The Puducherry Legislative Assembly has unanimously passed the ₹14,300-crore budget for FY 2026-27. CM N. Rangasamy announced a commitment to build a new Assembly building and continue the pursuit of full statehood.

  • Budget of ₹14,300 crore for FY 2026-27 approved by the Assembly.
  • CM N. Rangasamy pledged the construction of a new Legislative Assembly building this year.
  • Unanimous resolution passed opposing Karnataka's Mekedatu dam project.
  • Continued government effort to secure full Statehood for Puducherry.

In a decisive session on Monday, the Puducherry Legislative Assembly passed the ₹14,300-crore budget for the financial year 2026-27. Following the detailed responses from Ministers regarding the demand for grants, Chief Minister N. Rangasamy moved the Appropriation Bill, 2026. The Bill was passed unanimously, legally empowering the government to withdraw funds from the treasury for public expenditure.

Addressing the House before the passage of the Bill, the Chief Minister emphasized that the AINRC-BJP alliance remains deeply committed to the trust reposed in them by the electorate. He asserted that the administration is dedicated to fulfilling every assurance laid out in the budget documents to ensure the holistic development of the Union Territory.

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Infrastructure and Statehood Aspirations

A major highlight of the session was the Chief Minister's announcement regarding the construction of a new Assembly building. While the exact location is yet to be finalized, CM Rangasamy confirmed that construction will definitely commence within the current year. Furthermore, he addressed the long-standing demand for Statehood, stating that the government will continue to strive for this transition to grant Puducherry greater autonomy.

The Mekedatu Dam Conflict

The Assembly also took a strong stance on environmental and agricultural security by passing a unanimous resolution opposing Karnataka's proposed Mekedatu dam project across the Cauvery river. The resolution urges the Central government to withhold approval for the project. The Chief Minister highlighted that the dam would be detrimental to the farmers of the Karaikal region, which shares a geographical and hydrological link with the delta districts of Tamil Nadu.

Why This Matters

BozokMedia analysis shows that this budget is not merely a financial roadmap but a political statement. By linking budget approvals with the fight for statehood and water rights (Mekedatu), the Rangasamy administration is positioning itself as a protector of regional interests. The push for a new Assembly building also signals a desire to institutionalize the UT's legislative power more prominently.

"The alignment of the budget with regional water security issues shows that Puducherry is increasingly assertive in its inter-state relations."

Before the House adjourned sine die, Pro-tem Speaker A. Anbalagan expressed gratitude to members across party lines—including the DMK, Congress, and NMK—who supported his role as Speaker. The session concluded with a sense of bipartisan agreement on the immediate financial needs of the territory.

Did You Know?: Puducherry is one of the few Union Territories in India that possesses its own elected legislature and a Council of Ministers, bridging the gap between a UT and a full State.

Frequently Asked Questions

1. What is the total outlay of the Puducherry Budget 2026-27?
The total budget passed by the Assembly is ₹14,300 crore.

2. Why is Puducherry opposing the Mekedatu dam?
The government believes the dam will adversely affect water flow to the Karaikal region, threatening the livelihoods of local farmers.