Govt sets the ball rolling for Budget, depts told to align projections with 10-year vision

Initiating preparations for the Haryana Budget 2026-27, the Finance Department has issued directions to all government departments, urging them to prepare “realistic” projections aligned with the state’s 10-year vision. In a communication sent by Additional Chief Secretary (Finance) Anurag Rastogi to all administrative secretaries, heads of departments (HoDs), the Registrar General of the Punjab and Haryana High Court and Vice-Chancellors of state universities, departments have been told to adopt a pragmatic approach while drawing up their budget outlays and to submit details of ongoing schemes for the past three years.

Diktat to departments

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• Send scheme-wise projections based on department’s 10-year CAGR of expenditure, its absorption capacity and its ability to execute ongoing and new schemes

• The Finance Dept will hold pre-Budget parleys to identify each department’s priority areas for the short to medium term to sanction funds

• Additional funds to be considered only during supplementary budgets for ‘unforeseen needs’

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• Send reports of physical, financial performance of ongoing schemes for the last three years

The directive emphasises that every department must prepare scheme-wise projections for 2026-27 based on its 10-year Compound Annual Growth Rate (CAGR) of expenditure, its absorption capacity and its ability to implement both ongoing and new schemes. “All administrative secretaries and heads of the departments (HoDs) will submit their proposed outlays for 2026-27, with scheme-wise projections based on department’s 10-year Compound Annual Growth Rate (CAGR) of expenditure, its absorption capacity and its ability to execute ongoing and new schemes,” the communication states, adding that discussions on the Budget will begin in the first week of December.

Departments have been instructed to prepare proposals under three parts — revenue and capital proposals in Part-I, centrally sponsored schemes on sharing basis in Part-II, and 100% Government of India-funded schemes in Part-III. The Finance Department has stressed that “the proposed allocations under Part-I, Part-II and Part-III for the Budget Estimates 2026-27 and Revised Estimates 2025-26 are kept at the most-realistic levels possible,” noting that realistic budgeting is essential for efficient functioning through the year.

The Finance Department will also hold pre-Budget consultations to identify short to medium-term priority areas for each department so that appropriate financial outlays can be structured in the upcoming Budget. At the same time, it has sounded caution over certain practices pointed out by the Principal Accountant General, particularly regarding overstated Budget Estimates and the tendency of some departments to seek diversion of funds from one scheme to another as early as April. “The Principal Accountant General does not recognise such diversion of funds,” the communication underscores, making it clear that except for unforeseen needs, additional funds will only be considered through the supplementary budget route.

Departments have also been directed to submit physical and financial progress reports of ongoing schemes for the past three years and to furnish details of condemned assets — including vehicles — along with disposal plans and revenue realised during 2025-26. They must also provide year-wise expenditure incurred beyond Standing Finance Committee approvals and share information on ongoing projects within government departments, autonomous bodies and public sector enterprises. Suggestions for augmenting the state’s resources have likewise been sought as part of the pre-Budget exercise.

The previous Haryana Budget for 2025-26, presented by Chief Minister Nayab Singh Saini, who also holds the finance portfolio, had crossed the Rs 2-lakh-crore mark for the first time, touching Rs 2.05 lakh crore against the 2024-25 estimate of Rs 1.89 lakh crore. Officials indicated that the 2026-27 Budget is expected to be significantly higher.