Puducherry Budget Analysis 2026-27
The Chief Minister of Puducherry, Mr. N. Rangasamy, presented the Budget for the financial year 2026-27 on August 24, 2026.
Budget Highlights
- The Gross State Domestic Product (GSDP) of Puducherry for 2026-27 (at current prices) is projected to be Rs 61,460 crore, amounting to a growth of 10% over 2025-26.
- Expenditure (excluding debt repayment) in 2026-27 is estimated to be Rs 13,249 crore, an increase of 1% over the revised estimate for 2025-26. In addition, debt of Rs 1,050 crore will be repaid by the state.
- Receipts (excluding borrowings) for 2026-27 are estimated to be Rs 11,965 crore, an increase of 2% over the revised estimate for 2025-26.
- Revenue deficit in 2026-27 is estimated to be 0.2% of GSDP (Rs 150 crore), lower than a revenue deficit of 0.5% of GSDP (Rs 291 crore) in 2025-26 as per revised estimates.
- Fiscal deficit for 2026-27 is targeted at 2.1% of GSDP (Rs 1,284 crore). In 2025-26, as per the revised estimates, fiscal deficit is expected to be 2.4% of GSDP.
Policy Highlights
- Local administration: The Chief Minister's Local Administration Development Path Scheme will be introduced to improve roads, drainage, parks, public toilets, and other local infrastructure. A five-year plan covering 2,282 works at an estimated cost of Rs 1,131 crore has been prepared.
- Agriculture: Farmers in Karaikal will receive financial assistance of Rs 1,500 per hectare for summer crop cultivation.
- Free bus for students: Free bus transport will be provided to students studying in government and government-aided higher education institutions in the Puducherry region.
- Energy: A 50 MW battery energy storage system will be installed across 10 substations at an estimated cost of Rs 150 crore.
- Police Force: The Union Ministry of Home Affairs has approved the establishment of a second India Reserve Battalion in Puducherry, with central assistance of Rs 80 crore. The Battalion will have 1,007 new posts.
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