Shimla – The Economic Survey 2024-25 has revealed that 57.26 percent of Himachal Pradesh’s total budget for the financial year 2024-25 is allocated to revenue expenditure, amounting to ₹46,667 crore. This expenditure, which includes salaries, pensions, interest payments, and other administrative costs, constitutes 14.41 percent of the state’s Gross State Domestic Product (GSDP).
Deputy Chief Minister Mukesh Agnihotri, while presenting the Economic Survey 2024-25, stated that despite economic challenges, Himachal Pradesh has registered an estimated GSDP growth of 10.2 percent at current prices for the financial year. The secondary sector is projected to contribute 45.3 percent to the state’s GSVA, while the tertiary sector is estimated to have the highest share at 57.26 percent.
The Economic Survey also highlighted the state’s financial commitments, with capital expenditure for the fiscal year 2024-25 (BE) estimated at ₹6,270 crore, which is 2.70 percent of the total GSDP. This marks a marginal increase of 3.99 percent compared to the ₹6,029 crore spent in the financial year 2022-23. Meanwhile, the state’s committed expenditure, including salary and pension payments, is projected at 57.26 percent of the budget. This has raised concerns over the sustainability of the government’s fiscal management, given the state’s significant debt burden.
The report projects a growth rate of 10.2 percent in GSDP at current prices for 2024-25, a slight increase from the 9.9 percent recorded in 2023-24. The industrial sector remains a crucial contributor, with an estimated Gross State Value Added of 45.3 percent. The construction sub-sector within the industry is expected to show a 9.4 percent growth rate. Meanwhile, the secondary sector’s GSVA at constant prices is expected to reach 10.2 percent, indicating a stable economic trajectory.
Despite these positive projections, fiscal concerns remain. The state’s total capital expenditure for 2024-25 is projected at ₹6,270 crore, constituting 2.7 percent of the GSDP. While this reflects a slight increase from ₹6,029 crore in the previous financial year, concerns persist over the growing revenue expenditure, which could challenge the government’s fiscal stability.
Deputy Chief Minister Mukesh Agnihotri acknowledged these challenges, stating that economic recovery is being driven by focused efforts to boost industry and enhance state revenues. He pointed out that despite fiscal constraints, the government is working towards bolstering the secondary sector, which has emerged as a key contributor to the state’s economic growth.
With the economic growth rate estimated at 10.2 percent for 2024-25, the government is positioning the state on a trajectory of economic recovery. However, balancing rising revenue expenditure while fostering industrial and infrastructural growth will be crucial in ensuring sustainable fiscal health for Himachal Pradesh.
