Rajasthan’s Expectations from the Union Budget 2026–27

The **Union Budget** is not merely a statement of the central government’s income and expenditure; it also serves as a **policy document guiding the development trajectory of India’s states**. For the fiscal year 2026–27, Rajasthan has high expectations, given its **vast geography, social diversity, and economy reliant on agriculture, tourism, and small-scale industries**. Facing challenges such as arid conditions, border issues, and employment needs, the state seeks adequate recognition of its **specific developmental requirements** in the Union Budget.

**Water and Irrigation**:
The foremost expectation is support for **Rajasthan’s water scarcity mitigation efforts**, especially the **Eastern Rajasthan Canal Project**, recently revised and renamed the **Ramsetu Project** under the Bhajan Lal government. This ambitious project aims to transform eastern Rajasthan, much like the **Indira Gandhi Canal Project did for western Rajasthan**. The state government has also pledged to bring **Yamuna water to the Shekhawati region**. Central financial assistance is crucial for both projects, and Rajasthan hopes that **Union Finance Minister Nirmala Sitharaman, under Prime Minister Narendra Modi’s direction, allocates substantial funds for drinking water and irrigation projects**.

**Energy and Industrial Infrastructure**:
Central support is also sought for the **Pachpadra Oil Refinery and Petro Complex in western Rajasthan** to enable its **Prime Ministerial inauguration at the earliest**. Funding for **rail projects, airport construction, and road and highway expansion** is also expected to accelerate the state’s infrastructure development.

**Agriculture and Farmer Welfare**:
Given that a large part of Rajasthan depends on **rain-fed agriculture**, the state anticipates that the budget will **enhance the PM-Kisan Samman Nidhi, provide more central assistance for irrigation projects, and announce special packages for drought-affected areas**. Additional measures include **making crop insurance more effective, ensuring Minimum Support Price (MSP) implementation, and promoting coarse grains like bajra and jowar**. These steps would stabilize farmers’ incomes and strengthen the rural economy.

**Water Conservation**:
Water is the lifeline of Rajasthan. The state expects **major projects like the Eastern Rajasthan Canal Project to receive national project status**, along with increased allocations for **rainwater harvesting, groundwater recharge, and drinking water schemes**, which would lay a foundation for **long-term sustainable development**.

**Infrastructure and Connectivity**:
Rajasthan anticipates the budget will boost **road, rail, and air connectivity**, especially in **border and tribal regions**, with provisions for **new railway lines and projects linking tourism destinations**. This would not only improve mobility but also facilitate **trade, investment, and tourism growth**.

**Tourism Development**:
Tourism contributes significantly to Rajasthan’s economy, with **historic forts, palaces, religious sites, desert tourism, and tribal culture** forming the state’s identity. The state expects the Union Budget to **promote tourism as an industry**, provide **incentives for heritage conservation, destination weddings, film shoots, and rural tourism**, generating local employment and foreign exchange.

**MSME and Industrial Growth**:
Rajasthan’s economy includes **stone, handicrafts, textiles, gems & jewelry, and agro-based industries**. The budget is expected to **simplify GST procedures, provide affordable credit, promote exports, and support cluster-based industrial development**, enhancing competitiveness and creating **local employment opportunities**.

**Employment and Skill Development**:
With a growing youth population, the state hopes for budget allocations for **skill training, IT, AI, green energy, and startup ecosystems**. Strengthening **technical education institutions, industrial training centers, and digital skills programs** will enhance Rajasthan’s human resource capabilities.

**Social Development**:
The state seeks greater central support for **health, education, women empowerment, and tribal welfare schemes**. Special packages are expected for **housing, nutrition, education, and healthcare in tribal-dominated districts**, promoting **inclusive development and social balance**.

**Renewable Energy**:
Rajasthan is a **leader in solar and wind energy**. The budget is expected to provide additional incentives for **green energy, battery storage, and green hydrogen projects**, helping the state achieve **energy self-reliance while creating employment and investment opportunities**.

In conclusion, Rajasthan hopes that the **2026–27 Union Budget will serve as a catalyst for agricultural security, water management, tourism growth, industrial expansion, and social empowerment**. By recognizing the state’s **geographical and socio-economic uniqueness**, the budget can pave the way for **balanced and long-term development**, enabling Rajasthan to play an even **stronger role in India’s national progress**.