Himachal Budget Session 2025: Balancing Financial Challenges with Development Initiatives
The Budget Session of the Himachal Pradesh Legislative Assembly kicked off on Monday, marked by Governor Shiv Pratap Shukla’s extensive address that lasted an hour and a half. In his speech, the Governor shed light on the state government’s strategic efforts across financial management, horticulture, agriculture, power, and animal husbandry, while candidly acknowledging the tough fiscal challenges the state faces.
Navigating Financial Constraints Without Compromising Development
Governor Shukla highlighted the financial setbacks caused by the discontinuation of GST compensation in 2022 and the gradual reduction of the Revenue Deficit Grant (RDG). The RDG, which was ₹11,431 crore in 2020-21, has decreased significantly to ₹6,258 crore this financial year and is expected to fall further to ₹3,257 crore by the end of the 15th Finance Commission period. Despite these financial hurdles, the government has upheld capital expenditure at ₹6,270 crore to keep development projects on track. In a move to boost urban growth, 14 new Nagar Panchayats have been formed, and several municipal bodies have been upgraded.
Empowering Horticulture and Agriculture for Economic Growth
Horticulture continues to be a cornerstone of Himachal’s economy, with an additional 1,255 hectares now under fruit cultivation. The government is also promoting diversified farming by increasing the cultivation of vegetables, flowers, and spices. A notable initiative, the Universal Carton Policy, aims to standardize apple packaging, ensuring that farmers receive better prices. Moreover, ₹78.37 crore has been distributed to procurement agencies under the Market Intervention Scheme to secure fair compensation for farmers.
To safeguard crops, the HP-SHIVA scheme has introduced solar fencing across 83 clusters covering 1,43,492 RMT. Fields in 99 clusters encompassing 1,414 hectares have been prepared for cultivation, with plantation work completed on 325 hectares. Additionally, 114 lift irrigation schemes are underway and slated for completion by March, strengthening irrigation infrastructure.
Harnessing Power and Renewable Energy Potential
The state government is keen on tapping into renewable energy to reduce reliance on conventional power sources. Investments in hydroelectric and solar energy projects are ongoing, with efforts to upgrade transmission and distribution networks to enhance efficiency.
Strengthening Animal Husbandry with Modern Initiatives
Animal husbandry is witnessing a transformation through the Him Ganga Scheme, piloted in Hamirpur and Kangra. The initiative has led to the formation of 264 new dairy committees and the development of a fully automated dairy processing plant in Dagwar, Kangra, which will boost milk processing capacity from 1.5 lakh liters to 3 lakh liters per day. In Mandi, Kullu, and Shimla districts, 120 automated and 32 digital milk collection units have been set up to streamline milk procurement.
The government has increased the procurement price of cow milk from ₹31.80 to ₹45 per liter and buffalo milk from ₹47 to ₹55 per liter. The Gopal Scheme, with an allocation of ₹12.5 crore, incentivizes cattle owners whose cows or buffaloes produce 15 liters or more of milk per day. Financial support has also been provided under the Uttam Pashu Puraskar Yojana to promote animal welfare.
Uplifting Rural Communities and Ensuring Social Welfare
Rural development and social welfare remain high on the government’s agenda. The Chief Minister Sukh-Aashray Yojana continues to offer care and education to destitute children. Meanwhile, disaster-affected families, particularly those impacted by monsoon and fire-related calamities, have received special relief packages.
Moving Forward Despite Challenges
Despite fiscal limitations, the Himachal Pradesh government remains steadfast in its commitment to holistic development, focusing on key sectors while ensuring economic resilience. As the Budget Session progresses, further discussions on fiscal policies and development strategies are expected to take center stage.
