Puducherry Budget | Govt. was able to manage fiscal deficit while implementing welfare schemes: CM Rangasamy

Presenting an annual outlay of ₹13,600 crore for 2025-26, Puducherry Chief Minister N. Rangasamy on Wednesday (March 12, 2025) informed the Assembly that the government was able to maintain fiscal discipline while executing all the welfare schemes in the Union Territory (UT).

Presenting an annual outlay of ₹13,600 crore for 2025-26, Puducherry Chief Minister N. Rangasamy on Wednesday (March 12, 2025) informed the Assembly that the government was able to maintain fiscal discipline while executing all the welfare schemes in the Union Territory (UT).

“Our government has successfully maintained its fiscal deficit and debt-to-GSDP ratio within permissible limits. The government remains steadfast in its efforts to strengthen the UT’s financial position and accelerate economic growth through well-planned measures. The government was able to sustain and accelerate economic growth, maintain law and order, and invest for society’s future,” the Chief Minister said.

Focusing on cooperation with the Central government, the Chief Minister said: “I express my profound gratitude to Prime Minister Narendra Modi for his continuous guidance and whole-hearted support. Due to close cooperation and coordinated efforts between the Central and UT governments, my government has implemented several progressive welfare schemes in the last four years.” 

On the total budget size, the Chief Minister said the UT’s own revenue receipts was estimated to be around ₹7,641.40 crore. The Central assistance, including State Disaster Relief Fund, has been estimated at ₹3,432.18 crore, Central Road Fund as ₹25 crore, and allocation under Centrally Sponsored Schemes has been estimated at ₹400 crore, he further said.

The Central government has conveyed its approval for Net Borrowing Ceiling (NBC), including negotiated loan to the extent of ₹2,101.42 crore to bridge the gap of fiscal deficit. Out of the budget estimate of ₹13,600 crore, ₹11,624.72 crore has been allocated for revenue expenditure and ₹1,975.28 crore for capital expenditure. The percentage of capital expenditure against the total expenditure has been considerably increased to 9.80% in the budget for 2025-26, as compared to only 1.66% in the year 2021-22, which is almost a ten-fold increase, the Chief Minister said.

On the government expenditure part, the Chief Minister said around ₹2, 650 crore has been earmarked for payment of salaries, ₹1,566 crore for pension, ₹1,867 crore for repayment of loan, and ₹2,546 crore for purchase of power. Of the total budget estimate, a sum of ₹2,110 crore would go towards implementing government’s welfare schemes, including free rice, monthly financial assistance to women, and subsidy for LPG cylinder.