HP budget lays road map for self-reliance
Tax-free budget stresses on strengthening agriculture and state’s infrastructure; education sector gets highest allocation
With an eye on catalysing systemic change and addressing critical sectors, chief minister (CM) Sukhvinder Singh Sukhu, who also holds the finance portfolio, unveiled a ₹58,444 crore tax-free budget with a commitment to inclusive development and public welfare. The vision, he said, was to make the state “self-reliant” over the next one decade.
The budget is 9.1% higher than the ₹53,413 crore figure for 2023-24 fiscal year and places special emphasis on vital areas including agriculture, infrastructure development, animal husbandry, education, health and digitisation. There is also a big push to make Himachal a green state, the major theme in last year’s budget, also resonates with focus on clean energy.
Listing the restoration of the Old Pension Scheme (OPS) and a ₹680-cr start-up scheme as its achievements from last year, Sukhu said the strategic allocation in the second budget reflects his government’s steadfast dedication to ushering in a new era of progress and prosperity for the state.
Sukhu described the budget as highlighting self-reliant Himachal through systemic change.
“The path of development is difficult, there are obstacles, but we will not let them get in the way of development,” he said, adding that good governance is the ability to take tough decisions during challenging times.
“The government is capable of dealing with any situation. We demonstrated the capability during last year’s monsoon disaster,” he added.
Sukhu said the budget emphasises increased investment in infrastructure spanning sectors of tourism, transport, roads and bridges, and power, while also continuing work to strengthen healthcare, education, and digitisation initiatives.
An upward graph
The CM said the state’s economy is estimated to grow at 7.1% during 2023-24 and per capita income is estimated at ₹2,35,199..
The state’s gross domestic product (GDP) for 2023-24 is estimated to be ₹2,07,430 crore.
“The government proposes to spend ₹9,990 crores for the state development budget during 2024- 25,” he said, adding that ₹2,516 crore have been allocated to the Scheduled Caste Development Programme, ₹899 crores for Tribal Development Programme and ₹110 crores for Backward Area Development Programme. An outlay of ₹5,280 crore, meanwhile, is proposed for central schemes.
With the aim to transform challenges in the state’s development process into opportunities, a Himachal Pradesh Transformation Cell will be established in the planning department.
The cell will provide suggestions to accelerate the development based on best practices followed at local, national and international levels. A Sustainable Development Goals Coordination Centre will be set up in to monitor and evaluate the development programmes.
Education sector at the heart of budget
Proposing a whooping ₹9,560
Around 36,000 farmers to adopt natural farming under Rajiv Gandhi Prakritik Kheti Start-Up Scheme
20 quintals of naturally grown grains per family to be procured at MSP of ₹40 per kg and maize at ₹30 per kg
Chatbot and AI-based tools to be provided on web-enabled agriculture portal, mobile app to access land records
MSP for cow milk raised from ₹38 per litre to ₹45 per litre, buffalo milk from ₹47 to ₹55 per litre
A 32-MW capacity solar power project at Pekhubela, Una; Rajiv Gandhi Start-up Yojana for installation of solar panels at 45% subsidy
Chandratal, Kaza and Tandi in Lahaul-Spiti and Rackchham, Nako, Chango and Khab in Kinnaur to be developed as tourist destinations
All homestay units to be brought under the ambit of the Himachal
Pradesh Tourism Development and Registration Act
crore outlay for education, the chief minister said that educational institutions will be developed as Institutions of Excellence (IOE). The initial target stands at 850 educational institutions, 500 primary schools, 100 high schools, 200 senior secondary schools and 50 degree colleges. For better coordination between schools and encouraging community participation, the “Mera Vidyalaya, Mera Samman” scheme was announced. Under the scheme, office bearers from CM to the block-level officers will adopt one educational institution each, Besides, annual rankings, performance-based grants were also announced.
Taking note of an educated youth being the future of the state, the CM announced Padho Himachal scheme aimed at promoting reading among kids.
The curriculum in the State will be re-evaluated in the context of Constitutional values and the rich cultural heritage of the
5+3+3+4 education system to be implemented in schools, annual rankings and performance-based grants to be introduced
Work on drinking water supply schemes in Jawali, Hamirpur, Baijnath-Paprola and Ner Chowk
Upgradation of 500-km roads and construction of 325-km of new roads and eight bridges
Free healthcare for those above 70 years of age, free education to widows’ children up to the age of 27 under Mukhya Mantri Sukh Arogya Yojana and Shiksha Yojanas
Payment of salary and pension-related arrears in phased manner; arrears related to leave encashment and gratuity to employees retired between January 1, 2016, to December 31, 2021, from March
Instalment of dearness allowance at the rate of 4% from April
State will be given representation in it, he said.
₹582-crore for agriculture
Describing agriculture as the backbone of the state’s economy, the CM announced Rajiv Gandhi Prakritik Kheti Start-up Yojana as the third component of ₹680crore Rajiv Gandhi Start-up Yojana aimed at increasing farmer income.
“Through the budget the government has tried to strengthen the rural economy,” Sukhu said, adding that the previous governments ignored agriculture and horticulture that had disillusioned farmers.
Talking to the media after presenting the budget, the CM said farmers will have to be made self-reliant to make Himachal self-reliant.
Ten farmers from each panchayat will be encouraged to take up chemical-free farming, making way for around 36,000 farmers adopting natural farming.
Himachal Pradesh Transformation Cell to address developmental challenges
Centre of Excellence for vegetable nursery production
Fully-automated milk products plant at Dhagwar, Kangra
Bhed Bakri Paalak Protsahan Yojana for livestock care
Centre of Excellence in Horticulture
Vehicle-scrapping facility centres to be set up
Mukhya Mantri Harit Vikas Chhattravriti Yojana for rural development
Industrial Promotion and Investment Policy,
2024
Start-up Policy 2024
Himachal Pradesh Mines and Minerals Policy 2024
Model Drug Prevention and Rehabilitation Centre
Centre of Excellence for Education of Divyangjans in Kandaghat for higher education of persons with disabilities
Those already in the practice will be given priority. To motivate unemployed youth to natural farming, a maximum of 20 quintals of naturally grown grains per family will be procured at a minimum support price (MSP) of ₹40 per kg and maize at ₹30 per kg.
The CM also announced the formation of a state-level task force to tackle the stray cattle menace.
Besides, a ₹531-crore outlay was announced for the horticulture sector. Push was also given to the contentious universal cartons, which the CM said will be used from the upcoming apple season in 2024. Earlier, there was a tendency to package more than the prescribed layers of the apple to increase the weight of the box, a practice that was highly unfavourable to growers.
Seventy-five new irrigation schemes will be set up, as will a Centre of Excellence in Horticulture as a one-stop resource centre
for all the needs related to quality, skill, tourism and marketing, state-of-the-art fruit processing units in sub-tropical areas
Improved healthcare
Sukhu said the increasing number of cancer patients in Himachal was a matter of concern and a State Cancer Institute will be set up at the Hamirpur Medical College with the latest state-ofthe-art diagnostic and treatment facilities at a cost of ₹100 crore.
Arrear, DA delight
The budget also mentions payment of arrears related to salary and pension of employees and pensioners to start in phased manner from March 1, 2024 and related to leave encashment and gratuity in respect of employees retired between January 1, 2016 to December 31, 2021, starts on March 1.
Instalment of dearness allowance will also be handed out at the rate of 4% from April 1, 2024.
Public debt
Loan recovery