Shimla, March 17,
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu today presented the state’s budget for the financial year 2025-26, amounting to Rs 58,514 crore. The budget outlines the government’s fiscal strategy, detailing both revenue receipts and expenditure plans. Here’s a comprehensive look at the revenue figures and how every 100 rupees of taxpayer money is allocated across various expenses, reflecting the state’s priorities and challenges.
Support Independent Journalism Complete Your Membership
Choose Your Membership
Expenditure breakdown: How every 100 Rupees is spent
Out of every 100 rupees spent from the Rs 58,514 crore budget:
25 rupees (Rs 14,716 crore) goes towards salaries for government employees, supporting around 3.5 lakh workers. This significant allocation underscores the state’s commitment to its workforce.
20 rupees (Rs 11,577 crore) is allocated for pensions, catering to retirees and fulfilling promises like the restoration of the Old Pension Scheme (OPS).
12 rupees (Rs 6738.85 crore) covers interest payments and subsidies, reflecting the cost of servicing debt and supporting essential services like power and agriculture.
10 rupees (Rs 5840.14 crore) is dedicated to debt repayment, addressing the state’s fiscal obligations amid a rising loan burden.
9 rupees (Rs 5,266.26 crore) funds grants to autonomous institutions, aiding bodies that contribute to public welfare independently.
24 rupees (Rs 14,043.36 crore) remains for all other expenses, including vital development works such as infrastructure (roads, bridges), education, healthcare, and green initiatives like solar energy projects.
Revenue figures: Where the Money comes from
The total revenue receipts for 2025-26 are estimated at Rs 46,176 crore (excluding borrowings), providing the backbone for the state’s expenditure. Here’s the breakdown of the actual revenue figures:
State’s own Tax Revenue amounts to Rs 20,291 crore – This includes taxes like GST, excise, and other state levies, forming the largest chunk of the state’s self-generated funds.
A significant share in Central Taxes: Devolution from the central government’s divisible pool of taxes, reflecting Himachal’s share as per Finance Commission recommendations.
Also Grants from the Centre: Contributions for centrally sponsored schemes, disaster relief, and other grants-in-aid to support state initiatives.
Additionally, the state plans to borrow to bridge the fiscal gap, bringing the total receipts (including borrowings) to Rs 58,514 crore. This highlights a dependency on both central support and loans, with own tax revenue constituting roughly 44% of the revenue receipts.
Fiscal reality and challenges
The budget reveals a sobering picture: 49 rupees out of every 100 is consumed by salaries and pensions alone, leaving just over half for other needs. With almost 22 rupees tied up in interest and debt repayment, only 24 rupees is available for capital investments and miscellaneous services.
The fiscal deficit for 2025-26 is projected at Rs 10,338 crore (approximately 4.5% of GSDP), indicating the gap between total expenditure and revenue receipts (excluding borrowings). The revenue deficit stands at Rs 4,513 crore (about 2% of GSDP), showing the state’s reliance on borrowing to meet even recurring expenses.
The government has emphasized employee welfare, with nearly half the budget securing salaries and pensions, alongside initiatives like hiking MGNREGA wages and milk prices to boost rural incomes. However, with only a quarter of the budget left for development—covering critical areas like healthcare, education, and eco-tourism—the administration faces the challenge of balancing obligations with progress.
Critics argue that the Rs 14,043.36 crore for “other expenses” may fall short of addressing the needs of Himachal’s 73 lakh residents, especially beyond the government workforce.
As Himachal Pradesh navigates economic pressures, this Rs 58,514 crore budget reflects cautious optimism. With revenue heavily reliant on central grants (31%) and borrowings, and expenditure skewed towards committed costs, the state aims to leverage its limited discretionary funds for sustainable growth, banking on sectors like agriculture and green energy to shape its future.
