HP CM presents Rs 58,514 cr Budget
Shimla: Navigating a tough fiscal position and the state’s debt exceeding Rs one lakh crore, Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu presented a Rs 58,514 crore tax-free Budget for 2025-26 in the state Assembly.
The budget largely focuses on boosting agrarian development, rural economy, job creation and promotion of tourism. In his 98-page budget speech, Sukhu touched upon issues relating to a substantial cut in the revenue deficit grant and strict conditions imposed by the Centre for state’s borrowing asserting that whatever loans were raised by the state largely (almost 70 percent) were spent on repayments of the loans raised by the previous government and interest payments. “We formed the government on December 11, 2022, inheriting huge financial liabilities left behind by the previous BJP regime, including a debt burden of Rs 76,185 crore.It is because of the imposition of strict conditions on raising of loans, stopping GST compensations and cut in the funding under externally aided projects Himachal has been left struggling to meet aspirations of peoples’ for development and fiscal stability,” Sukhu said.
“Our focus is to strengthen the rural economy. Over the years, we have observed that many people are leaving agriculture. Our sole aim is to promote the rural economy through natural farming. That is why we launched MSPs last year and increased them this year, keeping the farmers’ interests in mind,” he underlined.
The Chief Minister, who also holds the finance portfolio, announced filling up of 25,000 posts in various categories, the release of arrears of pensions for retired government employees above 70 years of age, three percent DA, hike in wages of MGNREGA and other categories of daily wage workers, apart from fixing a minimum monthly salary of Rs 12,750 for outsource employees. He announced a hike in the MSPs of maize, wheat, turmeric and milk.
Daily wage workers’ pay will rise to Rs 425 per day, while MGNREGA workers will get Rs 320 per day, he announced.
The budget, in terms of statistics, has a marginal increase of Rs 70 crore as compared to the current financial year’s budget of Rs 58,444 crore thus showing the state’s tight financial position.
The budget has a projected revenue deficit of Rs 6,390 crore much higher than the current year’s deficit of Rs 4,514 crore.
In 2025-26, the estimated revenue receipts are expected to be Rs 42,343 crore while the total revenue expenditure will be Rs 48,733 crore. The fiscal deficit budget estimate is also projected to be Rs 10,338 crore, which constitutes 4.04 per cent of the gross state domestic product (GSDP).
“As per the budget for 2025-26, out of every Rs 100 spent, Rs 25 will be allocated to salaries, Rs 20 to pensions, Rs 12 to interest payments, Rs 10 to debt repayments, Rs 9 to grants for autonomous institutions, while the remaining Rs 24 will be spent on other activities, including capital works,” he said.
Sukhu said the state was awaiting the release of Rs 9,000 crore Post Disaster Need Assessment (PDNA) relief for damages suffered in the 2023 monsoons, and over Rs 9,000 crore is still lying with the Centre as the share of NPS employees.
He announced that all eligible women between 18 and 59 are provided Rs 1,500 per month. The eligible daughters, who turn 21 years between January 1, 2025, and March 31, 2026, will receive Rs 1,500 per month under a new scheme to be launched next year.
Sukhu had arrived at the Assembly driving his Alto car.
