Dharamshala, Dec. 7 -- The tax revenue of Himachal Pradesh is expected to decrease by Rs.1,726.55 crore due to decrease in receipt from state goods and services tax, land revenue and state excise, a government data tabled in the legislative assembly during its winter session showed.The information on Form-5 under Rule-7 of the HP Fiscal Responsibility and Budget Management Rules, 2005, for financial year 2025-26 was placed before the House by chief minister Sukhvinder Singh Sukhu on Friday. "On the recommendations of 56th GST Council meeting recently, GST rates were rationalised from September 22 by the Union government by abolishing 12% and 28% slab rate and introducing 40% tax slab for sin goods due to which receipts on account of state goods and services tax are expected to decrease during the year 2025-26 as well as in subsequent financial years. Receipt of Rs.1,000 crore is not expected due to procedural delays in special assessment of land revenue under The Himachal Pradesh Land Revenue (Amendment) Act, 2025," the information tabled in the house states. However, it adds that the non-tax revenue is expected to remain at the level of budget estimates. In the budget estimates for the current year (2025-26), the tax revenue was pegged at Rs.1,6101.10 crore, which is higher than the latest estimates of Rs.14,374.55 crore. According to the information tabled in the House, the centrally sponsored scheme grants are expected to increase by Rs.1,662.73 crore. "This is due to increase in receipts under the NDRF, Pradhan Mantri Awas Yojana (PMAY), MGNREGA, compensation to Renuka Ji dam oustees, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Krishi Sinchai Yojana, National Ayush Mission, establishment of new nursing colleges and upgrade of government medical colleges, etc.," it adds. Moreover, the expenditure on centrally sponsored schemes is expected to increase by Rs.1,299.19 crore due to receipt of more funds under NDRF, PMAY, MGNREGA, compensation to Renuka Ji dam oustees, etc. The fiscal deficit is expected to be Rs.12,114 crore as compared to budget estimates of Rs.10,337.97 crore. Thus the fiscal deficit as a percentage of GSDP is expected to be 4.74%. As per the information shared by CM Sukhu in the House, Himachal being a hill state/special category state, is significantly dependent on revenue deficit grants, to meet its chronic revenue deficit. The 15th Finance Commission has recommended lesser revenue deficit grant in 2025-26 to the tune of Rs.3,000 crore compared to 2024-25. Increasing natural disasters have also affected the state's revenue. The state government has proposed a slew of remedial measures for fiscal management. The medium term fiscal policy strategy of the state government will be to increase availability of financial resources. "The state government will be focusing on reducing unproductive expenses. The government has notified the Himachal Pradesh Sadbhawana Legacy Cases Resolution Scheme, 2025, Phase-II for enhancement of revenues. The government has also rationalised various institutions which would be helpful in curtailing expenditure. The government has also introduced cesses to meet expenditure on specific schemes," the information tabled in the House states....