Uttarakhand Chief Minister Pushkar Singh Dhami conducted a comprehensive review of the state's revenue receipts for the fiscal year 2025-26. The meeting, held at the Secretariat, involved key officials, including the Finance Minister, to assess the state's financial performance and strategize for enhanced revenue collection.

During the review, Chief Minister Dhami emphasized the importance of maximizing revenue collection and directed officials to focus on efficient tax recovery. He also underscored the need to leverage technology, including Artificial Intelligence (AI), to identify and control tax evasion. The Chief Minister called for the digitization of registrations and the implementation of accurate property valuations to boost revenue.

Furthermore, CM Dhami directed authorities to ensure the immediate collection of green cess from vehicles entering Uttarakhand from other states. He also stressed the importance of utilizing the state's forest resources effectively to generate revenue, given that 71% of the state is forest area.

The Uttarakhand government presented a budget of ₹1,01,175.33 crore for FY26, prioritizing infrastructure development and economic balance. The budget estimates total receipts of ₹1,01,034.75 crore, including ₹62,540.54 crore in revenue receipts and ₹38,494.21 crore in capital receipts. Tax revenue is projected to be ₹39,917.74 crore, while non-tax revenue is expected to be ₹22,622.80 crore. Capital receipts from loans and other liabilities are estimated at ₹38,470.00 crore.

India Ratings and Research (Ind-Ra) anticipates that Uttarakhand's fiscal performance in FY26 will surpass budgeted expectations. The state has budgeted a fiscal deficit of 2.9% of GSDP for FY26, which is within the limits allowed by the central government. Ind-Ra projects that the fiscal deficit may be around 2.5% of GSDP in FY26, due to potentially lower capital expenditure resulting from optimistic grant assumptions from the Union government.

The state's own-tax revenues (SOTR), state's own-non-tax revenues (SONTR) and grants from the union government were lower than FY25BE, respectively. The tax devolution was higher in the same period.

The budget allocates ₹59,954.65 crore to the revenue section and ₹41,220.67 crore to the capital section. The Finance Minister reported that there is no revenue deficit and a budget surplus of ₹2,585.89 crore. The budget aims to address the state’s development needs while maintaining fiscal responsibility and fostering growth across key sectors.

The government is emphasizing the development of digital and basic infrastructure, human resources, environmental conservation, and inclusive development through various schemes. The budget is based on the 'GYAN' model, which focuses on the poor, youth, farmers, and women.

To boost industry and startups, the budget includes ₹50 crore for MSME industries, ₹35 crore for the Mega Industry Policy, ₹30 crore for startup promotion, and ₹500 crore under the Mega Project Scheme to drive economic expansion.

The state's GSDP for 2025-26 is projected to be ₹4,29,308 crore, representing a 13% growth over the revised estimate for 2024-25. Expenditure (excluding debt repayment) in 2025-26 is estimated to be ₹75,170 crore, a 9% increase over the revised estimate for 2024-25. Receipts (excluding borrowings) for 2025-26 are estimated to be ₹62,565 crore, a 6% increase compared to the revised estimate for 2024-25.

The state estimates a revenue surplus of 0.6% of GSDP (₹2,586 crore) in 2025-26, compared to a revenue surplus of 0.8% of GSDP at the revised estimate stage of 2024-25. The fiscal deficit for 2025-26 is targeted at 2.9% of GSDP (₹12,605 crore), higher than the revised estimates for 2024-25 (2.5% of GSDP).