Himachal CM Sukhu presents Rs 58,514 crore deficit budget

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday presented a populist but deficit budget of Rs 58,514 crore for the next fiscal year, focusing on strengthening the agrarian economy, healthcare, job creation, and eco-tourism.

CM Sukhu, who also holds the Finance portfolio, arrived at the Legislative Assembly driving his personal Alto car before delivering his 98-page budget speech in Hindi, which lasted nearly three hours.

He announced that the total fiscal deficit for 2025-26 is projected at Rs 10,338 crore, amounting to 4.04% of the state’s Gross Domestic Product (GDP). The total revenue receipts are estimated to be Rs 42,343 crore, while total revenue expenditure is projected at Rs 48,733 crore, resulting in a revenue deficit of Rs 6,390 crore.

CM Sukhu cautioned that 2025-26 will be one of the toughest years for the state economically but assured that the government would continue to fight for the state’s legitimate dues.

“The Revenue Deficit Grant (RDG) has dropped to Rs 3,257 crore for 2025-26 from Rs 6,258 crore last year, which will worsen our financial situation,” he explained.

He also mentioned that Himachal Pradesh is awaiting the release of Rs 9,000 crore in Post Disaster Need Assessment (PDNA) relief for damages from the 2023 monsoon, along with Rs 9,000 crore held by the Centre for National Pension System (NPS) employees.

Key Announcements:

• Daily wages under MGNREGA increased from Rs 300 to Rs 320.
• Daily wages for workers raised from Rs 400 to Rs 425.
• Honorarium of Panchayati Raj and urban local body representatives increased.
• 25,000 new jobs announced, including 1,000 Rogi Mitras in healthcare.
• Cow milk price raised to Rs 51 per litre (up from Rs 45), and buffalo milk to Rs 61 per litre (up from Rs 55).

CM Sukhu admitted that nearly 70% of the state’s loans are being used to repay previous debts and interest payments. Out of every rupee, 25 paise will go toward salaries, 20 paise for pensions, 12 paise for interest payments, 10 paise for debt repayment, and 9 paise for grants to autonomous bodies — leaving only 24 paise for development work.

“The focus of this budget is to bring the state’s economy back on track,” CM Sukhu said, blaming the previous BJP regime for leaving behind a debt burden of Rs 76,185 crore when his government took office in December 2022.