Himachal Assembly Passes Rs 58,514 Crore Budget for 2025-26, Development Works to Gain Momentum

Shimla, March 26 — The Himachal Pradesh Assembly has approved a budget of Rs 58,514 crore for the financial year 2025-26, marking a significant step towards boosting the state’s development. The Himachal Pradesh Appropriation Bill 2025, introduced by Chief Minister Sukhvinder Singh Sukhu, was passed through a voice vote, granting the government permission to draw funds from the state’s Consolidated Fund for the upcoming fiscal year.

The budget, presented by Chief Minister Sukhu on March 17, is designed to foster growth, particularly in rural areas, agriculture, and social security, while also providing relief to the public by not introducing any new taxes. This approach highlights the government’s commitment to balanced growth without burdening the common citizen with additional financial responsibilities.

Key Features of the Budget

A key feature of this year’s budget is the emphasis on development works, with 24% of the total budget earmarked for this sector. This allocation reflects the government’s determination to improve infrastructure and ensure that critical development projects across the state are completed promptly. The focus on rural economy and agriculture is also evident, with various new schemes aimed at revitalizing these vital sectors.

Along with development works, the budget also outlines substantial spending on public sector commitments. A significant 45% of the total budget will go towards salaries, allowances, and pensions for government employees and pensioners, ensuring that the state’s workforce remains supported and motivated.

The state has also made provisions for financial obligations, with 12% allocated for interest payments on loans, and 10% reserved for loan repayments. Additionally, 9% of the budget will be directed toward grants for autonomous institutions.

Employment and Welfare Measures

A major highlight of the budget is the announcement of 25,000 new jobs to be created in the coming financial year. This is expected to provide much-needed employment opportunities for the youth of the state, contributing to economic growth and reducing unemployment rates.

In a move to support the state’s workforce, the government has also announced a 3% increase in dearness allowance (DA) for employees. Furthermore, the minimum salary for outsourced employees has been set at Rs 12,750, while pensioners aged 70 to 75 will receive their outstanding arrears. The minimum daily wage has been raised to Rs 425, and MNREGA wages have been increased by Rs 20, further strengthening the welfare of laborers and rural workers.

Fiscal Challenges: Revenue and Capital Deficit

Despite the positive initiatives, the state government has also highlighted the fiscal challenges ahead. The budget estimates a revenue deficit of Rs 6,390 crore and a capital deficit of Rs 10,338 crore for the upcoming financial year. The total revenue receipts for the state are estimated at Rs 42,343 crore, while the revenue expenditure is projected to be Rs 48,733 crore. This indicates a need for the government to balance its finances carefully while continuing to pursue ambitious developmental goals.

Looking Ahead

With the passing of the Rs 58,514 crore budget, the Himachal Pradesh government is setting the stage for significant progress in the state’s infrastructure, public welfare, and economic development. The funding allocated for rural development, agriculture, and social security is expected to have a positive impact on the state’s most vulnerable sections, while the new job opportunities and welfare initiatives will provide much-needed relief to citizens.

As the fiscal year progresses, the government’s ability to manage the revenue and capital deficits will be crucial. However, with the emphasis on development works and strategic welfare measures, the Himachal Pradesh government is hopeful that the coming year will witness significant strides in the state’s growth and prosperity.