Uttarakhand Budget Analysis 2025-26

The Finance Minister of Uttarakhand, Mr. Premchand Aggrawal, presented the Budget for the state for the financial year 2025-26 on February 20, 2025.

Budget Highlights

The Gross State Domestic Product (GSDP) of Uttarakhand for 2025-26 (at current prices) is projected to be Rs 4,29,308 crore, amounting to growth of 13% over the revised estimate for 2024-25.
Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 75,170 crore, an increase of 9% over the revised estimate for 2024-25. In addition, debt of Rs 26,006 crore will be repaid by the state.
Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 62,565 crore, an increase of 6% as compared to the revised estimate for 2024-25.
Revenue surplus in 2025-26 is estimated to be 0.6% of GSDP (Rs 2,586 crore), as compared to a revenue surplus of 0.8% of GSDP (Rs 2,852 crore) at the revised estimate stage in 2024-25.
Fiscal deficit for 2025-26 is targeted at 2.9% of GSDP (Rs 12,605 crore). In 2024-25, as per the revised estimate, fiscal deficit is expected to be 2.5% of GSDP, higher than the budgeted estimate of 2.4% of GSDP.

Policy Highlights

Entrepreneurship: A venture capital fund of Rs 200 crore will be set up, to fund start-ups.
Power: An automated demand response system to control over consumption of power from the grid will be setup. This will ensure grid stability and prevent power failures.
Infrastructure development: In 2025-26, 220 kms of new road will be constructed and 1,500 kms of existing roads will be renovated and 1,000 kms of existing roads will be reconstructed.

Uttarakhand’s Economy

GSDP: In 2023-24, Uttarakhand’s GSDP (at constant prices) is estimated to grow by 7.6% over the previous year. In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24. In 2023-24, agriculture, manufacturing and services are expected to grow by 1.6%, 9.2%, and 7.6% respectively in real terms.
Sectors: In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 10%, 47%, and 43% of Uttarakhand’s economy, respectively (at current prices).
Per capita GSDP: In 2023-24, Uttarakhand’s per capita GSDP (at current prices) is estimated to be Rs 2,95,751, an increase of 13% over 2022-23. In 2023-24, India’s per capita GDP is estimated to increase by 8.6% over 2022-23 to Rs 2,11,725.

Figure 1: Growth in Uttarakhand’s GSDP at constant prices (2011-12)

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: MoSPI; PRS.

Budget Estimates for 2025-26

Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 75,170 crore. This is an increase of 9% from the revised estimate of 2024-25. This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 62,565 crore and net borrowings of Rs 12,464 crore. Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 6% over the revised estimate stage in 2024-25.
The state estimates a revenue surplus of 0.6% of GSDP (Rs 2,586 crore) in 2025-26, as compared to a revenue surplus of 0.8% of GSDP at the revised estimate stage of 2024-25.
Fiscal deficit for 2025-26 is targeted at 2.9% of GSDP (Rs 12,605 crore), higher than the revised estimates for 2024-25 (2.5% of GSDP). This is due to higher estimated growth rate in net expenditure (9%) as compared to that of net receipts (6%).