PUDUCHERRY: The Ministry of Home Affairs (MHA) on Monday approved Puducherry's Rs 14,300-crore draft budget for the financial year 2026-27, enabling the government to present it before the Legislative Assembly. This draft budget is Rs 700 crores more than the budget outlay of Rs 13,600 crore in 2025-2026 .
In a communication to the Chief Secretary, the MHA conveyed the approval of the President after examining the proposal submitted by the Puducherry government in consultation with the Ministry of Finance.
The budget will be financed through estimated projected revenue receipts of Rs 11,965.07 crore, comprising Rs 7,890.41 crore from the union territory's own tax and non-tax revenues and Rs 4,074.66 crore in grants-in-aid from the Government of India.
The central grants include Rs 3,512.86 crore under Normal Central Assistance, Rs 531.80 crore for Centrally Sponsored Schemes and flagship programmes, Rs 25 crore under the Central Road Fund and Rs 5 crore for the Union Territory Disaster Response Fund.
The Annual Financial Statement also estimates capital receipts of Rs 2,334.93 crore. This includes Rs 186.24 crores as Special Assistance to States for Capital Investment. To bridge the fiscal deficit, the government has been permitted to raise a loan of Rs 2,148.69 crore, including negotiated loan by the Government of India and market borrowings.