly 20 per cent of the total funds at Rs 1,295.38 crore. Other major allocations include Rs 1,127.95 crore for housing and urban development, while the police and health sectors were granted Rs 970.53 crore and Rs 955.41 crore, respectively.
In a move to support local civic governance, the central government has increased the grants-in-aid for the Municipal Corporation of Chandigarh. The grant has been raised from Rs 625 crore to Rs 850 crore, a 36 per cent jump intended to help the civic body stabilize its finances and sustain essential services.
While some political representatives mentioned concerns regarding the reduction in capital expenditure—which fell from Rs 798 crore to Rs 606 crore—the administration noted that the focus remains on the efficient utilization of available resources. The city is expected to prioritize high-impact projects in healthcare and infrastructure to maintain the quality of public services.
