CHANDIGARH: For the first time, the size of the Himachal Pradesh budget has been reduced as Chief Minister Sukhvinder Singh Sukhu on Saturday presented a Rs 54,928-crore budget for 2026-27 in the state assembly. This is down by Rs 3,586 crore from the Rs 58,514-crore budget for the ongoing fiscal year.
Citing 'financial challenges' due to discontinuation of the Revenue Deficit Grant (RDG), he announced a deferment in salaries for six months for the Chief Minister and the cabinet besides senior officials including Chief Secretary and Director General of Police in an austerity measure. He assured that these will be restored once finances improve.
Sukhu who also holds the finance portfolio was presenting his fourth budget in the state assembly. He blamed the discontinuation of RDG for annual losses of over Rs 8,000 crore and accused the BJP of not supporting the state's interests. He said this was the first time since 1952 that the budget was being presented in the absence of RDG by the central government. "It is unfair and an injustice with the people of Himachal to stop the grant of RDG to the state," he said.
Sukhu said, "The opposition BJP has not sided with the state in these hard times and history will never forget them," drawing immediate reaction from BJP members. The BJP took exception to the language and raised slogans after moving into the well of the House.
He announced that 50 per cent of his own salary, 30 per cent for ministers, and 20 per cent for MLAs would be deferred. The move extends to the bureaucracy, with the chief secretary, director general of police, and other senior officers facing a 30 per cent deferment, while it will be 20 per cent for mid-level officers and the police force. Besides a 3 per cent salary increment for state employees has been stayed for six months. He urged the judiciary to consider similar voluntary deferments.
Despite the financial constraints, Sukhu emphasized that the budget is strongly focused on strengthening the rural economy and uplifting the most vulnerable sections. Also, Rs 500 crore was allocated for rural development and the government announced the ‘Mukhyamantri Apna Sukhi Parivar Yojana’ to provide 300 units of free power and financial aid to one lakh underprivileged families.
"Around 1 lakh such families will be brought under the state government’s direct welfare ambit. These families will be entitled to 300 units of free electricity and benefits under the third phase of the Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojna which provides Rs 1,500 per month to eligible women," he said.
To preserve the pride of shepherds and Puhals, the government will start the PEHEL (Pastoralists Empowerment in Himalayan Ecosystems for Livelihood) Scheme with an outlay of Rs 300 crore.
"This historic initiative will become a strong foundation for more than 40,000 families of Gaddi, Gujjar, Kinnaura, and other related communities. Under this, the each shepherd will receive a digital card, through which they will easily get all government benefits and a complete record of their livestock will be maintained. They will also be provided life insurance, so that in their risky lives they may have a protective shield," he said.
Sukhu announced a hike of Rs 10 for cow milk from Rs 51 to Rs 61 per litre. Buffalo milk price is also up by Rs 10, from Rs 61 to Rs 71 per litre to strengthen the rural economy. "Our goal is that while strengthening the rural economy, money should not go into the hands of middlemen but directly into the hands of my farmer brothers and sisters," he said.
He also announced the constitution of the Himachal Pradesh Rajya Kisan Ayog to protect farmers' interests and address their grievances. Sukhu said 2.32 lakh farmers are engaged in natural organic farming. A dedicated marketing scheme for selling organic products has been launched. He also announced a hike in MSP of organically grown wheat from Rs 60 to 80, maize from Rs 40 to 50 and turmeric from Rs 90 to Rs 150.
Changing weather conditions and dependence on external hybrid seeds have pushed farmers towards chemical inputs. In this context, the state government will establish Seed Villages to ensure seed sovereignty, in which groups of 50 to 100 farmers will produce traditional seeds. In selected villages, a community seed bank will be created. Special attention will be given to climate-resilient crops such as indigenous maize, lentils, red rice, koda, ginger, rajma, black lentils.
The Mukhya Mantri Machhuara Sahayata Yojana has been announced to strengthen the fisheries sector of the state and for the welfare of fishermen. Under this, there will be a Minimum Support Price of Rs 100 per kilogram for reservoir fish to protect fishermen from market fluctuation.
The Mission 32 Percent scheme was also announced in the Budget under which the forest cover of the state, which is currently 29.5 percent, will be increased to 32 percent by 2030.
In the tourism sector, the government has proposed to start a secure Digital Visitor Registration and Tourism Intelligence System in Public Private Mode. Under this system, mandatory digital registration of tourists will be ensured, which will make comprehensive tourism intelligence and visitor tracking possible and also help in presenting the real contribution of the tourism sector to the State’s Gross Domestic Product (GSDP) in a more realistic manner.
Also, the government will bring a plan for the development of a new city named Kangra Aerocity near Kangra Airport, where tourists arriving in the tourism capital will not only get world-class facilities but also comprehensive development of the area around the airport will be ensured.
For the planned and sustainable development of tourism infrastructure in the state, the government will establish a tourism-focused Land Bank. Under this, the land available with the tourism department will be made available to investors for the development of hotels, resorts, home-stay clusters, eco-tourism, adventure tourism, ropeways, convention centers, parking facilities, and other tourism facilities after mapping, classification, and digitalization.
Further, the HiBiSCUS (Himachal Biodiversity Stakeholder-led Conservation Unified Scheme) was announced under which conservation related to medicinal plants, environment, science and technology and climate change, sustainable harvesting, nursery development, and the documentation of traditional knowledge will be promoted.