₹58,514-crore HP budget focuses on tourism, agriculture, green energy
Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Monday presented a ₹58,514-crore budget for 2025-26, focusing on rural infrastructure development and green energy in the hill state. Despite financial challenges faced by the state, no new taxes have been proposed for the next financial year.
₹42,343 crore and the total expenditure is projected at ₹48,733 crore (HT Photo)” title=”CM Sukhu said that in 2025-26, the revenue receipts are estimated to be ₹42,343 crore and the total expenditure is projected at ₹48,733 crore (HT Photo)” />Reading out his third annual budget, Sukhu, who also holds the finance portfolio, said 2025-26 was full of financial challenges for the state as its revenue deficit grant (RDG) has been reduced and GST compensation stopped. The revenue deficit of the state has been estimated at ₹6,390 crore.
The CM said that in 2025-26, the revenue receipts are estimated to be ₹42,343 crore and the total expenditure is projected at ₹48,733 crore.
“The RDG has come down to ₹3,257 crore in 2025-26 from ₹6,258 crore last year, which will compound our problems,” he said, adding that the state is awaiting the release of ₹9,000 crore post disaster need assessment (PDNA) relief for damages suffered in the 2023 monsoon.
The fiscal deficit budget estimate is projected at ₹10,338 crore, which is 4.04% of the state’s Gross Domestic Product (GDP).
He said the debt liability of the state has risen to ₹1,04,729 crore, of which ₹29,046 lakh has been taken by his government. Sukhu lashed out and his predecessor Jai Ram Thakur for ‘financial mismanagement’ and said 70% of the loan taken in the past two years had been spent on repayment of loan taken by the previous Bharatiya Janata Party (BJP) government and its interest component. The CM said that of these, only ₹8,093 crore were spent on development activities.
Sukhu said the government was working to make the state self-reliant. He added that the budget has laid special emphasis on promoting tourism across the state.
“The focus is on promoting religious and eco-tourism and exploring lesser-known destinations. Tea estates will be developed as eco-tourism destinations,” said the CM.
He added that operators were selected for seven eco-tourism sites in 2024, and 78 new sites will be allocated in the next phase. “This will help generate revenue of ₹200 crore over the next five years,” the CM added.
A ‘Mukhyamantri Paryatan Start-up Yojana’ to encourage private sector investments in 200 new hotels, ranging from three-star to seven-star categories has been proposed in the budget.
Sukhu said home stays have played a crucial role in attracting tourists to Himachal, adding that religious tourism will be enhanced with development of international-level complexes at Chintpurni, Jawalamukhi and Naina Devi temples.
He announced a hike of ₹6 in the minimum support price of milk, taking cow milk cost from ₹45 to ₹51 per litre and buffalo milk from ₹55 to ₹61 a litre.
Sukhu said that a target has been set to bring one lakh more farmers under natural farming in 2025-26. So far, 1.58 lakh farmers have taken to natural farming in the state. Farmers growing ‘kachi haldi’ (raw turmeric) will get a minimum support price of ₹90 a kg, he said, adding the state government plans to set up a spice park in Hamirpur.
Daily wages of workers engaged in the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) will be increased from ₹300 to ₹320 a day, the CM said.
Special task force to combat drug menace
To combat drug abuse in the state, he announced the constitution of a special task force (STF). He said his government’s focus would be on promoting religious tourism and exploring lesser-known destinations, including developing tea estates as eco-tourism sites.
Sukhu said the government will establish a Drug Dependence Prevention, De-addiction and Rehabilitation Board with the CM as chairperson.
“We will form an action plan for drug abuse prevention and rehabilitation in consultation with Post Graduate Institute of Medical Education and Reseach, Chandigarh, and All India Institute of Medical Science (AIIMS), New Delhi,” said Sukhu, adding that a nodal centre for this will be established at the Tanda medical college.
He said 500 electric buses will be purchased in 2025-26 and the Shimla ropeway project will be started in the next fiscal.
DA to be released from May
Sukhu said dearness allowance at 3% for state government employees will be released from May 15, 2025.
He announced to give arrears to pensioners in the age bracket of 70 to 75 years in first phase in May. He said that the BJP government had left arrear liabilities of about ₹10,000 crore of government employees.
With eye on the panchayat elections, the CM announced an increase in honorarium for village representatives. He said a zila parishad chairperson will now get a monthly honorarium of ₹25,000, vice-chairperson ₹19,000 and member ₹8,300. A panchayat samiti chairperson will get ₹12,000, vice-chairperson ₹9,000 and member ₹7,500. Head of a panchayat will get ₹7,500 and deputy head ₹5,100 every month, the CM said.
Technology
To promote investment and industrial development in the state, work on software technology parks (STPI) being established in Mehli, Shimla and Chaitdu in Kangra, will be completed. Sukhu said this will create employment opportunities for approximately 500 to 650 youngsters.
The CM said the state government has decided to promote drone technology with an aim of achieving the ‘Green Himachal’ vision by 2027. He said the government plans to plans to introduce drone taxi services in the next fiscal for the convenience of the people.
One-time settlement scheme
The state government will introduce an “Agriculture Loan Interest Subvention Scheme” in the interest of farmers, who are the key pillar of rural economy. He said that under this scheme, the farmers whose land is on the verge of being auctioned will be eligible for a one-time settlement policy through banks to repay an agricultural loan up to ₹3 lakh. Under the policy, 50% of the interest on the principal amount will be borne by the government, Sukhu said, adding that the government will bear and estimated cost of ₹50 crore.
