In a first, HP CM slashes budget outlay by Rs.3,586 cr
Shimla, March 22 -- Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Saturday presented a budget that saw the overall outlay shrink for the first time in the state's history. Slashing the budget size by Rs.3,586 crore-down from last year's Rs.58,514 crore to Rs.54,928 crore-the CM termed the move a testament to his government's "himmat (courage)" to tackle a mounting debt trap left by the previous BJP regime.
The House erupted in chaos as Sukhu blamed the discontinuation of the Revenue Deficit Grant (RDG) and the end of GST compensation for the state's financial distress. He directly accused the BJP of pushing Himachal into a debt trap, stating that the crisis could have been avoided had they settled outstanding loans. When the CM suggested that those who did not support the state on the RDG had betrayed Himachal's interests, BJP legislators, led by leader of opposition and former chief minister Jai Ram Thakur, stormed the well. After a 20-minute standoff, the CM resumed his speech.
Defending his "Green Budget", Sukhu slammed the Centre and the Opposition for denying Himachal's rightful assets, including the Shanan Power Project and the 12% free power share. Despite the cuts, he vowed to strengthen the rural economy and fulfil all 10 election guarantees, including the Old Pension Scheme (OPS) and Mahila Nidhi. "We will not let fiscal challenges hamper development," he said, noting the state is moving toward self-reliance.
To streamline resources, the CM announced a drive to reduce unproductive expenditure and close "unwanted institutes". He further allocated Rs.500 crore to finish 300 incomplete projects identified by the government and Rs.500 crore for rural development.
Highlighting welfare measures, Sukhu said under the newly launched 'Mukhyamantri Apna Sukhi Parivar Yojana', 300 units of free electricity have been announced for 1 lakh poor families. "The schemes we have brought will benefit the common people. We conducted surveys to identify Below Poverty Line families and reach people at the grassroots," he said.
Social security measures were expanded, including increasing pensions for visually impaired persons up to Rs.3,000 per month.
Addressing the infrastructure legacy of the previous term, he said that the government would ensure the "optimum use" of buildings constructed by the BJP rather than leaving them idle.
The budget prioritises the rural economy with a Rs.734 crore allocation for animal husbandry and the establishment of a State Kisan Commission, and launching a Rs.300 crore scheme for nomadic communities, along with Rs.62 crore for poultry development and a push for natural farming under the Rajiv Gandhi Prakrit Krishi Yojana. In the tourism sector, which contributes nearly 8% to the GSDP, the government plans to expand Kangra airport and promote eco-tourism via public-private partnerships.
Major infrastructure projects include a Rs.400 crore Central Business District in Shimla and a 24x7 water supply scheme for the capital. To bolster employment, the state proposed a cyber city at Waknaghat and 500 campus placement drives, alongside a new industrial policy focusing on AI and data science.
In education and governance, the government announced the introduction of four-year undergraduate programmes, expansion of CBSE curriculum.
The health sector received an allocation of Rs.2,868 crore, for betterments, including modernisation of medical colleges, ICU expansion, robotic surgery facilities, and tele-oncology services.
Milk procurement prices have been hiked by Rs.10.
The Himachal government to come up with three modern townships in the Shivalik hills. "Him Chandigarh" will be established in Sheetalpur area of Solan district and "Him Panchkula Township" in Sirmaur district. "Kangra Valley Township" will be built in the Dhauladhar area. The budget emphasised green initiatives such as electric buses, carbon tourism parks and biodiversity conservation, while social initiatives include anti-drug programmes, orphan care facilities, and recruitment of women police officers....
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