Himachal Pradesh CM Sukhu Unveils Deficit Budget of ₹58,514 Crore
Click to start listening
Synopsis
On March 17, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu introduced a deficit budget of ₹58,514 crore focused on the agrarian economy, healthcare, and job creation. The budget anticipates significant fiscal challenges, with a projected deficit of ₹10,338 crore for 2025-26.
Key Takeaways
- Deficit budget of ₹58,514 crore presented
- Fiscal deficit projected at ₹10,338 crore
- Increase in MGNREGA wages announced
- 25,000 new jobs to be created
- Economic challenges anticipated for 2025-26
Shimla, March 17 (NationPress) With an emphasis on bolstering the agrarian economy, healthcare, job creation, and eco-tourism, Chief Minister Sukhvinder Singh Sukhu of Himachal Pradesh presented a budget of ₹58,514 crore for the upcoming fiscal year during the Legislative Assembly session.
Driving his personal Alto car, CM Sukhu, who also manages the Finance portfolio, arrived at the Assembly.
While announcing various schemes in the budget, he projected a total fiscal deficit of ₹10,338 crore for 2025-26, which accounts for 4.04 percent of the state's Gross Domestic Product.
In a detailed 98-page Budget speech delivered in Hindi over nearly three hours, the CM estimated total revenue receipts to be ₹42,343 crore, while total revenue expenditure is forecasted at ₹48,733 crore.
The projected revenue deficit stands at ₹6,390 crore.
The Chief Minister cautioned that the year 2025-26 is poised to be one of the most challenging economically for the state, yet his administration will persist in securing the state’s rightful dues.
“The strict conditions imposed on loan acquisitions and funding for externally-aided projects have led to economic neglect of Himachal,” he remarked.
He noted that the Revenue Deficit Grant (RDG) has dropped to ₹3,257 crore for 2025-26, down from ₹6,258 crore last year, exacerbating the state’s financial challenges.
Himachal is still awaiting the release of ₹9,000 crore in Post Disaster Need Assessment (PDNA) relief for damages incurred during the 2023 monsoons, along with over ₹9,000 crore pending with the Centre as the share for NPS (National Pension System) employees.
He announced an increase in daily wages for MGNREGA workers from ₹300 to ₹320, and from ₹400 to ₹425 for daily wage workers, alongside a rise in the honorarium for representatives of Panchayati Raj and urban local bodies.
Amid rising unemployment concerns, the Chief Minister pledged to create 25,000 new jobs, including 1,000 Rogi Mitras, across various departments.
The price of cow milk will rise to ₹51 per litre from ₹45, while buffalo milk will increase to ₹61 per litre from ₹55.
Acknowledging the state's financial strains, CM Sukhu stated that approximately 70 percent of the government’s loans have been utilized to settle previous debts and interest.
He explained that for every rupee, only 24 paise would be allocated for development, with 25 paise for salaries, ₹20 for pensions, ₹12 for interest payments, ₹10 for debt repayments, and ₹9 for grants to autonomous bodies.
“The aim of the Budget is to revive the state’s derailed economy. We took office on December 11, 2022, inheriting substantial financial liabilities from the previous BJP government, including a debt burden of ₹76,185 crore,” he concluded.
