Chandigarh:
The Centre has reduced Chandigarh’s allocation in the Union Budget 2026–27 by ₹437.66 crore, largely due to the privatisation of the Union Territory’s Electricity Department. The Budget was presented in Parliament on Tuesday by Union Finance Minister Nirmala Sitharaman.
As per the Budget estimates for 2026–27, Chandigarh has been allocated ₹6,545.52 crore, comprising ₹5,939.52 crore under the revenue head and ₹606 crore for capital expenditure. In comparison, the allocation for 2025–26 stood at ₹6,983.18 crore, including ₹6,185.18 crore for revenue expenditure and ₹798 crore for capital expenditure.
This year, the UT has received ₹245.66 crore less under the revenue head and ₹192 crore less under the capital head. While revenue expenditure covers salaries and other recurring expenses, capital expenditure is meant for development works and asset creation.
Increased Grants for Municipal Corporation
Despite the overall cut, grants-in-aid to the Municipal Corporation (MC) have been enhanced significantly. The allocation has been raised from ₹625 crore in 2025–26 to ₹850 crore in 2026–27, marking an increase of 36%.
Higher Allocation for PGIMER
The Postgraduate Institute of Medical Education and Research (PGIMER), a premier healthcare institution of the region, has been allocated ₹2,559.65 crore for the coming financial year. This is ₹141.79 crore more than last year’s revised Budget estimates.
Impact of Power Department Privatisation
Following the privatisation of the UT Electricity Department, the Finance Ministry has sharply reduced the allocation for the energy sector—from ₹877.39 crore in the 2025–26 Budget estimates to ₹156.95 crore in 2026–27. This reflects an adjustment of ₹720.44 crore. Taking this structural change into account, the Budget estimates for 2026–27 show a net increase of ₹282.28 crore, or 4.63%.
Sector-wise Allocations
Major allocations in the Chandigarh Budget for 2026–27 include:
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Education: ₹1,295.38 crore (19.79%)
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Housing and Urban Development: ₹1,127.95 crore (17.23%)
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Police: ₹970.53 crore (14.83%)
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Health: ₹955.41 crore (14.60%)
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Transport: ₹459.51 crore (7.02%)
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Energy: ₹189.67 crore (2.90%)
Other sectors together account for ₹1,547.07 crore, which is 23.63% of the total budget.
Demand Higher Than Allocation
For the current financial year, Chandigarh had received ₹6,983.18 crore from the Centre. For 2026–27, the UT Administration had sought an additional ₹1,396.63 crore, taking its total demand to ₹8,379.81 crore.
Key Focus Areas in the Budget
The Budget provides for funding across multiple sectors, including:
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Power and Renewable Energy: Promotion of new and renewable energy sources and the Model Solar City programme.
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Education: Infrastructure development, modernisation of equipment, NCC facilities, government polytechnics and ITIs.
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Health: Upgradation of community health centres, strengthening of polyclinics, rural and urban health centres, and healthcare schemes.
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Women and Child Welfare: Homes for the elderly and destitute, protection centres, crèches, child protection schemes and facilities for girls.
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Roads and Transport: Purchase of new buses, replacement of condemned buses, bus stand upgrades and intercity transport facilities.
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Urban Development: Land acquisition, infrastructure development, roads, stormwater drainage, IT Park, civic works, Sukhna Lake dam and 24×7 water supply.
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Welfare of Differently-Abled and Elderly: Social assistance programmes, disability subsidies and unemployment allowance.
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Housing: Construction and renovation of government residential and non-residential buildings.
