Himachal CM Sukhu to present budget tomorrow, focus likely on resource mobilisation

Himachal CM Sukhu to present budget tomorrow, focus likely on resource mobilisation

Sunil Chadha
DHARAMSHALA: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu is set to present his third budget on Monday (March 17, 2025) amid high expectations and pressing financial challenges.


CM Sukhu has hinted at taking bold measures to make the state’s economy self-reliant. The budget, finalised after extensive deliberations with top officials, is expected to introduce significant reforms, particularly in rural development, education and healthcare.

Rural development at the core

The 2025-26 budget is expected to prioritise strengthening the rural economy. The government aims to introduce farmer and horticulturist-centric policies to boost agricultural output and generate employment at the panchayat level.

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The Panchayati Raj and Rural Development Department will play a crucial role in the upcoming fiscal year, with key initiatives such as solar energy parks and electric vehicle charging stations in rural areas receiving higher budgetary allocations.


With an estimated budget surpassing last year’s Rs 58,444 crore, the government faces multiple economic hurdles. Despite the financial strain, CM Sukhu remains committed to resource mobilisation without burdening the public. The ultimate goal is to position Himachal Pradesh as a self-sufficient state by 2026.

Revenue challenges amid fiscal constraints

Himachal Pradesh’s financial situation remains precarious, with the revenue deficit grant shrinking to around Rs 3,000 crore — insufficient even to cover employee salaries and pensions.


Compounding the crisis, the central government has discontinued GST compensation, further tightening the state’s fiscal space. The state also faces restrictions on borrowing, with its Rs 6,600 crore borrowing limit expected to shrink further.


Given these constraints, the budget will strike a balance between funding new initiatives and sustaining existing ones. The government is also expected to push forward its “Green Himachal” mission, introducing fresh policies to promote sustainability.

New revenue streams and policy shifts

To counter financial challenges, the state government is implementing aggressive resource mobilisation strategies.


The new excise policy aims to generate Rs 2,850 crore in annual revenue, marking a significant increase from the previous year. Additionally, revised mining policies are expected to bring in over Rs 500 crore.


One of the biggest anticipated policy shifts is the possible removal of electricity subsidies, which could save the government nearly Rs 1,000 crore.


Instead, subsidies may be restricted to a single meter per household. The hydropower sector is also expected to see revenue growth, with royalty collections projected to rise by Rs 300-400 crore due to new projects coming online.

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Sunil Chadda

Sunil Chadda

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