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Himachal Pradesh budget 2025-26: No new taxes, Focus on farmers, jobs, and tourism

Himachalscape bureau March 17, 2025 3 minutes read

Shimla, March 17,

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Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented a ₹58,514 crore budget for 2025-26, with no new taxes. The state’s revenue expenditure is projected at ₹48,733 crore, with a revenue deficit of ₹6,390 crore and a fiscal deficit of ₹10,338 crore, about 4.04% of the state’s GDP.

The budget focuses on financial relief for employees, rural welfare, job creation, and sustainable tourism. ₹425 crore has been allocated for clearing pending salary and pension arrears, with phased payments beginning on May 15, 2025. State government employees will receive a 3% Dearness Allowance hike, and daily wage workers’ pay will rise to ₹425 per day, while MNREGA workers will get ₹320 per day. Outsourced employees will receive a minimum monthly salary of ₹12,750.

In the agricultural sector, a Loan Interest Subvention Scheme has been introduced, providing a 50% interest subsidy on farm loans up to ₹3 lakh, with ₹50 crore allocated. The government has raised the minimum support price for maize to ₹40 per kg and wheat to ₹60 per kg, along with a freight subsidy of ₹2 per kg. Natural turmeric will be procured at ₹90 per kg to boost farmers’ incomes. The price of cow milk has been increased to ₹51 per litre, and buffalo milk to ₹61 per litre, with a transport subsidy for milk collection centers.

Employment generation remains a key focus, with the government announcing the recruitment of 25,000 new posts, including positions for college staff, Ayush medical officers, police constables, Panchayat Secretaries, para-workers, and multipurpose workers. The MLA Priority Scheme’s outlay has been raised from ₹195 crore to ₹200 crore. Small businesses will receive support under the Mukhya Mantri Laghu Dukandar Kalyan Yojana, offering a one-time loan settlement of up to ₹1 lakh, with the government covering the interest and ₹100 crore allocated for this initiative.

Tourism and infrastructure development have also received a boost. The Mukhyamantri Paryatan Start-up Yojana will encourage private investment in 200 new hotels, ranging from 3-star to 7-star categories. Religious tourism will be enhanced with the development of international-level complexes at Mata Chintpurni, Mata Jawalaji Temple, and Mata Naina Devi Temple. The state plans to develop eco-tourism centers, planetariums, and wellness resorts, with a ₹250 crore eco-tourism center leased to private entrepreneurs. Environmental sustainability is a priority, with a 40% subsidy announced to convert 3,000 diesel and petrol taxis into electric vehicles. Renewable energy will receive a push, with 3-5% subsidies for solar projects in tribal and remote areas.

Under the Climate Resilient Villages program, 100 climate-sensitive villages will be developed with smart agriculture and renewable energy microgrids. The Rajiv Gandhi Van Samvardhan Yojana aims to bring 5,000 hectares under forest cover, with ₹2.40 lakh allocated for land development and ₹6.40 lakh for ensuring new plantations’ survival.

Social welfare initiatives include the expansion of the Indira Gandhi Payari Behan Sukh Saman Nidhi Yojana to benefit all girls turning 21 between January 1, 2025, and March 31, 2026. The scheme will also extend to home helpers from June 2025. Social pension schemes will see 37,000 new beneficiaries added in 2025-26.

The budget emphasizes economic relief, rural support, employment generation, and sustainable tourism while addressing the state’s fiscal challenges.

Himachalscape bureau

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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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