From Deficit to Surplus: Sukhu Government Turns Himachal into a ‘Revenue-Generating State’

Shimla | Diary Times News Bureau

In a historic fiscal turnaround, the Sukhu-led Himachal Pradesh government has transformed the state from a deficit economy into a revenue-surplus one. With stronger financial management, reduced debt, and legal victories boosting revenue, Himachal is now emerging as a model of transparent, self-reliant governance focused on welfare, investment, and sustainable growth.

The government led by Chief Minister Thakur Sukhvinder Singh Sukhu has achieved a remarkable fiscal and administrative transformation, steering Himachal Pradesh from a revenue deficit into a ‘revenue-surplus’ state for the first time in its history.

Triumphs for Himachal’s Rights

The Sukhu government secured two major legal victories that have bolstered the state’s financial and ownership position:

• Wildflower Hall: After a landmark court verdict, Himachal Pradesh has become the sole owner of the iconic Wildflower Hall property.
• Karchham–Wangtoo Hydropower Project: Following a prolonged legal battle, the state’s royalty share has been raised from 12% to 18%, ensuring greater long-term revenue.

Historic Success in Financial Management

• For FY 2024–25, Himachal Pradesh recorded a revenue surplus of ₹2,776 crore, marking the first-ever surplus in the state’s financial history.
• Under the previous government, the state had registered a revenue deficit of ₹762 crore.

Reduced Debt Burden

• The total debt burden has been brought down to ₹27,764 crore (as of March 31, 2025) from nearly ₹31,000 crore earlier.
• Several financial restructuring and reform measures were implemented to strengthen fiscal discipline and reduce borrowing dependence.

Strong Revenue Mobilization

• The government generated ₹315 crore in additional revenue in FY 2024–25.
• Attracted ₹280 crore in new capital investments, enhancing infrastructure and development funding.

Spending Discipline and Administrative Reforms

• Introduced strict controls on non-essential expenditure, achieving savings of nearly 20%.
• Ensured timely payment of salaries and pensions to government employees.
• Focused on administrative efficiency and fiscal prudence through better resource allocation.

Industrial Growth and Investment Push

• Rolled out the New Investment Policy 2025 to boost industrial growth.
• Approved 315 new industrial projects, expected to generate over 31,000 jobs.
• Major investments have flowed into electronics, tourism, and agri-processing sectors.

Welfare and Social Security Measures

• Implemented a 50% increase in pensions under social security schemes.
• Introduced special programs for women and farmers.
• Allocated ₹960 crore for healthcare and education improvements.
• Secured a ₹3,000 crore JICA-funded project to strengthen health infrastructure across the state.

Transparency and Good Governance

• Prioritized e-governance and digital transparency, introducing e-Office, paperless Secretariat, and online treasury systems.
• Launched the ‘CM Live Portal’ for direct citizen engagement and public grievance redressal.

Employment and Youth Empowerment

• Focused on creating jobs across 18 new industrial zones.
• Established a ₹250 crore Startup Fund to encourage youth entrepreneurship.
• Introduced mobile skill labs to enhance vocational training and employability.

Education and Healthcare Upgrades

• Allocated ₹401 crore in additional funding for education.
• Constructed 25 new school buildings and 13 new hospital blocks.
• Added 50 new ambulance units to improve emergency response services.

A Milestone in Fiscal Stability

In just three years, the Sukhu administration has achieved fiscal balance for the first time in the state’s history — a transformation that marks Himachal’s emergence as a “self-reliant, revenue-generating government.”