HP Fiscal Deficit to Rise to 5.82% of SGDP

Dharamshala (HP), Dec 23 (PTI) Fiscal deficit of Himachal Pradesh is expected at 5.82 per cent of the Gross State Domestic Product (GSDP), higher than projected deficit of 4.61 per cent in 2023-24 due to a rise in liabilities such as salary, pension, interest payment and social security.

The tax revenue is likely to decrease by Rs 752.33 crore and the revenue deficit would be Rs 1,368.81 crore, more than anticipated, as per the Fiscal Responsibility and Budget Management (FRMB) report tabled in the house by Chief Minister Sukhvinder Singh Sukhu on Saturday.

Further, the expenditure on pension is likely to be increased by Rs 621.22 crore from Rs 8,693 crore to Rs 9,315 crore , primary deficit would increase from Rs 4,338.13 crore to Rs 6,953.72 crore.

The government has assured to bring down the deficit by curtailing expenditure and resource mobilisation.

The total committed liability of the government are projected to increase from Rs 29,88,177 crore in 2023-24 to Rs 32,34,477 in 2024-25, Rs 34,75,859 crore in 2025-26 and Rs 37,36,240 crore in 2025-26 and the expenditure on salaries and pension alone would be Rs 26,98,388 crore in 2026-27.

However, Rs 1,572 crore additional money would be available for centrally sponsored schemes like PMGSY, NDRF, Smart City and Ayush Mission.