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Haryana urges Centre to raise FY27 allocations for rural and urban development

#Law & Policy#India#Haryana
Last Updated : 14th Jan, 2026
Synopsis

Haryana Chief Minister Nayab Singh Saini has urged the Centre to increase Union Budget allocations for FY27 to support rural and urban infrastructure, agriculture, healthcare and industrial development. At a pre-budget meeting, he sought higher funding under the Rural Infrastructure Development Fund and removal of project size limits under the Urban Infrastructure Development Fund. Saini highlighted the need for central support to expand medical colleges, modernise agriculture, address waterlogging issues, and strengthen agri-logistics. He also pitched for higher capital assistance to develop Haryana's NCR region as a logistics hub and support MSMEs, startups and new industrial townships, stressing that enhanced central investment is key to sustaining growth and meeting rising development pressures.

Haryana Chief Minister Nayab Singh Saini on Saturday urged the Centre to increase allocations in the Union Budget for FY27 to support the development of rural and urban infrastructure, agriculture and allied sectors. The chief minister placed the demands during a pre-budget meeting chaired by Union Finance Minister Nirmala Sitharaman, which was attended by finance ministers from states and Union Territories.


According to an official statement, Saini, who also holds the finance portfolio, highlighted Haryana's growing infrastructure requirements and sought higher central support to sustain development momentum. He said the general allocation under the Rural Infrastructure Development Fund (RIDF) should be increased to INR 2,000 crore in FY27 to meet rising rural infrastructure needs.

The chief minister also flagged constraints under the Urban Infrastructure Development Fund (UIDF). He noted that the existing cap of INR 100 crore on the maximum project size is limiting the execution of large urban projects and proposed raising this limit to INR 500 crore.

Saini thanked the Centre for continuing the Special Assistance to States for Capital Investment scheme and sought higher untied allocations for Haryana, citing the state's proximity to the national capital and the resulting development pressures. He also requested relaxation in utilisation conditions to ensure effective deployment of funds.

During the meeting, Saini said Haryana is making sustained efforts to accelerate development but central assistance remains critical to achieving desired outcomes. In the healthcare sector, he said the state plans to establish a medical college in every district and requires substantial support under centrally sponsored schemes to expand medical education infrastructure.

Highlighting Haryana's agricultural profile, Saini said the state ranks second nationally in foodgrain production and is widely known as India's breadbasket. However, around six lakh acres of land are affected by salinity and waterlogging, for which he sought financial assistance from the Centre to prevent further degradation.

He also emphasised the need to modernise agriculture through digital solutions, micro-irrigation, agri-logistics and value addition. According to him, these measures can help connect farmers directly to markets, while agri-processing clusters and MSMEs can drive rural economic growth.

On urban and industrial development, the chief minister said Haryana's NCR region is being developed as a logistics hub to ensure faster and time-bound movement of goods across major markets. He stressed that enhanced central capital investment is essential to strengthen logistics and connectivity infrastructure.

Saini further underlined the importance of MSMEs and startups for economic growth. Haryana currently ranks fourth in the country in terms of startups and is setting up a INR 2,000 crore Fund of Funds to promote entrepreneurship. The state is also developing 10 new Industrial Model Townships to support MSMEs and attract capital investment, for which additional financial assistance has been sought.

The chief minister also pointed to the state's social sector commitments, noting that over 44 lakh people receive social security pensions. He requested higher central support under this head as well.

Concluding his remarks, Saini said investment in human capital remains crucial. He highlighted education, healthcare and skill development particularly in emerging areas such as artificial intelligence, semiconductors, green technology and biotechnology as key pillars for achieving long-term economic growth and contributing to India's vision of becoming a developed nation by 2047.

Source: PTI

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