2 weeks Ago By [email protected] (MENAFN)
The budget projects the hill state's outstanding debt to reach Rs 1.03 lakh crore by the end of fiscal year 2025-26, increasing from Rs 94,794 crore in the revised estimates for 2024-25. According to the Chief Minister, the total revenue deficit is estimated at Rs 6,390 crore, while the fiscal deficit is expected to be Rs 10,338 crore, representing 4.
04 percent of the state's gross domestic product (GDP). Himachal Pradesh's estimated GDP stands at Rs 2.32 lakh crore, with projected economic growth of 6.
7 percent and a per capita income of Rs 2.57 lakh. Revenue receipts for the 2025-26 fiscal year are estimated at Rs 42,343 crore, a decrease from the current fiscal year's revised estimate of Rs 43,704 crore.
Similarly, total revenue expenditure is projected at Rs 48,733 crore, down from Rs 50,190 crore in the ongoing fiscal year. The budget allocates Rs 9,849 crore for education, Rs 3,481 crore for health, and Rs 2,533 crore for social security, women, children, and welfare of other backward classes. Additionally, Rs 905 crore is designated for energy, Rs 673 crore for animal husbandry, and Rs 656 crore for urban development.
State government employees will receive a 3 percent increase in dearness allowance, and pending pension arrears for retirees aged 70-75 will be released beginning May 15 of this financial year. Sukhu noted that the revenue deficit grant from the Centre has decreased substantially, from Rs 10,949 crore in FY 2021-22 to Rs 3,257 crore in FY 2025-26. He also mentioned Rs 9,042 crore in pending post-disaster needs assessment funds from the Centre and the state's claim for its share in Bhakra Beas Management Board projects.
The budget demonstrates a strong focus on the rural economy, with increases in minimum support prices for agricultural products. The MSP for cow milk will rise by Rs 6 to Rs 51 per liter, and buffalo milk will be procured at Rs 61 per liter. Farmers delivering milk to designated collection centers will receive an additional Rs 2 per liter transport subsidy.
The government will provide an MSP of Rs 90 per kilogram for raw turmeric grown through natural farming, Rs 40 per kilogram for maize, and Rs 60 per kilogram for wheat produced using natural farming methods. To address the issue of farmer debt, Sukhu announced the "Agriculture Loan Interest Subvention Scheme" for farmers whose land is at risk of being auctioned. Under this one-time settlement policy, the government will bear 50 percent of the interest on agricultural loans up to Rs 3 lakh.
The administration aims to bring one lakh farmers under natural farming practices in 2025-26 and will establish a potato processing plant with a 500 kg per hour capacity in Una district at a cost of Rs 20 crore. The daily wages of workers under the Mahatma Gandhi National Rural Employment Guarantee Act will increase by Rs 20, from Rs 300 to Rs 320 per day. To address the state's growing drug addiction problem, three additional de-addiction-cum-rehabilitation centers will be established in 2025-26, along with an anti-drugs special task force.
The government will also introduce the "Himachal Pradesh Prevention of Continuing Unlawful Activity and Control of Organised Crime Act, 2025" to combat illegal activities and organised crime. Advancing the state's green initiatives, 3,000 diesel or petrol-based taxis will be converted to electric vehicles in phases, with the government providing up to a 40 percent subsidy for the conversion. The state plans to procure 500 electric buses and implement the "Green Panchayat Scheme," which will establish 500-kilowatt solar projects in 100 panchayats.
For 2025-26, a target of 5,000 hectares has been set for afforestation, with priority given to fruit-bearing trees. The budget includes initiatives to boost tourism, with 78 new eco-tourism sites planned and projected revenue of nearly Rs 200 crore over the next five years from various eco-tourism activities. Under the "Chief Minister Tourism Start-Up Scheme," Himachali youth in non-tribal areas will receive a 4 percent interest subvention on loans for constructing homestay units and hotels, while those in tribal areas will receive a 5 percent interest subvention.
The Chief Minister announced plans to fill 25,000 vacancies across various categories, including 1,000 police constable positions and 1,000 posts in colleges and schools. Additionally, every girl turning 21 between January 1, 2025, and March 31, 2026, will be included in the "Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojana," providing them with Rs 1,500 per month. (KNN Bureau) MENAFN18032025000155011030ID1109329120 Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind.
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