Shimla: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented the much-anticipated ₹58,514 crore budget for 2025-26, keeping it tax-free while juggling financial challenges.
The budget aims to strengthen the agrarian economy, push for sustainable tourism, and enhance public services despite a mounting revenue deficit.
He announced a bill to bring the drug peddlers to justice and constitution of the De-Addiction Board.
Fiscal Snapshot: A Tightrope Walk
- Total Revenue Receipts: ₹42,343 crore
- Total Revenue Expenditure: ₹48,733 crore
- Revenue Deficit: ₹6,390 crore
- Fiscal Deficit: ₹10,338 crore (4.04% of the state’s GDP)
With financial constraints looming large, the government has played a careful balancing act, allocating resources strategically while avoiding new taxes.
Takeaways from the Budget:
Boost for Farmers and Rural Economy
- Milk Price Hike: Dairy farmers get a shot in the arm as the government increases milk prices by ₹6 per litre. Cow milk now costs ₹51/litre, and buffalo milk is priced at ₹61/litre.
- Natural Farming Expansion: The state aims to rope in 1 lakh more farmers into natural farming, pushing for eco-friendly agriculture.
- MNREGA Wage Hike: The daily wage for MNREGA workers rises from ₹300 to ₹320, giving rural employment a slight boost.
- Daily Wagers Win: Wages for daily wagers also increase from ₹400 to ₹425.
Tourism and Infrastructure: A New Vision
- Eco-Tourism Push: The state eyes its tea estates as potential eco-tourism hotspots, while religious tourism gets a facelift. Tea estates eco-tourism hubs.
- Urban Mobility Leap: The government plans to introduce 500 electric buses and start the much-awaited Shimla Ropeway project to ease traffic congestion.
Education Overhaul
- Separate Directorates for Schools & Colleges: In a bid to improve efficiency, the education department will now have dedicated directorates for schools and higher education.
Challenges & Critical Take
Despite a revenue deficit of ₹6,390 crore, Sukhu’s government has avoided additional taxes, focusing instead on economic reforms.
But with a fiscal deficit standing at 4.04% of GDP, questions arise about how the government plans to fund these ambitious projects.
While dairy farmers and rural workers have reasons to cheer, the real test will be effective implementation.
The success of the eco-tourism push and urban mobility projects depends on efficient execution and long-term planning.
The Road Ahead
Himachal’s 2025-26 budget is a mix of optimism and caution. While the government is making significant promises, fiscal sustainability remains a looming concern. The next challenge? Execution on the ground.
Key Announcements in the Budget
📌 Solar Power Boost – Youth setting up solar projects up to 250 kW will get a 5% interest subsidy. Non-tribal areas get a 4% subsidy up to 1 MW, beyond which it's 3%.
📌 Forest Rights Act Implementation – Committees will be restructured and training will be provided for faster implementation.
📌 Online Public Services & AI Integration – Over 14 lakh transactions have been recorded in the e-service portal, which will now get AI integration.
📌 Him Pariwar ID Initiative – 76.3 lakh individuals have been issued Him Pariwar IDs, which will now be linked to welfare schemes.
📌 State Single Sign-On System – Over 30 citizen-centric services integrated into a unified platform.
📌 IT and Software Development – Software Technology Parks in Mehli (Shimla) and Chaitadu (Kangra) to create 500-650 jobs.
📌 Drone Taxis for Transport & Agriculture – Drone hubs to be set up in Hamirpur, Mandi, and Kangra.
📌 Housing Projects – ₹1,200 crore to be invested in residential colonies in Rajpur, Brindavan, Rampur, Rajwadi, and Dharampur.
📌 Electric Buses & Public Transport Overhaul – 500 electric buses will be added in 2025-26, and Shimla will get new luxury vehicles & e-buses. A ₹1,540 crore urban transport project covering 14.79 km in Shimla is also on the way.
📌 Railway Expansion –
🔹 Bhanupalli-Bilaspur railway project estimated at ₹10,000 crore, with the state already contributing ₹1,150 crore.
🔹 Baddi-Chandigarh railway project at ₹1,600 crore, with ₹348 crore already paid.
📌 Tourism & Infrastructure –
✅ Automatic driving test track in Haroli (Una).
✅ Cruise tourism & water sports projects.
✅ EV charging stations at 41 locations under the PPP model.
🍕 Spice park in Hamirpur for agrobased industry.
The startup scheme for Small Traders and dhaba owners.
The Potatoes Processing unit in Haroli Una.
In the 2025-26 budget presented by Chief Minister Sukhvinder Singh Sukhu, the allocation of each ₹100 is as follows:
Salaries and Pensions: Approximately ₹57 is allocated to salaries and pensions for government employees and retirees.
Loan Interest Payments: Around ₹15 is dedicated to servicing interest on the state's debt.
Developmental and Other Expenditures: The remaining ₹24 is earmarked for various developmental projects and other expenditures.
Honorarium Increases:
The budget includes several measures to enhance the honorarium for various categories of professional and workers:
For doctors, CM increased the stipend to Rs 0ne lakh and Rs 1.30 lakh per month.
ASHA Workers: An increase of ₹300 per month, bringing their monthly honorarium to ₹5,500.
Silai Teachers: A raise of ₹500 per month.
Mid-Day Meal Workers: An increment of ₹500 per month, resulting in a monthly honorarium of ₹4,500.
Jal Rakshaks (Education Department): An increase of ₹600 per month, totaling ₹5,000 per month.
Water Guards: A raise of ₹300 per month, bringing their monthly honorarium to ₹5,300.
Multi-Purpose Workers (Jal Shakti Vibhag): An increment of ₹600 per month, resulting in a monthly honorarium of ₹5,000.
Para Fitters and Pump Operators: A raise of ₹300 per month, totaling ₹6,300 per month.
Panchayat Chowkidars: An increase of ₹1,000 per month, bringing their monthly honorarium to ₹8,000.
Revenue Chowkidars: A raise of ₹300 per month, totaling ₹5,800 per month.
Revenue Lambardaars: An increment of ₹500 per month, resulting in a monthly honorarium of ₹4,200.
SMC Teachers: An increase of ₹1,900 per month.
IT Teachers: A raise of ₹1,900 per month.
Special Police Officers (SPOs): An increment of ₹500 per month.
These measures reflect the government's commitment to improving the welfare of its workforce and ensuring the efficient delivery of public services.
🔥 Opposition Calls It a ‘Budget of Broken Dreams’ – Jai Ram Thakur Slams CM Sukhu! 🔥
Leader of Opposition Jai Ram Thakur didn’t hold back and slammed the budget, calling it a "document of unrealistic promises with no financial backing!" He questioned why the government failed to announce sector-wise allocations, saying:
🗣️ "This budget is nothing but a bundle of false hopes. The government is sinking under its own financial mismanagement, and now it’s just making announcements without any concrete plan!"
What do you think? Is this budget a game-changer or just another political gimmick?
Comment below! 👇
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🔹 #CM_Sukhu
🔹 #JaiRamThakur
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