5 big announcements possible for Uttarakhand in Union Budget 2026:Centre likely to boost infrastructure, tourism, disaster aid and Kumbh funds ahead of 2027 Assembly polls

Union Finance Minister Nirmala Sitharaman presented Union Budget in Parliament today, and Uttarakhand is among the states expecting special attention. With Assembly elections due in Uttarakhand in 2027, the Centre is believed to have framed the budget keeping electoral considerations in mind. This year, the Modi government is likely to prioritise infrastructure development, tourism, and self-employment opportunities in the hill state. There is also speculation that, considering upcoming elections in Uttar Pradesh and Uttarakhand, the Centre may increase allocations for the Haridwar Kumbh Mela scheduled for 2027. A similar approach was seen ahead of the 2022 Assembly elections, when the Union Budget 2021 had given notable attention to Uttarakhand. The state’s allocation is also expected to be higher than last year. In the Union Budget 2025–26, Uttarakhand was allocated a central share of ₹15,902 crore, which was ₹1,515 crore more than in 2024–25. 5 key expectations from the Union Budget The state hopes for substantial central funding to prevent migration from villages along the China border. Improved basic amenities and livelihood opportunities are expected to be prioritised in these strategically sensitive regions. An increased allocation is expected for completing the final phase of the Rishikesh–Karnprayag rail project and the Char Dham All-Weather Road. The budget may also include provisions for new heliports to improve access to remote areas. Given Uttarakhand’s vulnerability to natural disasters, the state expects special assistance for disaster mitigation, early warning systems, and monitoring of glacial lakes. The Centre may announce new schemes to promote homestays, adventure tourism, and local enterprises, aimed at generating employment opportunities within mountainous regions. Health and Education An increase in funding is expected for digital education initiatives and modern healthcare facilities in remote hill districts under centrally sponsored schemes. Demands raised by Uttarakhand in pre-budget consultations Mountain development and Reverse migration At the pre-budget consultation held in Delhi on January 10, chaired by the Finance Minister, the Uttarakhand government stressed that economic growth is not possible without balanced development of mountain and border areas. The state sought special central assistance to promote reverse migration, strengthen infrastructure, and enhance climate resilience. Ecosystem services and Disaster compensation Describing Uttarakhand as the country’s ‘water tower’, the government highlighted the ecosystem services it provides. It demanded financial incentives for environmental protection and compensation for disaster-related losses. The state also sought full coverage of reconstruction costs under the State Disaster Response Fund (SDRF), citing its special category status. Rail expansion and improved connectivity The state emphasised the timely completion of the Rishikesh–Karnprayag rail line. It also demanded surveys for the Bageshwar–Karnprayag and Ramnagar–Karnprayag routes to develop a Tanakpur–Bageshwar–Karnprayag–Ramnagar railway circuit, easing access to Badrinath and Kedarnath while reducing road congestion. Social welfare, agriculture and water projects The government sought cluster-based fencing to protect crops from wild animals, higher central support for old-age pensions (60–79 age group), increased honorarium for Anganwadi workers, and an extension of the Jal Jeevan Mission with added maintenance funding. Demand for central support for Kumbh Mela The state requested a separate central budget for the 2027 Kumbh Mela to ensure proper development and maintenance of roads, drinking water, electricity, sanitation, toilets, and security infrastructure. 4 major central projects underway in Uttarakhand Rishikesh–Karnprayag rail project Costing around ₹52,000 crore, this project is expected to transform connectivity for the Char Dham Yatra and the Garhwal region. Char Dham All-Weather Road This multi-phase project aims to ensure year-round road connectivity to the Char Dham shrines, directly benefiting tourism and emergency services. Song Dam and Jamrani Dam projects The Song Dam (150 MLD) in Dehradun and the Jamrani multipurpose dam in Nainital are expected to ease water and power shortages in the Terai region. Kedarnath–Badrinath redevelopment Projects worth over ₹145 crore are underway to redevelop Kedarnath and Badrinath, boosting religious tourism and local employment.