Chief Minister Sukhvinder Singh Sukhu on Monday presented a tax-free budget of Rs 58,514 crore for the 2025-26 financial year in the Vidhan Sabha, with a focus on strengthening the agrarian economy and improving healthcare facilities.
Sukhu, who holds the Finance portfolio, arrived at the assembly to present his third budget, driving his personal Alto car.
He read the 98-page budget speech in Hindi, taking two hours and 54 minutes. He announced new schemes in this year’s budget, with an emphasis on agriculture and allied sectors and tourism.
Sukhu said the total fiscal deficit in 2025-26 is expected to be Rs 10,338 crore, which is 4.04 percent of the state’s Gross Domestic Product.
The total revenue receipts are estimated to be Rs 42,343 crore, and the total revenue expenditure is projected to be Rs 48,733 crore.
The total revenue deficit is estimated to be Rs 6,390 crore.
The CM said that out of every rupee, only 24 paisa would be left for development works, as 25 paisa would be spent on salaries, Rs 20 on pensions, Rs 12 on interest payments, Rs 10 on debt payments, and Rs 9 for grants to autonomous bodies.
“The focus of the budget is to bring back the derailed economy of the state back on track. We formed the government on December 11, 2022, inheriting huge financial liabilities left behind by the previous BJP regime, including a debt burden of 76,185 crore,” he said.
Right at the outset, the CM cautioned that 2025-26 is likely to be one of the toughest years for the state economically, while adding that his government will continue to fight to get the state its legitimate due.
He said it is because of the imposition of strict conditions on raising of loans and funding under externally aided projects that Himachal is getting economically neglected.
“The Revenue Deficit Grant (RDG) has come down to Rs 3257 crore in 2025-26 from Rs 6258 crore last year, which will compound our problems further,” he said.
He said Himachal is awaiting the release of Rs 9,000 crore Post Disaster Need Assessment (PDNA) relief for damages suffered in the 2023 monsoons, and over Rs 9,000 crore is still lying with the Centre as the share of NPS employees.
The CM announced a hike in daily wages of MNREGA workers from Rs 300 to Rs 320, daily wagers from Rs 400 to Rs 425, and an enhancement in the honorarium of panchayati raj and urban local body representatives.
Sensing that unemployment was an issue of concern, he announced that 25,000 new jobs, including 1,000 Rogi Mitras, will be provided in various departments.
