On Monday, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu unveiled a tax-free budget for 2025-26, totaling Rs 58,514 crore, aimed at bolstering the rural economy during the state legislative assembly session. In addition to prioritizing rural development, the government has also introduced measures to benefit various societal segments, including state employees. Sukhu announced nearly a dozen new initiatives as part of the budget.

The Chief Minister, who also serves as the Finance Minister, highlighted in his 98-page budget speech that the state’s projected income for the fiscal year 2025-26 is Rs 42,343 crore, while the estimated total expenditure stands at Rs 48,733 crore. This results in a revenue deficit of Rs 6,390 crore and a total fiscal deficit anticipated at Rs 10,338 crore, accounting for 4.04% of the state’s GDP.

Sukhu stated that out of every Rs 100 spent in the upcoming financial year, Rs 24 will be allocated to development initiatives. The budget also earmarks Rs 25 for salaries, Rs 20 for pensions, Rs 12 for interest payments, Rs 10 for loan repayments, and Rs 9 for grants to autonomous institutions.

To support the rural economy, the Chief Minister announced an increase in the support price for cow milk from Rs 45 to Rs 51 and buffalo milk from Rs 55 to Rs 61. The support price for naturally grown maize will rise from Rs 30 to Rs 40 per kg, and for wheat, from Rs 40 to Rs 60 per kg. Additionally, turmeric will be purchased at Rs 90 per kg.

A new Agriculture Loan Interest Subsidy Scheme will be initiated to assist farmers facing land auction due to unpaid agricultural loans, with the government covering 50% of the interest on the principal amount under a One-Time Settlement Policy.

Sukhu also announced a 3% installment of dearness allowance (DA) for state government employees and plans to clear all arrears for pensioners aged over 70 as per the recommendations of the Sixth Pay Commission, with payments set to commence on May 15. Furthermore, salary arrears for all categories of state employees and officers will be paid in phases.

Daily wage workers will see their wages rise by Rs 25, while outsourced workers will receive a minimum monthly salary of Rs 12,750. Honorarium increases include Rs 500 for Anganwadi workers, Rs 300 for mini Anganwadi workers, assistants, and ASHA workers, and Rs 500 for various other roles including mid-day meal coordinators, sewing teachers, and water carriers. MNREGA workers will enjoy a Rs 20 increase in their daily wages.

The budget includes stipends for postgraduate doctors in the state’s medical colleges, raising first through third-year stipends to Rs 1 lakh monthly and those for DNB Super Specialists and Senior Residents to Rs 1.30 lakh per month.

The Chief Minister announced plans to create 25,000 new government jobs in 2025-26, encompassing various roles, including 1,000 in Higher Education, 200 in the AYUSH department, 217 para-medical positions, and 1226 police constables.

A new Chief Minister Tourism Startup Scheme for Home Stay Units will be launched, along with plans to attract the private sector to establish 200 hotels ranging from three to seven stars in rural areas under a new scheme.

To enhance community involvement in forest management, the Rajiv Van Sanvardhan Yojana will be implemented with an allocation of Rs 100 crore. This scheme will include Yuvak and Mahila Mandals as well as Farmer Producer Organizations (FPOs), providing them with an annual grant of Rs 1 lakh for plantation and conservation efforts.

An additional 37,000 beneficiaries will be integrated into social pension schemes in the upcoming financial year. Sukhu also announced the start of the Samman Nidhi, providing Rs 1,500 to all daughters of the state who turn 21 years old between January 1, 2025, and March 31, 2026, under the Indira Gandhi Pyari Behna Sukh Samman Nidhi Yojana.