Key Highlights
- Overall outlay of Rs 58,514 crore with priority sectors identified as tourism, renewable energy and rural upliftment.
- Revenue Deficit Grant cut to Rs 3,257 crore and loss of Rs 9,478 crore after central GST compensation stopped.
- State debt stands at Rs 1,04,729 crore; only Rs 8,093 crore of the latest borrowing is earmarked for development.
- Eco‑tourism agenda includes 78 fresh sites and conversion of tea estates into nature‑based attractions, projected to generate Rs 200 crore in five years.
- Agricultural support features higher milk MSP, a natural‑farming drive for 1 lakh farmers, and a new spice‑processing hub at Hamirpur.
Detailed Insights
The third budget presented by Chief Minister Sukhvinder Singh Sukhu outlines a dual narrative of ambition and constraint. While the fiscal envelope swells to Rs 58,514 crore, the state grapples with a steep decline in central transfers: the Revenue Deficit Grant has fallen from Rs 10,949 crore in 2021‑22 to Rs 3,257 crore for 2025‑26, and the cessation of GST compensation has already inflicted a Rs 9,478 crore shortfall. Consequently, Himachal’s total debt has ballooned to Rs 1,04,729 crore, of which the current administration has borrowed Rs 29,046 crore; 70 % of this amount has been diverted to service legacy loans and interest, leaving a modest Rs 8,093 crore for new developmental projects.
Tourism receives a vigorous push, with a distinct focus on religious circuits, under‑explored hill locales and eco‑sensitive destinations. Seven eco‑tourism sites were sanctioned in 2024, and an additional 78 are slated for the next phase. The government also intends to transform tea plantations into eco‑tourism hubs, anticipating Rs 200 crore in ancillary revenue over the next half‑decade.
Environmental stewardship is framed as an economic asset. The forest canopy, described as the “lungs of North India,” delivers ecosystem services valued at roughly Rs 90,000 crore annually. Himachal seeks a dedicated grant from the 16th Finance Commission to monetize this contribution. In the clean‑energy arena, the state will acquire 500 electric buses in FY 25‑26 and launch the Shimla Ropeway project to foster sustainable urban mobility.
Agricultural measures include a rise in milk minimum support price to Rs 51 per litre for cow milk and Rs 61 per litre for buffalo milk, a target of enrolling 1 lakh farmers in natural‑farming practices by 2025‑26 (the current count stands at 1.58 lakh), and an MSP of Rs 90 per kg for organically grown raw turmeric. A Spice Park in Hamirpur will serve as a processing and marketing nucleus for the sector.
Social safety nets are reinforced: daily wages under MGNREGA increase to Rs 320, pension arrears for seniors aged 70‑75 will be cleared in May 2025, and new directorates for schools and colleges aim to streamline educational governance. Law‑order initiatives feature a Special Task Force against drug abuse and the forthcoming Himachal Pradesh Prevention of Continuing Unlawful Activity and Control of Organized Crime Act, 2025.