Himachal Pradesh Passes Ambitious Budget Amid Financial Challenges

The Himachal Pradesh Assembly approved the 2026-27 budget, allowing government expenditure of Rs 58,830.30 crore. With a revenue deficit of Rs 6,577 crore and a fiscal deficit of 3.49% GSDP, austerity measures include significant salary deferrals for officials amidst the state's financial strain and halted revenue deficit grants.

The Himachal Pradesh Assembly has approved the budget for the fiscal year 2026-27 and the corresponding Appropriation Bill 2026. This will permit the government to draw Rs 58,830.30 crore from the consolidated fund.

According to the budget presented by Chief Minister Sukhvinder Singh Sukhu, the state faces a revenue deficit of Rs 6,577 crore and a fiscal deficit pegged at Rs 9,698 crore, which is 3.49% of the Gross State Domestic Product (GSDP), within allowable limits.

Faced with the discontinuation of revenue deficit grants by the 16th Finance Commission, the Chief Minister has decided to defer his salary by 50% for six months. This austerity measure extends to a 30% salary deferment for the deputy CM and other ministers, and a 20% deferment for MLAs.

(With inputs from agencies.)