Himachal Budget 2025-26:Tourism Startup Scheme For Youth
Presenting the Himachal Budget 2025-26
Shimla, March 17: Chief Minister Sukhvinder Singh Sukhu presented the Himachal Pradesh Budget for the fiscal year 2025-26 in the state assembly on Monday. The announcement of the budget was followed by a bunch of major measures to strengthen the rural economy, provide sops to farmers, and create employment avenues for the youth of the state. One of the highlights of interventions was the Climate Resilient Tourism scheme to promote self employment in the tourism sector, along with a slew of initiatives on agriculture, irrigation and environmental conservation.
Tourism Startup Scheme: A Gateway to Self-Employment for Youth
The Chief Minister’s announcement of the Tourism Startup Scheme has been lauded as a transformative step for the state’s youth. Under this initiative, Himachali youth will be provided with a 5% interest subsidy on loans to construct home stays and hotels in non-tribal areas of the state. The scheme aims to tap into the immense tourism potential of Himachal Pradesh, which is known for its picturesque landscapes, heritage sites, and vibrant cultural history.
The move is expected to stimulate the local economy by promoting small-scale hospitality businesses, particularly in less-explored rural regions. The scheme is part of a broader strategy to harness the state’s natural beauty and appeal to both domestic and international tourists, while also offering meaningful employment opportunities to young entrepreneurs.
Financial Relief for Farmers: Loan Waiver and Support Prices
Recognizing the challenges faced by the farming community, Chief Minister Sukhu also announced several key measures aimed at providing financial relief to farmers in the state. One of the most significant announcements was the implementation of a One-Time Settlement Policy for loans of up to Rs 3 lakh. Under this policy, the government will cover 50% of the interest on the principal amount of farmers’ loans, offering much-needed relief to those burdened by debt.
In addition to this loan settlement policy, the government is introducing a new agricultural loan scheme that aims to provide farmers with more favorable terms for future borrowing. These measures are expected to provide immediate financial relief to farmers and ensure a more sustainable farming environment in the years ahead.
The Chief Minister also announced an increase in the Minimum Support Price (MSP) for key crops, signaling the government’s commitment to ensuring fair prices for the state’s agricultural produce. The MSP for maize has been raised from Rs 30 to Rs 40 per kilogram, while the MSP for wheat has been increased from Rs 40 to Rs 60 per kilogram. These changes are expected to improve the income of farmers and help them cope with rising production costs.
Milk Producers Receive a Boost
In a move to support the dairy industry, Chief Minister Sukhu announced an increase in the MSP for cow and buffalo milk. The MSP for cow milk will rise from Rs 45 to Rs 51 per liter, while buffalo milk will see an increase from Rs 55 to Rs 61 per liter. Additionally, the government will provide an extra Rs 2 per liter for transporting milk from remote and hilly areas, helping ensure that milk producers in far-flung regions are not disadvantaged by logistical challenges.
Irrigation and Agricultural Infrastructure Development
To address the pressing issue of inadequate irrigation facilities, the state government has committed to spending Rs 10 crore on the development of new irrigation schemes in 100 villages across Himachal Pradesh. These projects are expected to enhance water availability for farming, particularly in areas that have long struggled with water scarcity.
Furthermore, the government is expanding its Chief Minister Khet Sanrakshan Yojana to include mesh fencing for crops, aiming to protect agricultural produce from wild animals. This initiative is expected to reduce crop damage, which has been a significant issue for farmers in the state.
Support for Spice and Potato Farmers
In a bid to bolster the state’s agricultural diversity, the Chief Minister announced plans to build a modern spice park in Hamirpur district. The park will provide farmers with access to better market infrastructure and ensure that they receive fair prices for their spice crops. Similarly, a Rs 20 crore potato processing plant will be set up in Una district, which will offer potato farmers a direct market for their produce, reducing reliance on middlemen and improving their profitability.
To further support spice producers, the government has decided to fix the MSP of raw turmeric at Rs 90 per kilogram, ensuring that farmers involved in spice cultivation have a stable and predictable income source.
Environmental Conservation: Grants for Tree Plantation
Environmental conservation was also a major theme of the budget. The Chief Minister revealed that the government will allocate Rs 100 crore for tree plantation activities this year. This initiative will involve local communities, particularly women and youth groups, who will receive grants of Rs 1 lakh each for planting trees. In addition, if the planted saplings achieve a 100% survival rate, these groups will receive an additional Rs 1 lakh annually for the next five years to help sustain the project.
To further encourage environmental conservation, the government will also provide Rs 2.40 lakh for fencing around planted areas, ensuring that the saplings are protected from animals and other threats.
Support for Local Governance: Increased Honorarium for Workers
In a move to support local governance and public service workers, the government has announced an increase in the honorarium for MNREGA workers and Panchayat representatives. The daily wage for MNREGA workers will rise from Rs 300 to Rs 320, acknowledging the hard work of those involved in rural development projects.
In addition to this, the honorariums for Panchayat representatives have been increased across various levels. For instance, the honorarium of the District Council President and Vice President will rise by Rs 1,000, while the honorarium for members will increase by Rs 500. Similarly, the Panchayat Samiti President and Vice President will see a Rs 600 increase, and members will receive Rs 300 more. For Gram Panchayat representatives, the honorarium for Pradhan and Deputy Pradhan will rise by Rs 300, while members will be paid Rs 300 per meeting.
A Vision for Sustainable Growth and Employment
Chief Minister Sukhvinder Singh Sukhu’s budget for 2025-26 reflects a comprehensive vision for the state’s future, with an emphasis on self-employment, rural development, environmental conservation, and agricultural sustainability. The announcements, particularly the Tourism Startup Scheme, the loan settlement policy for farmers, and the support for local agriculture, signal a bold step toward ensuring economic resilience and prosperity for Himachal Pradesh.
With these initiatives, the state is poised to create new opportunities for its youth, bolster the agricultural sector, and preserve its natural beauty for generations to come. The budget highlights the state government’s commitment to building a future that is both economically vibrant and environmentally sustainable.
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