Shimla, March 17 – HP budget 2023: Cumulative debt 75.43k Cr, per capita expenditure higher than revenue earned

In the budget book of 2023-24 the ledger of accounts has started with an opening balance of minus 828.80 Cr and a total cumulative debt of Rs 75436Cr. Moreover the State having total population of 75.05 Lakh government would receive Rs 50633 as per capita revenue whereas Rs 63833 is the per capita expenditure.  As per the budget outlay, debt projection for the year 2023-24 could be Rs 8353 Cr, whereby meaning that this would increase the state’s cumulative debt to Rs. 83789 Cr. at the end of 23-24 financial year.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu today presented his first budget in Himachal Pradesh Assembly for the financial year 2023-24 proposing annual outlay of 53,413 Crore showing fiscal deficit of  4.61 pc of state GDP.

Sukhu who also holds the portfolio of finance presented tax free populistic budget for keeping upcoming Shimla MC and Next year Lok Sabha election in mind which mainly focus on the resource mobilization, green energy and employment generation and local youth oriented solar power and private investment.

The state revenue receipts are estimated to be Rs 37,999.87  Crore and total revenue expenditure of Rs 42,704 Crore . On the Capital Account, the total receipts would be 13,865.71Cr, comprising of 26.07 crore on account of the recoveries of loans, gross public debt of Rs 12,519.64 Cr and 1,320 Cr from the deposits, advances, remittances and provident fund etc.  Thus, the total receipts during the year would  be 51,865.58 Cr.  On the expenditure side, the revenue expenditure would be Rs 42,703.99 Cr.  Expenditure on Capital Account would be 5,202.38 Cr.  The expenditure on loans (advances) and inter-state settlement of public debt (repayments) would be 19.71 Cr and 5,486.64 Cr respectively.  Thus total expenditure would be 53,412.72 crore.

In the budget estimates for 2023-24, total receipts and cash expenditure are estimated at 51,865.58 Cr and 53,412.72 Cr respectively.  The Revenue Deficit in 2023-24 is likely to be 4,704.12 Cr and the Fiscal Deficit is expected to be Rs  9,900.14 Cr.


Out of every 100 rupees Rs 16.35 comes from central taxes , Rs 25.11 from state taxes , Rs 6.65 from non taxes from Revenue , Rs 25.16 from grant in aid, Rs 24.14 Cr from and Rs 2.54 Cr from advances and deposits.


Out of every 100 rupees 33.05 expenditure goes to General services, Rs 31.64 on Social services, Rs 12.91 on Economic services, Rs 0.04 of Loan advances, Rs 9.74 on capital expenditure and Rs 2.33 on subsidies, Rs 10.27 on Loan payments and Rs  0.02 in grants in Aid.

Also, out of every 100 rupees 26 will be spent on Salary, RS 16 on pension RS 10 each on interest of payment and repayment of loan and Rs 9 as grant to autonomous institutions and Rs 29 will be spend on other capital activities.

Out of 100 rupees expenditure share on different sector, education would be Rs 17, Health 06, Rural Development 04, Agriculture, Horticulture, Animal husbandry and fisheries 03, Public works( road and bridges ) Rs 8 and water supply and Sanitation Rs 03, Social welfare programme Rs 4, Pensions (Civil services) Rs 16, Loan repayment and interest payment Rs ten each, Irrigation & Flood control and  Transport & Tourism Rs 2 each and others Rs 15.

Taxes and Revenue generation
No new tax was levied in the budget however Milk Cess of Rs ten per bottle of liquor will be imposed to increase the income of milk producer.  Efforts for additional resource generation to reduce the loss of GST Compensation, ‘ GST revenue enhancement project will be started, under Sadbhavana Yojana 2023 pending cases under various Acts of traders, manufactures, Wholesalers and retailers will be settled. Changes in excised policy made to make it more transparent and Imposition of water cess on the water used for power generation.

Focus area of the Government
The budget focusses to develop Himachal Pradesh as green Energy state by March 31, 2026, targeting to set up Solar Energy project of 500 mw in 2023-24. 40 pc subsidy to youth of the state for setting up of Solar Energy project with the capacity ranging from Rs 250 kw to 2 mega wat on their own or leased land. Himachal Pradesh will be developed as a Model State for Electric Vehicle. Electrical Vehicles will be encouraged in a phased manner with collaboration of private and public sector. 1500 diesel buses of HRTC to be replaced with e-buses in phased manger with an expenditure of RS 1000 Cr. To make state a leading Green hydrogen based economy a green hydrogen policy would be brought.

In his budget speech, Chief Minister Sukhwinder Singh Sukhu announced to increasing the honorarium of representatives of Panchayati Raj Institutions, increased the honorarium of Zilla chairman president by Rs 5,000 to Rs 20,000 per month and vice chairman  Rs 15,000, Zilla Parishad member Rs 6500, Panchayat Samiti President Rs 9500, Vice President Rs 7000, Panchayat Samiti member Rs 6000 per month.  Apart from this, the honorarium of Gram Panchayat Pradhan has been increased to Rs 6,000, that of Deputy Pradhan Rs 4,000 and Ward member honorarium to Rs 500 per meeting. The honorarium of the Mayor of the Municipal Corporation to Rs 20,000, that of the Deputy Mayor to Rs 15,000 and that of the councilors to Rs 7,000. The honorarium of the chairman of the Municipal council has been increased to 8500, vice-chairman to 7000 rupees, the honorarium of the councilor 3500 per month, while the honorarium of the head, deputy head and members of the city panchayats has been increased by 500 per month.  Apart from this, the honorarium of Anganwadi workers increased to Rs 9500, Anganwadi workers 6600, Sahayika 5200, mid-day mill workers 4000, Education Department’s  water carriers 4400, Jal Rakshaks 5000, Jal Shakti Department’s multipurpose workers 440, para fitter and pump operators has been increased to Rs 6000  per month.  Sukhu has increased the daily wage of laborers by Rs 25 to Rs 375. Apart from this, the minimum wage of outsourced personnel has been increased to Rs 11,250, to Panchayat Chowkidars Rs 7,000, to Revenue Chowkidars Rs 500, and Lambardars Rs 37,00 per month.  Apart from this, the honorarium of sewing teachers, SMC teachers,  teachers and SPOs has been increased by Rs 500. 164 posts of Panchayat Sahayaks and Technical Sahayaks would  be filled on fixed amount.  The daily wage of MNREGA has been increased from Rs 212 to Rs 240, this will benefit nine lakh NREGA workers. 65 percent of NREGA workers are women. In tribal areas, this daily wage has been increased from Rs.266 to Rs.294.

New schemes
Chief Minister proposed 13 new schems in the budget including Mukhyamantri Laghu Shopkeeper Welfare Scheme for shopkeepers, small shopkeepers, such as tailors, barbers, tea vendors, ready-made vendors, will be given subsidy up to 50 percent on the interest charged on loans up to fifty thousand rupees.



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