Chief Minister Sukhvinder Singh Sukhu today presented a Rs 58,514 crore tax-free Budget for the 2025-26 financial year in the Vidhan Sabha today. The thrust of the Budget was on strengthening agriculture and allied sectors, social security benefits to vulnerable sections of society and quality healthcare.
Sukhu, who also holds the finance portfolio, came to the Assembly driving his personal Maruti Alto car to present his third Budget. He read the 98-page Budget speech in Hindi in two hours and 54 minutes, starting with a couplet in Hindi as his wife and Dehra MLA Kamlesh Thakur listened to him with rapt attendance.
The Chief Minister announced six new schemes in the Budget with thrust on the agrarian economy, relief to vulnerable sections of society through social security and strengthening of healthcare facilities.
Sukhu said that a fiscal deficit of Rs 10,338 crore was expected in 2025-26, which was 4.04 per cent of the State Gross Domestic Product. In the Budget estimates presented by the Chief Minister, the total receipts and total expenditure are estimated to be Rs 56,945.34 crore and Rs 58,514.31 crore, respectively. The total revenue receipts are estimated to be Rs 42,343 crore while the total revenue expenditure is projected at Rs 48,733 crore. The total revenue deficit is estimated to be Rs 6,390 crore.
Sukhu said that of every Re 1, only 24 paise would be left for development works, as 25 paise would be spent on salary payment, 20 paise on pensions, 12 paise on interest payment, 10 paise on debt payment and nine paise on grants to autonomous bodies.
The Chief Minister announced three per cent dearness allowance (DA) for government employees, hike in the daily wages of MGNREGA workers from Rs 300 to Rs 320, daily wages from Rs 400 to Rs 425, enhancement in the honorarium of panchayati raj and urban local body representatives, increase in grant on inter-caste marriage from Rs 50,000 to Rs 2 lakh and Rs 37,000 new social security pension. He also announced that 25,000 new jobs would be provided in various government departments.
Sukhu announced increase in the rate of cow milk from Rs 45 to Rs 51 per litre and of buffalo milk from Rs 55 to Rs 61 per litre, increase in the minimum support price (MSP) for maize to Rs 40 per kg and for wheat to Rs 60 per kg, MSP of Rs 90 per kg for raw turmeric and the construction of a spice park at Nadaun in Hamirpur.
A new Rs 100 crore Mukhyamantri Laghu Dookandar Yojana for small fruit vendors, tea stall owners, barbers, ‘paan’ shops, cobblers etc., in urban areas was also announced. It would offer a one-time settlement of up to Rs 1 lakh loan to shopkeepers with more than Rs 10 lakh annual turnover. The Rajiv Gandhi Van Samvardhan Yojana with Rs 100 crore allocation was announced to promote community participation in forest management and expansion by mahila and yuvak mandals.
The Budget also introduced Mukhyamantri Vridhjan Dekhbhal Yojana to provide healthcare at home to those above 70 years of age.
Under the Climate Resilient Villages programme, 100 climate sensitive villages would be identified through Climate Smart Agriculture and Renewable Energy Microgrids.
LEADER SPEAK
Awaiting release of Rs 9,000 cr relief
Himachal is awaiting the release of Rs 9,000 crore Post Disaster Need Assessment relief for losses suffered during the monsoon in 2023 and over Rs 9,000 crore contributions of employees under the NPS lying with the Central Government. — Sukhvinder singh Sukhu, Chief Minister
Directionless, bundle of confusion
It’s a Budget without vision or direction. It’s a bundle of confusion, offering nothing to any section of society. The already worried people will now be even more worried about their own future and that of the state. — Jai Ram Thakur, Leader of Opposition
No mention of Himcare, Ayushman
Around 76 per cent of the Budget is dedicated to general liabilities, leaving only 24 per cent for capital expenditure. Also, the Budget does not have a provision for fulfilling the poll guarantees given by the Congress. There’s no mention of welfare schemes like Himcare and Ayushman. — Rajeev Bindal, BJP state president
Employment oriented
It’s an employment-oriented Budget, focused on development. It addresses the needs of every section of society. The focus on rural economy, increase in wages for MGNREGA workers and daily wage labourers, increase in DA for employees and relief for farmers are commendable decisions. It will provide momentum to the development of the state. — Pratibha Singh, Congress state president
QUICK NOTES
School upgrade, new hostels
Several Government Senior Secondary Schools will be turned into Rajiv Gandhi day boarding schools. The Directorate of Education will be restructured, Rs 3 crore will be allocated for the renovation of the hostel at Sainik School, Sujanpur. Four new hostels will be built for college students in Kangra and schoolgirl hostels will be constructed in Hamirpur and Sujanpur. An Innovation Fund will be established to introduce modern ideas in technical education. The Digital University of Innovation, Entrepreneurship, Skill and Vocational Studies will be set up in Ghumarwin, Bilaspur, on the PPP and self-financing modes.
Solar power projects
The government has proposed to set up a 200 MW solar power project at Damtal in Kangra and 500 kW solar projects in 100 panchayats under the Green Panchayat Scheme. The Shongtong (450 MW) and Integrated Kashang hydroelectric projects will be completed by 2026. The integrated Kashang Hydroelectric Project is set for completion by June 2026. Pump storage projects will be a boost to the power sector and investments from government enterprises will be sought to promote private sector participation. New substations will be built in Kangu (Mandi), Tahliwal (Una), Dharampur (Mandi), Barsaini (Kullu) and other locations. Telangana has shown interest in investing in hydropower projects in the state.
Green energy push
The state government plans to set up 80 e-vehicle charging stations at petrol stations and 41 more along the green corridor and procure 500 e-buses. The Climate Resilient Villages (CRV) Programme will develop 100 villages using renewable energy microgrids and climate-smart agriculture. Dome theatres will be built in Chamba and Shimla. The Plastic Neutral Himachal campaign will eliminate plastic use and the Biodiversity Guardianship Programme will engage the youth in conservation efforts. Electric vehicles will replace conventional ones in Hamirpur government offices. The government will afforest 5,000 hectares, promote community forest management, and invest Rs 200 crore in forest projects.
Rural development
An amount of Rs 452 crore will be spent under the 15th Finance Commission and Rs 467 crore under the State Finance Commission for panchayat development in 2025-2026. Blocks will be reorganised for improved administration and nine extension training centres will strengthen rural institutions. Panchayati raj institutions will manage water schemes and generate revenue through lease arrangements. Development grants will be provided to municipal corporations, councils and newly formed nagar panchayats.
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