CHANDIGARH: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a tax-free budget with an outlay of Rs 58,514 crore for the year 2025-26.
The budget focuses on strengthening the agrarian economy through the participation of farmers, rural youth and women besides improving healthcare facilities.
He also announced the constitution of a Special Task Force (STF) to combat drug abuse in Himachal Pradesh. The government will focus on promoting religious and eco-tourism besides exploring lesser-known tourist destinations, he informed.
Sukhu who also holds the Finance portfolio arrived at the assembly to present his third budget in his personal Alto car.
In two and half hour speech, he read the 98-page budget in Hindi and informed that the budget aims to accelerate efforts towards making the state self-reliant.
The budget ensures the conservation of the environment and natural resources during the development process along with transforming the rural economy.
He further added that the budget focuses on agriculture, animal husbandry as well as social security.
Sukhu announced new schemes in this year's budget with an emphasis on agriculture and allied sectors and tourism. One of the major announcements in the budget was a price hike for cow and buffalo milk, aimed at benefiting dairy farmers in the state.
The price of cow milk will rise from Rs 45 to Rs 51 per litre, while buffalo milk will increase from Rs 55 to Rs 61 per litre.
The move comes as part of a broader effort to support the agricultural community, with the government striving to provide fair compensation for milk producers.
To boost religious tourism, Sukhu noted the government’s commitment to exploring lesser-known religious and cultural destinations within the state, hoping to increase the influx of both domestic and international visitors.
He also announced the development of tea estates into eco-tourism hubs, turning lush green areas into attractive destinations for visitors seeking a more nature-focused experience.
Emphasising the target to bring one lakh farmers under natural farming in 2025-26, Sukhu said that so far over 1.58 lakh farmers have turned to natural farming.
Farmers growing kachi haldi (raw turmeric) naturally will get a minimum support price of Rs 90 per kg, he said.
He also added that the state government plans to set up a Spice Park in Hamirpur. Sukhu said that the daily wages of workers engaged in Mahatma Gandhi National Rural Employment Guarantee Act increased by Rs 20 from Rs 300 to Rs 320 per day.
He said the total fiscal deficit in 2025-26 is expected to be Rs 10,338 crore, which is 4.04 per cent of the state's Gross Domestic Product.
The total revenue receipts are estimated to be Rs 42,343 crore, and the total revenue expenditure is projected to be Rs 48,733 crore. The total revenue deficit is estimated to be Rs 6,390 crore.
"The Revenue Deficit Grant (RDG) has come down to Rs 3257 crore in 2025-26 from Rs 6258 crore last year, which will compound our problems further,’’ he said.
Informing that the debt liability of the state has risen to Rs 1,04,729 crore out of which Rs 29,046 lakh have been taken by the present government, he said 70 per cent of the loan taken in the past two years was spent on repayment of loans taken by the previous government and its interest component.
He said that out of every rupee, only 24 paisa would be left for development works, as 25 paise would be spent on salaries, 20 paise on pensions, 12 paise on interest payments, 10 paise on debt payments, and 9 paise for grants to autonomous bodies.
"The focus of the budget is to bring back the derailed economy of the state back on track. We formed the government on December 11, 2022 inheriting huge financial liabilities left behind by the previous BJP regime, including a debt burden of Rs 76,185 crore,’’ he said.
Sukhu cautioned that 2025-26 is likely to be one of the toughest years for the state economically and said that his government will continue to fight to get the state its legitimate due.
He also announced several schemes for agriculturists, women, disabled and children and said that separate directorates for schools and colleges would be constituted.
He informed that about 500 electric buses will be purchased in 2025-26 and the Shimla Ropeway project will be started in the next fiscal year.
Sukhu said that about 500 electric buses will be purchased in 2025-26 and the Shimla Ropeway project will be started in the next fiscal year.
He also announced several schemes for agriculturists, women, disabled and children and said that separate directorates for school and colleges would be constituted.
He said it is because of the imposition of strict conditions on raising of loans and funding under externally aided projects that Himachal is getting economically neglected.