Shimla, March 10,
The Budget Session of the Himachal Pradesh Legislative Assembly commenced on Monday with Governor Shiv Pratap Shukla addressing the house for an hour and a half. In his speech, he outlined the state government’s efforts in financial management, horticulture, agriculture, power, and animal husbandry, while acknowledging the fiscal challenges faced by the state.
Financial Constraints and Development Efforts
Governor Shukla highlighted the financial constraints caused by the discontinuation of GST compensation in 2022 and the steady decline of the Revenue Deficit Grant (RDG). The RDG, which stood at ₹11,431 crore in 2020-21, has been reduced to ₹6,258 crore this financial year and is expected to drop further to ₹3,257 crore by the end of the 15th Finance Commission period. Despite these challenges, the state has maintained capital expenditure at ₹6,270 crore to ensure development projects remain on track. Urban expansion has also been prioritized, with 14 new Nagar Panchayats established and several municipal bodies upgraded.
Focus on Horticulture and Agriculture
Horticulture remains a key sector, with an additional 1,255 hectares brought under fruit cultivation. The government has also diversified agricultural production by expanding the cultivation of vegetables, flowers, and spices. To support orchardists, a Universal Carton Policy has been introduced for standardized apple packaging, ensuring better prices. Additionally, ₹78.37 crore has been disbursed to procurement agencies under the Market Intervention Scheme to help farmers secure fair remuneration for their produce.
In the agriculture sector, initiatives such as solar fencing across 83 clusters covering 1,43,492 RMT under the HP-SHIVA scheme have been implemented to protect crops. Fields in 99 clusters covering 1,414 hectares have been prepared for cultivation, with plantation work completed in 325 hectares. Work on 114 lift irrigation schemes is underway and is expected to be completed by March.
Investments in Power and Renewable Energy
Himachal Pradesh’s power sector continues to be a major focus, with investments in hydroelectric and renewable energy projects. The government is working to enhance the efficiency of transmission and distribution networks while exploring solar energy potential to reduce dependency on conventional power sources.
Strengthening Animal Husbandry
The animal husbandry sector has been bolstered through the Him Ganga Scheme, launched as a pilot project in Hamirpur and Kangra. Under this initiative, 264 new dairy committees have been formed, and a fully automated dairy processing plant is being developed in Dagwar, Kangra, to increase milk processing capacity from 1.5 lakh liters to 3 lakh liters per day. The government has also set up 120 automated and 32 digital milk collection units in Mandi, Kullu, and Shimla districts to ensure efficient milk procurement and processing.
To support farmers, the procurement price of cow milk has been increased from ₹31.80 per liter to ₹45 per liter, and buffalo milk from ₹47 per liter to ₹55 per liter. Under the Gopal Scheme, ₹12.5 crore has been allocated for cattle welfare, with incentives for cattle owners whose cows or buffaloes produce 15 liters or more milk per day. Financial assistance has also been provided under the Uttam Pashu Puraskar Yojana.
Commitment to Rural Development and Social Welfare
The government remains committed to rural development and social welfare. The Chief Minister Sukh-Aashray Yojana continues to provide care and education for destitute children. Special relief packages have been offered to disaster-affected families, particularly those impacted by monsoon calamities and fires.
Despite financial limitations, the administration is ensuring sustained investments in key sectors, reinforcing the state’s economic resilience and overall development. The Budget Session will continue with further discussions on the state’s fiscal policies and development plans.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
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