SHIMLA/DEHRADUN/NEW DELHI:
The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman with a total outlay of ₹53.5 lakh crore, promises growth through infrastructure and fiscal discipline.
But for Himachal Pradesh and Uttarakhand, two Himalayan states battling climate disasters, farm distress, debt and unemployment, the budget offers little direct relief or region-specific support.
The Centre plans to spend ₹12.2 lakh crore on capital expenditure, the highest ever, largely aimed at highways, railways, industrial corridors and urban infrastructure.
The fiscal deficit has been pegged at 4.3% of GDP, indicating tight control over spending.
While these numbers may strengthen the national economy, experts say the budget lacks a Himalayan lens, ignoring the unique cost structures and vulnerabilities of hill states like Himachal and Uttarakhand.
Climate Change and Disasters
Himachal Pradesh and Uttarakhand have witnessed repeated cloudbursts, flash floods, landslides, road washouts and crop damage over the past few years. Entire villages have been cut off, highways destroyed and livelihoods, lands washed away.
Despite this, the budget does not announce any dedicated disaster-resilience or climate-adaptation package for the Himalayan states.
Long-standing demands for a special Himalayan disaster fund, climate-proof infrastructure grants and higher central assistance for rebuilding remain unaddressed.
For both states, where disaster response now consumes a major portion of annual resources, the absence of targeted funding has caused disappointment.
This has left the shattered families fending for themselves as states have little funds to properly rehabilitate them and allot them the land.
All government's lands are forest land which lies withe Central government
Farm Distress in the Hills: Costs Up, Support Missing
Agriculture and allied sectors have been allocated about ₹1.62–1.63 lakh crore nationally, with emphasis on diversification, livestock, fisheries and technology-driven farming with focus in the south.
But in Himachal Pradesh and Uttarakhand, farmers face a different reality.
Input costs — seeds, sprays, fertilisers, labour and transport — are far higher in hill terrain. Most of them are substandard and do more harm than good to the farm ecosystem as there is no quality check labs in the state.
Crop failures are increasing due to erratic snowfall, hailstorms, untimely rains and rising temperatures.
Landholdings are shrinking, making farming economically unviable.
Soil fertility is declining due to erosion, heavy rainfall and loss of organic matter.
Despite these pressures, the budget offers no loan waiver, no special hill-farming package and no legal MSP guarantee. The PM-Kisan support remains unchanged at ₹6,000 per year, which farmers say does not even cover basic input costs.
Apple growers in Himachal and vegetable and grain farmers in Uttarakhand say farming is turning into a high-risk, low-return occupation, pushing families to abandon agriculture altogether.
Debt, Salaries and Pension Pressure
Both Himachal Pradesh and Uttarakhand are struggling with mounting debt and ballooning salary and pension bills, which eat into development spending.
With limited industry and revenue options due to geography and environmental restrictions, these states depend heavily on central assistance. However, the budget offers no special fiscal relief, debt restructuring or higher devolution for hill states facing structural disadvantages.
Economists warn that without targeted fiscal support, hill states will continue to divert funds from development to merely paying salaries and pensions.
Unemployment and Migration: Villages Emptying Out
Unemployment remains one of the biggest challenges in both states.
The budget’s focus on manufacturing, urban infrastructure and industrial growth offers few direct job opportunities in mountain regions.
As a result: Youth continue to migrate to plains and metros for work. Villages in higher reaches mainly in Uttarakhand are witnessing rapid depopulation.
Agriculture and local economies weaken further as the workforce leaves.
While MSMEs and startups have been talked up, experts say without hill-specific incentives, these schemes will largely bypass Himachal and Uttarakhand.
What Economists Say
Economists describe the budget as growth-oriented but region-blind. While fiscal discipline and infrastructure spending are positive at the national level, the lack of targeted measures for fragile mountain economies risks deepening regional imbalance.
Without strong intervention, climate stress, farm distress and migration could worsen in Himachal Pradesh and Uttarakhand.
For Himachal Pradesh and Uttarakhand, the Union Budget 2026–27 offers big national ambitions but little local assurance.
It invests heavily in future growth but fails to address the immediate realities of climate disasters, rising farm costs, debt stress and joblessness in the hills.
Unless Himalayan states receive special policy attention and financial support, experts warn that migration will accelerate, villages will empty further, and hill agriculture will continue to decline — at a heavy social and ecological cost.
