Haryana Budget 2025-26 focuses on industry and urban development debt and regional inequality

Overall regional bias

CM and Finance Minister Naib Singh Saini proposed the budget for Haryana’s 2025-26 Rs 2025-26 Rs 2025-26 RsTh March 2025. It showed a 13.70% increase, up from the previous year’s revised estimate of 8.38%.

The Budget Speech creates AURO by announcing a new future sector, a hub of innovation and entrepreneurship, and the power to control drug threats. In the budget announcement, areas that were already more developed, such as Yamunanagar, Ambala, Kurukshetra, Sonepat, Karnal and Hisar, were mentioned, but there were few new plans for any new development zones except the mustard oil plant in Bhiwani and the mustard oil plant in Loharu Fort. NUH, Mahendrargarh, Charkhi Dadri and Bhiwani have no new items or IMT/INDUSTRIAL EASTER. Even the old demand for the Southern Haryana High Court bench highlighted in the BJP declaration in 2014 has been forgotten.

Please note that about 100 police officers from the southern region travel to Chandigarh to comply with various cases in the High Courts of Punjab and Haryana, the state must conduct an official tour for three days. The litigant’s expenditure may be diverse. There is no talk of administrative administration near the people in faraway areas of Chandigarh. Therefore, the budget may further emphasize regional inequality in the state.

Positive to industrial and urban population

The sector’s budget is biased towards industry and business, with more than tripling in allocations, followed by 39% in town and state programs, 36% in agricultural allies’ activities, 30% in Panchayats and 28% in rural development, and 28% in social welfare. Health, education and police increased from 7% to 12%. Allocation of public health and public works sectors has changed little, with energy allocation reduced by about 25%.

The concern about budgeting is that its total income is insufficient; debt repayment and interest is 48.51%, 25.02% salary is salary, pension is 12.91%, and social justice expenditure is increasing every year is 13.02%. As a result, almost the total RR (99.46%) is exhausted by these promised revenue items. The rest of the budget is mainly managed by borrowing and negligible capital income. Furthermore, women’s LADO Laxmi Yojana is still looming every month. The state’s revenue deficit (RD) will reach Rs 20,600 crore by the end of 2025 and outstanding debts will reach Rs 3.53 crore. Haryana is one of the top ten most important states, which has almost reached the situation in neighboring Punjab.

Disguised debt

The government is very aware of the increase in debt problems, which is why FM and CM are trying to disguise the financial situation in FRBM discipline. Criticism from the opposition is expected, FM tried to prove well that RD and debt meet the prescribed limits in the 8 initial pages of the budget speech. It confirmed the local bag dance area: “IE”Camel with knee problems crying before sitting”. In this regard, the unprecedented increase in the state’s gross domestic product (GDP) is the guard who keeps debt at around 26% of GDP, while the prescribed limit is 33.1%. It is worth noting that Haryana’s GDP, especially current prices, has recorded unprecedented growth, which helps to bring the country’s debt below the GDP ratio. However, the basis for increasing GDP at current prices seems doubtful. GDP is 85% of GDP at a constant price (price in 2011-12), and currently price is 2014, down to 68% in 2020-21 and 56% in 2024-25. This means that the GDP growth rate at the current price is much higher than the GDP growth rate at a constant price. Therefore, the percentage of GDP at current prices remains low. It is with the help of higher GDP that FM attempts to disguise the actual level of RD, fiscal deficits and outstanding debts in budget speeches, which are restrictions under the FRBM Act.

In states, even at the national level, income deficits and debts cannot be maintained for a long time. The Supreme Court (SC) also accepts the right of political parties to abide by their welfare agenda in accordance with the principles of the Constitution’s Directives. Currently, all political parties use cash support to women and others as bribes to get votes. It should be noted that the cash distribution policy of a portion of the population is subject to the state or the surplus budget of the country. The state/state cannot be kind by loans. It is also unreasonable for a state to provide free gifts to a portion of its population by obtaining loans in the name of everyone else. SC can provide free electricity or cash support to the poor through states with only surplus budgets; otherwise, India may also be moving towards the situation in Sri Lanka.

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