Himachal's Budget 2025-26: Salaries, Pensions Dominate Spending

Himachal Pradesh's budget for 2025-26 prioritizes expenditure on salaries and pensions, consuming nearly half of the budget. Committed liabilities, including interest and debt repayments, stretch the fiscal deficit to Rs 10,337.97 crore. State's tax and non-tax revenues form a significant portion of the budgetary framework.

In the upcoming 2025-26 budget, Himachal Pradesh will prominently allocate funds towards employee salaries and pensions, as declared by Chief Minister Sukhvinder Singh Sukhu. He revealed that Rs 25 out of every hundred rupees will be dedicated to salaries and Rs 20 to pensions, while Rs 24 will facilitate developmental projects.

Interest payments and debt repayments are set to absorb Rs 12 and Rs 10 per every Rs 100, respectively. Moreover, Rs 9 will be directed towards grants for autonomous bodies. Overall, committed expenditures will encompass Rs 76 out of every Rs 100.

The revenue expenditure is pegged at Rs 48,733.04 crore, including allocations for salaries, pensions, interest on debts, and grants-in-aid. Facing an opening deficit of Rs 5,883 crore, the fiscal deficit is projected at Rs 10,337.97 crore. The state anticipates substantial income from its tax and non-tax revenues while sharing in central taxes and GST contributions.

(With inputs from agencies.)