Agri, tourism push in

No new taxes proposed; CM Sukhu says debt liability has risen to ₹1,04,729 crore; green energy another thrust area

- Shailee Dogra

SHIMLA: Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Monday presented a ₹58,514-crore budget for 2025-26, focusing on rural infrastructure development and green energy in the hill state.

Despite financial challenges faced by the state, no new taxes have been proposed for the next financial year.

Reading out his third annual budget, Sukhu, who also holds the finance portfolio, said 2025-26 was full of financial challenges for the state as its revenue deficit grant (RDG) has been reduced and GST compensation stopped. The budgeted speech lasted two hours and 55 minutes.

The revenue deficit of the state has been estimated at ₹6,390 crore.

The CM said that in 2025-26, the revenue receipts are estimated to be ₹42,343 crore and the total expenditure is projected at ₹48,733 crore.

"The RDG has come down to ₹3,257 crore in 2025-26 from ₹6,258 crore last year, which will compound our problems," he said, adding that the state is awaiting the release of ₹9,000 crore post disaster need assessment (PDNA) relief for damages suffered in the 2023 monsoon.

The fiscal deficit budget estimate is projected at ₹10,338 crore, which is 4.04% of the state's Gross Domestic Product (GDP).