Sukhu Government’s Tax-Free Budget for 2025-26: A Vision for Rural Growth, Job Creation, and Employee Welfare
Sukhu government's third budget
Shimla, March 17: In a significant move for the people of Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu presented a tax-free budget for the financial year 2025-26, amounting to Rs 58,514 crore. The budget, which is Rs 70 crore more than the previous year’s allocation, was presented in the Himachal Pradesh Assembly on Monday. This is Chief Minister Sukhu’s third budget as Finance Minister, and it has been hailed as a comprehensive blueprint for economic stability, job creation, and inclusive growth, with a special emphasis on strengthening the rural economy and providing relief to the state’s workforce.
Key Highlights of the Budget
The most notable feature of the 2025-26 budget is the absence of any new taxes, a welcome relief for the people of Himachal Pradesh. This move aligns with Sukhu’s promise to create a conducive environment for growth and to ease the financial burden on the general populace.
The Chief Minister outlined that the total revenue receipts of the state are estimated at Rs 42,343 crore, with revenue expenditure projected at Rs 48,733 crore. This leaves the state with a revenue deficit of Rs 6,390 crore and a fiscal deficit of Rs 10,338 crore, which stands at 4.04% of the state’s Gross State Domestic Product (GSDP).
While the budget deficit may raise concerns, the state government has proposed a series of measures aimed at addressing the economic challenges and ensuring that the benefits of the budget are felt across various sections of society, especially rural communities, farmers, employees, and the youth.
Job Creation: 25,000 New Posts for the Youth
One of the most exciting announcements in this year’s budget is the creation of 25,000 new jobs for the youth of Himachal Pradesh. With a focus on employment generation, the Chief Minister confirmed the recruitment of personnel across various sectors, including education, health, police, and panchayati raj institutions. The move is expected to boost the state’s employment rate significantly, providing much-needed opportunities for young job seekers.
- Education Sector: 1,000 posts in schools and colleges will be filled, ensuring that the state’s educational institutions are adequately staffed.
- Health Department: More than 450 posts across various categories will be filled to strengthen healthcare services.
- Police Force: 1,000 constables will be recruited, improving the efficiency and reach of the police force.
- Panchayat and Local Governance: 853 posts of Panchayat Secretaries will be filled, enhancing the efficiency of local governance.
- Technical and Support Staff: 219 posts of technical assistants and 113 posts for Home Guard volunteer drivers will be recruited, further bolstering state infrastructure and safety.
Support for Patients: ‘Rogi Mitra Yojana’
In a move to enhance healthcare access and support for patients, the Chief Minister announced the establishment of a new scheme, Rogi Mitra Yojana. Under this initiative, 1,000 Rogi Mitras (patient assistants) will be deployed across the state to help patients navigate hospitals and healthcare facilities. These Rogi Mitras will receive a monthly honorarium of Rs 15,000, and the government is set to spend Rs 18 crore on this initiative. This scheme aims to improve patient experiences, especially for those who may have difficulty accessing healthcare services independently.
Welfare Measures for Employees
The Sukhu government has also introduced several measures aimed at benefiting government employees, pensioners, and daily wage workers.
- Dearness Allowance (DA): Government employees will receive a 3% increase in their Dearness Allowance, which will be implemented from May 15, 2025.
- Pensioners: The outstanding arrears for pensioners between the ages of 70 and 75 will be cleared in this financial year, providing much-needed relief to senior citizens.
- Increased Wages for Workers: The wages for daily wage laborers have been increased by Rs 25, bringing their daily pay to Rs 425. The wages of MNREGA laborers have also been raised by Rs 20, now totaling Rs 320 per day.
- Honorariums for Anganwadi Workers and Asha Workers: The honorarium for Anganwadi workers has been raised to Rs 10,500, while mini Anganwadi workers will receive Rs 7,300, and Anganwadi assistants will earn Rs 5,800. Asha workers will also receive an increased honorarium of Rs 5,800, with mid-day meal workers set to receive Rs 5,000 per month.
Emphasis on Rural Economy and Empowerment of Women
The 2025-26 budget reflects a deep commitment to bolstering the rural economy and empowering women and marginalized communities. The rural economy is a critical pillar for Himachal Pradesh, with agriculture, animal husbandry, and rural development forming the backbone of its economy.
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Financial Assistance for Women: The budget proposes a financial scheme for eligible women between the ages of 18 and 59 years, under the Indira Gandhi Pyari Behna Sukh Samman Nidhi. These women will receive Rs 1,500 per month, aiming to empower them economically. Additionally, daughters who turn 21 between January 1, 2025, and March 31, 2026, will also receive Rs 1,500 per month.
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Support for Working Women: Starting June 1, 2025, women who are raising families by working in the homes of others will also be included in this scheme. Their eligible daughters will receive Rs 1,500 per month, further encouraging the financial independence of women in the state.
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Women’s Welfare in Education: In another step towards ensuring that women have access to quality education, the Sukhu government has announced financial aid to support daughters of widowed women who wish to pursue higher education. The state government will bear their tuition fees and provide Rs 3,000 per month if they are living in hostels.
Infrastructure, Rural Development, and Digital Transformation
In the area of infrastructure development, the Sukhu government has made a substantial allocation of funds to enhance road connectivity, promote digital infrastructure, and improve rural amenities.
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Rural Road Infrastructure: A budget of Rs 100 crore has been approved under the Chief Minister Road Scheme to improve road connectivity across the state. This investment is aimed at connecting remote and rural areas, facilitating trade, and ensuring better access to public services.
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Digitization of Revenue Department: To enhance transparency and ease of access, the revenue department will undergo digitization. This initiative will allow citizens to access land and revenue records online, reducing bureaucratic delays and improving governance.
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Promotion of E-Vehicles: In a bid to address environmental concerns and reduce pollution, the government is set to replace 3,000 diesel-petrol vehicles with e-vehicles. The initiative will help reduce the state’s carbon footprint and promote the use of clean energy.
A Budget for Growth, Inclusion, and Sustainability
The Himachal Pradesh Budget for 2025-26, presented by Chief Minister Sukhu, is a tax-free budget that prioritizes the welfare of employees, youth, women, farmers, and the elderly. By announcing 25,000 new jobs, implementing wage increases, and initiating progressive schemes for women, the government is laying the foundation for inclusive growth. Additionally, significant investments in rural infrastructure, digital transformation, and environmental sustainability are poised to further propel the state’s development in the coming year.
Through a focus on job creation, employee welfare, and rural development, the Sukhu government’s budget signals a commitment to improving the quality of life for all residents of Himachal Pradesh, creating a prosperous future for generations to come.
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