Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday presented a tax-free budget with an outlay of ₹58,444 crore for the year 2024-25 with a focus on strengthening the rural economy.
Mr. Singh, who holds the portfolio of finance as well, presented the State budget during the ongoing Budget session of the State Assembly in Shimla, where he announced that 4% Dearness Allowance installment for employees would be released from April 1, 2024, for which ₹580 crore will be spent annually.
“Revenue receipts in the year 2024-25 are estimated at ₹42,153 crore and total revenue expenditure is estimated at ₹46,667 crore. Thus, the total revenue loss is estimated at ₹4,514 crore. The fiscal deficit is estimated at ₹10,784 crore, which is 4.75% of the State’s gross domestic product,” said the Chief Minister.
Pointing out that the agriculture sector is the backbone of the State’s economy, which is directly or indirectly linked with about 69% of the State’s population, he announced a new scheme ‘Rajiv Gandhi Prakritik Kheti Start-up Yojana’ aimed at increasing the income of farmers.
“Under this, in the first phase, 10 farmers from each Panchayat will be encouraged for chemical-free farming. As the farmers continue to join this scheme and use cow dung instead of urea and 12- 32-16 fertilizer in the production of wheat and urea in maize. I announce that their grains will be purchased at a minimum support price (MSP). To motivate unemployed youth for natural farming, a maximum of 20 quintals of naturally grown grains per family will be procured by the government at the MSP of ₹40 per kg and maize at the rate of ₹30 per kg,” he said.
Taking a dig at the Bharatiya Janta Party (BJP), Mr. Sukhu alleged that the Himachal government did not receive any special relief package from the Centre despite the unprecedented natural disaster during the last monsoon season, which saw heavy rains and floods.
Mr. Sukhu said that the adverse financial situation that his government inherited from the previous BJP government is known to everyone, and his government is facing many challenges due to financial mismanagement and wasteful expenditure spree practised by the previous BJP government. “Due to wrong policies in the past, total liabilities in the form of loans have risen to ₹87,788 crores. Total debt liabilities have increased from ₹47,906 crore in 2018 to ₹76,651 crore in 2023… However, the present government did not allow the pace of development to slow down due to lack of resources,” he asserted.
“As soon as we assumed power, we took tough decisions and started efforts to mobilize additional resources. Due to changes in state excise policy, an increase of ₹359 crore is expected in state excise duty in 2023-24 as compared to the previous year. Last year, ₹1,370 crores were received as VAT, which is estimated to be ₹1,773 crores by the end of 2023-24. It is estimated that approximately ₹116 crore will be received through ‘Milk Cess’. The resources thus raised will be used for the development and welfare of the people of the State. Our government will make every possible effort to make the state ‘self-reliant’, even if the toughest decisions are required to be taken for this,” he added.
