Chandigarh Political Landscape Divided Over Union and UT Budget 2026-27
Political parties in Chandigarh on Sunday presented sharply contrasting perspectives regarding the Union Budget and the Union Territory Budget for the fiscal year 2026-27. The Congress and Aam Aadmi Party (AAP) launched strong criticisms against key allocations and policy proposals, while the Bharatiya Janata Party (BJP) hailed the budget as a forward-looking and growth-oriented document that promises balanced development.
Congress Condemns "Cruel Blow" to City Development
The Chandigarh Pradesh Congress Committee (CPCC) expressed strong condemnation of what it described as a drastic reduction in the annual budgetary allocation for the city. The party characterized this cut as a severe setback that directly undermines Chandigarh's pressing development requirements. According to Congress leaders, this reduction reflects the BJP-led central government's apparent indifference towards Chandigarh, particularly at a critical juncture when the city is grappling with stalled projects, deteriorating infrastructure, and an ongoing financial crisis within the Municipal Corporation.
Chandigarh Congress president H S Lucky warned that the fund cut would effectively push the city into a state of "development freeze." He elaborated that this situation would likely prevent the initiation of any new projects and could leave several ongoing works incomplete, deliberately stalling the city's overall progress. Lucky further criticized the Union Budget for neglecting crucial sectors vital to Chandigarh's welfare, including health, education, and agriculture. He pointed out that despite Chandigarh having a significant rural belt, the budget failed to provide any meaningful allocation or a clear roadmap for strengthening healthcare infrastructure, improving educational facilities, or offering substantial support to the farming community.
AAP Voices Concerns Over Burden on Common Citizens
The Chandigarh unit of the Aam Aadmi Party (AAP) issued a robust statement, expressing strong disapproval of both the Finance Bill 2026 and the Chandigarh UT Budget 2026-27. The party argued that these proposals failed to deliver any relief to the middle class and small-time traders, while simultaneously extending benefits to large corporate houses and wealthy individuals.
AAP Chandigarh president Vijaypal Singh asserted that the Finance Bill and UT Budget would significantly increase the financial burden on ordinary citizens, including small traders, salaried employees, and pensioners. He contended that these measures effectively open doors for corporate interests while pushing common people into hardship. The party declared its intention to raise its voice against what it termed an "anti-development and anti-people" budget.
AAP leaders highlighted specific concerns, including provisions in the Finance Bill that introduce a 30% tax and penalties of up to 100% on disclosures related to foreign assets. The party argued that these provisions would place excessive pressure on professionals, small earners, and Non-Resident Indians (NRIs), while largely leaving the ultra-wealthy unaffected.
The party also flagged issues regarding changes in the Minimum Alternate Tax (MAT). Although the MAT rate is reduced from 15% to 14%, AAP expressed concern that restrictions on MAT credit utilization—capped at 25% annually for domestic companies and allowed for a limited period for foreign companies—would create unnecessary complications for businesses.
Furthermore, AAP criticized the increase in Securities Transaction Tax (STT). The tax on options premium rises from 0.10% to 0.15%, on exercise from 0.125% to 0.15%, and on futures from 0.02% to 0.05%. According to AAP, this adjustment would push up costs for small investors and traders, while the impact on large algorithmic and foreign investors would remain limited, creating an uneven playing field.
BJP Hails Budget as Foundation for Balanced Growth
The Chandigarh unit of the Bharatiya Janata Party (BJP) organized a discussion session on the 80th Union Budget at its state office, "Kamalam." Addressing the gathering, BJP Chandigarh president Jitender Pal Malhotra praised the budget, stating that it demonstrates the government's unwavering commitment to balanced development, inclusive progress, and long-term national growth.
Malhotra highlighted the Union Budget's strong focus on infrastructure-led development, which he described as the foundation of India's future economic strength. He emphasized that the proposed data hubs and digital infrastructure hubs would become the backbone of the future economy, accelerating growth in key sectors such as information technology, artificial intelligence, cloud computing, cybersecurity, and digital services.
He specifically noted that cities like Chandigarh, with their educated workforce and IT-friendly ecosystem, would benefit directly through new investment and employment opportunities in IT, start-ups, and services. Malhotra also pointed out that indirect benefits would be visible across the Tricity region in areas such as real estate, logistics, professional services, and skill development, contributing to overall regional prosperity.
