Himachal Pradesh Budget 2025-26: Focus on Tourism, Rural Development, Green Energy

Shimla, Mar 17 (PTI) With a focus on tourism, rural development and green energy, Chief Minister Sukhvinder Singh Sukhu on Monday presented the annual Budget of Rs 58,514 crore for 2025-26.

While presenting his third budget, Sukhu said the year 2025-26 is full of financial challenges as revenue deficit grants have been reduced and GST compensation has been stopped which will impact the state's economy.

The Revenue Deficit Grant (RDG) has been reduced from Rs 10,949 crore in 2021-22 to Rs 3,257 in 2025-26, while Himachal Pradesh incurred a loss of Rs 9,478 crore till 2023-24, despite Goods and Service Tax (GST) compensation given by the Centre to the state, he said.

The government will focus on promoting religious and eco-tourism besides exploring lesser-known tourist destinations, he said, adding that tea estates would be developed as eco-tourism destinations.

Operators were selected for seven eco-tourism sites in 2024 and 78 new eco-tourism sites would be allocated in the next phase and revenue of Rs 200 crore would be generated in the next five years.

The present Congress government has taken loans worth Rs 29,046 crore in the past two years 70 per cent of it was spent on repayment of loans taken by the previous government and its interest component. Only Rs 8,693 crore was spent on developmental activities.

The Chief Minister also announced to give arrears of pensioners in the age bracket of 70-75 years in the first phase in May. He said that the previous BJP government had left liabilities of arrears of about Rs 10,000 crore of government employees.

He also announced release of a three per cent dearness allowance from May 15, 2025, the inclusion of women working as domestic help under the Indira Gandhi Pyari Behna Samman yojana under which Rs 1500 would be given per month.

He announced that 37,000 new beneficiaries were added under the Social Security pension scheme, filling 25,000 vacancies in various categories, increasing the daily wages and wages of MGNREGA workers from Rs 400 to Rs 425 and Rs 300 to Rs 320 respectively.

The Chief Minister said that the construction of 14.79 km long Shimla City Ropeway costing Rs 1546.40 crore would be started and private sector investment would be invited to establish 200 three stars to star seven hotels in the state.

Efforts would be made to bring 1-lakh farmers under natural farming and a Minimum Support Price of Rs 40 per kg for maize and Rs 60 per kg for wheat would be given for their produce. So far about 1.58 lakh farmers have taken up natural farming.

The CM said that the subsidy ranging between 40 and 60 per cent would be provided to fishermen for purchasing or replacing the boats as per their eligibility.

The forest cover of Himachal Pradesh is the lung of North India, he said, and cited an estimate that the ecological services in the form of soil, water, clean air and favourable climate amounts to Rs 90,000 crore annually and the state government is presenting its case for its invaluable contribution before the 16th finance commission.

He announced a hike of Rs 6 in the minimum support price of cow milk from Rs 45 to Rs 51 per litre and Buffalo milk from Rs 55 to Rs 61 per litre.

Farmers growing kachi haldi (raw turmeric) naturally will get Minimum Support Price (MSP) of Rs 90 per kg, he said, adding that the state government plans to set up a Spice Park in Hamirpur.

Referring to steps to check drug menace, Chief Minister announced bringing "Himachal Pradesh Prevention of Continuing Unlawful Activity and Organised Crime Act 2025", setting up of Special Task Force to prevent Drug Trafficking, setting up of "Drug Dependence prevention, De-addiction and Rehabilitation Board and focus in rehabilitation of individuals struggling with drug addiction instead of taking punitive action.

He said that about 500 electric buses will be purchased in 2025-26. He also announced several schemes for agriculturists, women, disabled and children and said that separate directorates for school and colleges would be constituted.