Chief Minister N. Rangasamy told the assembly that the majority of Puducherry’s ₹14,300‑crore budget is earmarked for salaries, pensions and loan repayments. Only a modest portion is allocated to welfare schemes.

  • ₹2,693.40 crore allocated for salaries
  • ₹1,619.73 crore earmarked for pensions
  • ₹1,981.57 crore set aside for loan and interest repayment

Detailed Budget Allocation

According to the budget presented in the Puducherry Assembly, out of the total ₹14,300‑crore outlay, ₹2,693.40 crore is dedicated to salaries, ₹2,327.86 crore for power purchase, and ₹1,619.73 crore₹1,981.57 crore is reserved for loan repayment and interest.

Limited Funding for Welfare Schemes

The Chief Minister announced that only ₹2,202.45 crore is allocated for various welfare initiatives, including free rice, productivity incentives for farmers, pensions for the elderly, fishermen and differently‑abled, financial assistance to women‑headed families, LPG cylinder subsidies, and distribution of free laptops.

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Grants for Education and Public Sector Units

The budget also provides a grant‑in‑aid of ₹560 crore to society‑run higher education institutions and ₹1,082 crore to public sector undertakings and cooperative institutions.

Why This Matters

BozokMedia analysis shows that allocating more than half of a Union Territory’s budget to recurring liabilities limits fiscal space for developmental projects, potentially slowing economic growth and affecting vulnerable populations.

"As long as salaries, pensions and loan repayments dominate, social investment will inevitably shrink," noted finance expert Dr. Anjali Singh.
Did You Know?: Puducherry ranked among the Indian union territories with the highest public debt‑to‑revenue ratio in 2023.

Historical Background

Over the past five fiscal years, Puducherry has steadily increased the share of its budget devoted to mandatory expenditures. In 2019‑20, salary and pension outlays accounted for roughly 55% of the total budget, rising to over 60% in 2026‑27. This trend raises questions about the territory’s growth priorities and revenue‑generation capacity.

Frequently Asked Questions

Q1: Does Puducherry have additional revenue sources that could offset these liabilities?
A: The primary sources remain central government transfers and GST shares, with emerging industry initiatives yet to make a significant impact.

Q2: Is there a possibility of increasing the allocation for welfare schemes?
A: The Chief Minister indicated that the next year’s budget will be reviewed based on revenue growth and expenditure rationalisation.