Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented the budget estimates for the financial year 2025-26, amounting to Rs 58,514 crore, with a revenue deficit of Rs 6,390 crore.
The budget focuses on providing relief to marginalised sections of society, farmers, and livestock holders while strengthening the rural economy and advancing the goal of developing Himachal Pradesh as a 'Natural and Green State.'
The Chief Minister announced an increase in the Minimum Support Price for cow milk from Rs 45 to Rs 51 per liter and for buffalo milk from Rs 55 to Rs 61 per liter. Farmers or societies delivering milk to Notified Collection Centres located more than two kilometers away will receive a transport subsidy of Rs 2 per liter, ensuring an overall increase of Rs 8 per liter for the milk sold.
Additionally, daily wages in the state will increase by Rs 25 to Rs 425, MGNREGA wages will rise by Rs 20 to Rs 320, and the minimum salary of outsourced employees will be set at Rs 12,750 per month. Honoraria for Anganwadi workers will increase by Rs 500, mini Anganwadi workers and Anganwadi helpers by Rs 300, and ASHA workers by Rs 300.
He announced a 3% Dearness Allowance (DA) for employees starting from May 15, 2025, but did not make a commitment regarding the sixth pay commission liabilities. However, he assured that 25,000 jobs would be created in various public sector categories during the fiscal year 2025-26.
Presenting his third budget as Finance Minister in the Himachal Pradesh Assembly, Sukhu emphasized the government's commitment to 'Vyavastha Parivartan' (systemic change) to improve the state's economy, which, he claimed, had suffered under the previous BJP government.
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He highlighted the financial challenges ahead and stressed the need to mobilize resources to sustain development.
He pointed out that his government inherited a debt of Rs 76,185 crore from the previous administration as of March 31, 2023. Of the total loans taken, Rs 12,266 crore was used for interest payments, and Rs 8,087 crore went towards debt repayment, leaving only Rs 8,693 crore available for developmental activities.
As per the budget estimates for 2025-26, out of every Rs 100 spent, Rs 25 will be allocated to salaries, Rs 20 to pensions, Rs 12 to interest payments, Rs 10 to debt repayments, Rs 9 to grants for autonomous institutions, and the remaining Rs 24 for other expenditures, including capital works.
The estimated economic growth rate for 2024-25 is 6.7%, with an estimated per capita income of Rs 2,57,212, which is Rs 57,050 higher than the national average. The state's estimated Gross Domestic Product for 2024-25 stands at Rs 2,32,185 crore.
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In his speech, which lasted over two and a half hours, Sukhu reiterated his vision of making Himachal Pradesh a 'Natural and Green State.' He emphasized reducing the use of chemicals, fertilizers, and pollution-causing substances across agriculture, horticulture, animal husbandry, forestry, industry, and transport sectors to combat climate change.
To promote chemical-free natural farming, the government plans to increase the Minimum Support Price of naturally produced maize from Rs 30 to Rs 40 per kg, wheat from Rs 40 to Rs 60 per kg, and turmeric to Rs 90 per kg. Farmers transporting their natural produce to collection centers will receive a transport subsidy of Rs 2 per kg.
The Chief Minister announced the introduction of the "Agriculture Loan Interest Subvention Scheme" to support farmers, especially those facing auction of their land due to loan defaults.
Under this scheme, the government will introduce a One-Time Settlement Policy with banks to help farmers repay agricultural loans up to Rs 3 lakh, with 50% of the interest on the principal amount covered by the government. The scheme will incur an expenditure of Rs 50 crore.
Additionally, the government aims to enroll one lakh new farmers in natural farming in 2025-26, linking them to the Him Parivar Register and the Certified Evaluation Tool for Agriculture Resource Analysis (CETARA).
Sukhu underscored Himachal Pradesh’s role as the 'Lungs of North India,' emphasizing the state's contribution to environmental conservation.
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He estimated the state's ecological services, including soil conservation, water preservation, clean air, and a favorable climate, to be worth approximately Rs 90,000 crore annually. However, he lamented the lack of compensation for these services and announced efforts to secure financial recognition from the Government of India and the 16th Finance Commission.
In support of the Green State initiative, the government will procure 500 e-buses for the transport corporation. Sukhu also detailed plans for modernizing healthcare and education.
The government will appoint 1,000 Rogi Mitras (patient assistants) across various health institutions at a monthly honorarium of Rs 15,000 under the Rogi Mitra Yojana.
He announced an increase in stipends for PG students serving as Senior Residents or Tutor Specialists in state medical colleges and AIMSS, Chamiana, raising them from Rs 60,000, Rs 62,000, and Rs 65,000 in the first, second, and third years, respectively, to Rs 1 lakh.
The stipend for DNB-Super Specialists and Senior Residents-Super Specialists (D.M./M.Ch.) will be increased from Rs 60,000, Rs 62,000, and Rs 65,000 to Rs 1.30 lakh.
To enhance accessibility to healthcare services, the government will launch a new app, "Sugam Swasthya," allowing residents to book online appointments from home at six medical colleges, including AIMSS Chamiana and Kamla Nehru Hospital, nine district hospitals, and 36 sub-district hospitals.
This initiative aims to reduce long queues at hospitals and improve the efficiency of healthcare delivery.
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