Haryana budget: Focus on women, AI but dip in capex a worry
The budget outlay of ₹2.05 lakh crore ( ₹2,05,017.29 crore) was about 8% higher than the ₹1.89 lakh crore ( ₹1,89,876.61 crore) presented by Saini’s predecessor Manohar Lal Khattar, while presenting the 2024-25 budget estimates last year
Proposing an ambitious budget outlay of about ₹2.05 lakh crore for the 2025-26 financial year, Haryana chief minister Nayab Singh Saini on Monday presented his maiden budget estimates in the state assembly.
The budget outlay of ₹2.05 lakh crore ( ₹2,05,017.29 crore) was about 8% higher than the ₹1.89 lakh crore ( ₹1,89,876.61 crore) presented by Saini’s predecessor Manohar Lal Khattar, while presenting the 2024-25 budget estimates last year.
The state government, however, fell short of the proposed mark and had to make a climb down to revise its budget outlay to ₹1.80 lakh crore ( ₹1,80,313.57 crore) for 2024-25 fiscal.
The chief minister who also hold the finance portfolio, however, told the House during his budget address that the proposed total budget of ₹2,05,017.29 crore for 2025-26 financial year reflected a 13.7% increase over the revised estimates of ₹1,80,313.57 crore for 2024-25 fiscal.
As has happened in the past couple of years, the proposed capital expenditure yet again saw a dip in 2025-26 budget estimates at ₹16,164.11 crore as compared to what Khattar had committed - - ₹16,280.94 crore --in the 2024-25 estimates. The state government could actually only spend ₹12,752.52 crore on asset creation in 2024-25. Capital expenditure is the money spent by the government on creation of long-term assets like infrastructure projects, roads, bridges, educational institutions, health care facilities, and for undertaking development works. The capital expenditure helps boost and sustain economic growth.
Exclusion criteria to be worked out for Lado Lakshmi
The chief minister though announced a provision of ₹5,000 crore for implementing BJPs 2024 assembly poll promise of providing monthly financial assistance of ₹2,100 to every woman in the state under Lado Lakshmi Yojana, he said that the contours of the scheme were being worked out. Officials said that exclusion criteria is being deliberated upon by the government to ensure that only worthy beneficiaries get the financial assistance. “For instance, women in government jobs would be excluded, those getting old age pension or any other social security pension would also get excluded,’’ said an official. Saini said the Lado Lakshmi Yojana aimed to promote the empowerment of women by fostering financial independence, ensuring social security, and enhancing their overall well-being and participation in society. It focuses on empowering the most marginalised sections of society to strengthen their financial autonomy. As per the budget estimates, financial assistance amounting to ₹2,100 per month, or as revised and notified by the state government from time to time, will be given to the eligible beneficiaries as Direct Benefit Transfer (DBT) through the public finance management system (PFMS).
Revenue deficit, debt liability on increase
As per budget estimates for 2025-26, the revenue deficit is estimated to be at ₹20,599.75 crore which constitutes 1.53% of the gross state domestic product (GSDP) and the fiscal deficit is estimated to be at ₹35,994.66 crore which constitutes 2.67% of the GSDP.
Saini however said in his address that it is important to note that, as per the Fiscal Responsibility and Budget Management (FRBM) Act, the fiscal deficit of any state government in any year should not exceed 3% of state’s GDP. Thus, the reduction from 2.88% in 2014-15 to 2.68% in 2024-25 reflected government’s efficient financial management of the treasury.
“In my proposal for 2025-26, the target is to further reduce this deficit and bring it down to 2.67% of state’s GSDP,’’ he said.
As per the budget documents, the state debt liability is likely to go up to ₹3,52,818.70 crore as on March 31, 2026, from ₹3,17,257.48 crore as on March 31, 2025, constituting 26.18% of the GSDP.
Interest payment liability has been estimated at ₹26,231.11 crore during 2025-26, which accounts for 20.52% of total revenue receipts (TRR). The expenditure on salary and pension as a ratio to TRR is likely to be 25% and 12.9% respectively in 2025-26 estimates.
The chief minister however said that it is a universally accepted principle of economics that the government should not take loans for its revenue expenditure. At the same time, there is no harm in borrowing up to a certain limit for capital expenditure; in fact, it should be taken, he said.
Department of Future, AI Mission
Saini proposed the creation of a new department --department of the future-- which he said was aimed at making the state future-capable. “This department will anticipate upcoming challenges, disparities and new opportunities for economic development. It will provide policy recommendations to all other departments and work to enhance their capacity over time,’’ Saini said in his address.
The CM also proposed the establishment of Haryana AI Mission stating that in the past decade the state government has placed significant emphasis on e-governance and many departments possessed vast amounts of data related to citizen services. “I believe thatdata-driven policymaking and the automation of governance can significantly enhance our capacity and the efficiency of public services. The World Bank has given us an initial assurance of ₹474 crore in support for this initiative. Through this artificial intelligence mission, one hub each will be established in Gurugram and Panchkula. These hubs will train over 50,000 youth and professionals from Haryana in cutting-edge technologies, equipping them for new job opportunities and future challenges,’’ he announced.
The CM also announced that one 4-5 km road stretch in each city and one 10-15 km road stretch in each district will be upgraded to a smart road in the 2025-26 fiscal.
Saini said that he is making a special provision of ₹5 crore for each MLA to support development works in their respective constituencies during the tenure of this assembly. This amount will be disbursed in three instalments. Each MLA will need to submit a prioritised list of development works totalling ₹5 crore for their constituency.
