Chandigarh, February 1, 2026:Senior leader of the Aam Aadmi Party, Prem Garg, has strongly criticized the Union Budget 2026–27 for imposing a sharp reduction in financial allocations to Chandigarh, calling it a serious blow to the city’s development and public services.
As per official budget figures, Chandigarh received ₹6,983.18 crore in the 2025–26 Union Budget, including ₹6,185.18 crore under the revenue head and ₹798 crore under the capital head. In comparison, the 2026–27 Budget allocates only ₹5,720.17 crore, with ₹5,275.15 crore for revenue expenditure and ₹445.02 crore for capital expenditure.
“This is not a routine adjustment — it is a clear and worrying rollback of support to Chandigarh,” Prem Garg said.
📉 Major Declines in Allocation
Revenue Allocation Cut:
Reduced from ₹6,185.18 crore to ₹5,275.15 crore
🔻 Drop of ₹910.03 crore
🔻 Decline of approximately 14.7%
Capital (Development) Allocation Cut:
Reduced from ₹798 crore to ₹445.02 crore
🔻 Drop of ₹352.98 crore
🔻 Massive decline of approximately 44.2%
Prem Garg stated that such a steep cut in capital expenditure, which funds infrastructure, hospitals, schools, roads, and urban development, will directly impact the quality of life of residents.
“Chandigarh is a growing city with rising demands in healthcare, education, transport, and civic infrastructure. Instead of strengthening the city’s foundation, the Central Government has chosen to shrink development funding,” he added.
He further said that the reduction in revenue allocation could strain essential public services, including staffing, maintenance of public facilities, and welfare measures.
Prem Garg urged the Government of India to review and restore Chandigarh’s rightful share, stating that “budget justice for Chandigarh is essential for maintaining its status as one of India’s best-planned and best-governed cities.”