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Business EconomyPosted at: Mar 17 2025 6:30PM


HP CM proposes Rs 58514 crore annual outlay for FY 2025-26

Shimla, Mar 17 (UNI) Himachal Pradesh Chief Minister, Sukhvinder Singh Sukhu, presented the state’s annual budget for the financial year 2025-26, with an outlay of Rs 58,514 crore.
The budget does not propose any new taxes but includes a loan waiver and one-time settlement scheme for farmers and small businessmen. Additionally, the Chief Minister announced 12 new schemes during his three-hour-long budget speech.
The estimated revenue expenditure for the year is Rs 48,733 crore, while the revenue receipt is projected at Rs 42,343 crore, resulting in a revenue deficit of Rs 6,390 crore. The fiscal deficit is projected to be Rs 10,338 crore, which is approximately 4.04 percent of the state's Gross Domestic Product (GDP). The previous fiscal year (2024-25) closed with a revenue expenditure of Rs 50,190 crore, a revenue receipt of Rs 43,704 crore, and a revenue deficit of Rs 6,486 crore.
The Chief Minister outlined that for every 100 rupees spent, Rs 25 would go towards salary payments, Rs 20 towards pensions, Rs 12 for interest payments, Rs 10 for debt repayments, Rs 9 for grants to autonomous institutions, and Rs 24 would be allocated for other activities, including capital works.
Additionally, the budget proposed a three per cent Dearness Allowance (DA) for state government employees, effective from May 15, 2025. The daily wage for workers would be raised by Rs 25 to Rs 425, while MNREGA workers would receive an additional Rs 20, raising their daily wage to Rs 320. Outsourced employees would receive a minimum salary of Rs 12,750 per month. The Chief Minister also announced that Rs 425 crore would be allocated for clearing the salary and pension arrears. In the first phase, pension dues for pensioners aged 70-75 years will begin to be paid from May 15, 2025, with salary arrears being cleared in a phased manner, benefiting approximately 1.75 lakh employees.
In the agricultural sector, the government has introduced a Loan Interest Subvention Scheme, offering a one-time settlement policy for farmers. Under this policy, the state will pay 50 percent of the interest on loans up to Rs 3 lakh, allocating Rs 50 crore for the scheme. To support rural incomes, the Chief Minister announced an increase in the minimum support prices (MSP) for maize (from Rs 30 to Rs 40 per kg) and wheat (from Rs 40 to Rs 60 per kg). The government would also provide a freight subsidy of Rs 2 per kg. In addition, the state will procure natural turmeric at Rs 90 per kilogram to boost farmers' incomes, as India is the world's largest producer of turmeric, contributing to 78 percent of global production. The MSP for milk from cows and buffaloes will also increase, with the price for cow milk rising from Rs 45 to Rs 51 per kg and for buffalo milk from Rs 55 to Rs 61 per litre. A subsidy will also be provided for transporting milk to the notified collection centers.
The budget also proposes a hike in honorariums for various local government officials. The honorarium for the Chairman and Vice-Chairman of Zila Parishads will increase by Rs 1,000 per month, while members of Zila Parishads will receive an additional Rs 500. The Chairman and Vice-Chairman of Panchayat Samitis will see a Rs 600 increase, and members of Panchayat Samitis, along with Pradhans, Up-Pradhans, and members of Gram Panchayats, will receive Rs 300 more per month. For urban local bodies, the honorarium for Mayors, Deputy Mayors, and Councillors will be raised by Rs 1,000, while the President and Vice-President of Nagar Parishads will get Rs 600 and Rs 500, respectively. Members of Nagar Panchayats and Up-Pradhans will receive Rs 300 and Rs 400 more per month.
The honorariums of various frontline workers, including Aganwadi workers, sewing instructors, midday meal providers, water carriers in the education department, multi-purpose workers in the IPH Department, and IT teachers, will be increased by Rs 500 per month. Asha workers, Jal Rakshaks, pump operators, revenue lambardars, and SPOS will receive an increase of Rs 300 per month.
The MLA Priority Scheme outlay has been increased from Rs 195 crore to Rs 200 crore, and the state government has announced plans to fill around 25,000 new posts. Among these are 1,000 posts for college staff, 1,000 posts for regularization, 200 posts for Ayush medical officers, 1,226 posts for police constables, and 500 constables who will be promoted. The recruitment process will also fill 853 posts for Panchayat Secretaries, 219 posts for technical assistants, 65 junior engineers, and 4,500 para-workers. Additionally, 2,500 multipurpose workers, 1,276 para-pump operators, and 500 para-fitters will be recruited.
The Mukhya Mantri Laghu Dukandar Kalyan Yojana aims to support small businesses with a turnover of Rs 10 lakh, including fruit and vegetable vendors, tea stall owners, barbers, and small retail shopkeepers. The scheme will offer a one-time settlement loan of up to Rs 1 lakh, with the state government bearing the interest on these loans, allocating Rs 100 crore for the initiative.
In the tourism sector, the government will launch the Mukhyamantri Paryatan Start-up Yojana to encourage private investment in the establishment of 200 hotels, ranging from 3 to 7 stars. Additionally, funds will be provided for the construction of international-level complexes at Mata Chintpurni, Mata Jawalaji Temple, and Mata Naina Devi Temple. The state will also establish zoos, planetariums, and eco-tourism centers, as well as set up five-star wellness centers to promote health tourism. A Rs 250 crore eco-tourism center will be leased to entrepreneurs to establish tourism ventures in the state. The government will also provide 3-5 percent subsidies for solar projects ranging from 250 kW to 1 MW in tribal areas and identified locations like Bara Bhangal, Dodra Kawar, and Kupvi. In addition, 40 percent subsidies will be offered for converting 3,000 diesel and petrol taxis into electric taxis. The Shon Tong Hydroelectric Project (450 MW) is expected to be operational by December 2026.
In environmental initiatives, the government will identify 100 climate-sensitive villages for development through smart agriculture and renewable energy microgrids under the Climate Resilient Villages (CRV) program. Furthermore, the Rajiv Gandhi Van Samvardhan Yojana will bring 5,000 hectares of land under forest cover, with Rs 2.40 lakh allocated for the development of forest land and Rs 6.40 lakh for ensuring the survival of new plantations. The forest department will provide Rs 1 lakh to fence the new plantations under this scheme.
The Indira Gandhi Payari Behan Sukh Saman Nidhi Yojana will be expanded to include all girls turning 21 between January 1, 2025, and March 31, 2026. The scheme will also benefit women working as home helpers, starting from June 2025. In addition, 37,000 new beneficiaries will be included under social pension schemes in 2025-26.
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Tags: #HP CM proposes Rs 58514 crore annual outlay for FY 2025-26
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