Shimla: Himachal Pradesh Chief Minister presented a budget of ₹58,514 crore for the financial year 2025-26, outlining key fiscal estimates and economic projections for the state. While the budget emphasizes salaries, pensions, and capital works, concerns over the revenue and fiscal deficit persist.
Revenue and Expenditure Estimates
For the ongoing financial year 2024-25, the revised estimates place total revenue receipts at ₹43,704 crore, while revenue expenditure is estimated at ₹50,190 crore. This results in a revenue deficit of ₹6,486 crore.
Looking ahead to 2025-26, the revenue receipts are projected to decline slightly to ₹42,343 crore, with total revenue expenditure estimated at ₹48,733 crore. The revenue deficit for 2025-26 is expected to be ₹6,390 crore, indicating a marginal improvement over the previous year. However, the fiscal deficit remains substantial at ₹10,338 crore, which is 4.04% of the state’s Gross Domestic Product (GSDP).
Budget Allocation Breakdown
As per the budget document, out of every ₹100 spent, ₹25 will go toward salaries, ₹20 toward pensions, ₹12 toward interest payments, and ₹10 toward debt repayments. Additionally, ₹9 will be allocated to grants for autonomous institutions, while the remaining ₹24 will cover other activities, including capital works.
Economic Projections and Growth
Despite fiscal constraints, the state’s economy is projected to grow at a rate of 6.7% during the financial year 2024-25. The per capita income is expected to see a 9.6% increase, reaching ₹2,57,212—₹57,050 higher than the national average. Himachal Pradesh’s Gross Domestic Product (GSDP) for 2024-25 is estimated at ₹2,32,185 crore, reflecting steady economic momentum.
