Himachal Pradesh State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Himachal Pradesh FY 2007-08
Himachal Pradesh State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 6,800 crore
(excl. borrowings)
Total Expenditure
Rs 11,300 crore
Fiscal Deficit
4.8%
Rs 1,500 crore
Capital Expenditure
Rs 1,800 crore
Tax Revenue
Rs 2,900 crore
Net to Centre
Interest Payments
Rs 2,200 crore
19% of expenditure
Himachal Pradesh Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Himachal Pradesh Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — Himachal Pradesh 2007-08
The fiscal deficit for Himachal Pradesh in 2007-08 is 4.8% of GSDP (Rs 1,500 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Himachal Pradesh's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 2,200 crore consume 19.5% of total expenditure.
Himachal Pradesh State Budget 2007-08 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 10,800 crore | 100% |
| 1. Revenue Receipts | Rs 6,800 crore | 63.0% |
| a. Own Tax Revenue | Rs 2,900 crore | 26.9% |
| b. Non-Tax Revenue | Rs 1,200 crore | 11.1% |
| B. Total Expenditure | Rs 11,300 crore | 100% |
| 1. Revenue Expenditure | Rs 9,500 crore | 84.1% |
| 2. Capital Expenditure | Rs 1,800 crore | 15.9% |
| of which: Interest Payments | Rs 2,200 crore | 19.5% |
| C. Fiscal Deficit | Rs 1,500 crore | 4.8% of GSDP |
Source: Himachal Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Himachal Pradesh Budget 2007-08 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 11,300 crore with revenue expenditure of Rs 9,500 crore dominating the outlay
- Revenue receipts at Rs 6,800 crore with own tax revenue contributing Rs 2,900 crore
- Revenue deficit of Rs 2,700 crore reflects the structural gap between receipts and committed spending
- Fiscal deficit at 4.8% of GSDP (Rs 1,500 crore) exceeds the 3% FRBM target
- Outstanding debt at Rs 18,200 crore with debt-to-GSDP ratio at a steep 58.1%
- Interest payments of Rs 2,200 crore consume over 32% of revenue receipts
- Capital expenditure limited to Rs 1,800 crore as debt servicing crowds out investment
- Hydropower royalties and tourism revenues anchor non-tax revenue at Rs 1,200 crore
- Apple and horticulture economy continues as the backbone of rural livelihood
- GSDP at Rs 31,300 crore — small mountain economy with high per-capita spending needs
- Salary and pension expenditure absorbs a disproportionate share of revenue spending
- Market borrowings of Rs 1,500 crore add to an already elevated debt stock
Compare Himachal Pradesh Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | — | Rs 11,300 crore |
| Revenue Receipts | — | — | — | — | Rs 6,800 crore |
| Capital Expenditure | — | — | — | — | Rs 1,800 crore |
| Fiscal Deficit (% GSDP) | — | — | — | — | 4.8% |
| Own Tax Revenue | — | — | — | — | Rs 2,900 crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Himachal Pradesh State Budget 2007-08
The Himachal Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Himachal Pradesh Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Himachal Pradesh with other states
Side-by-side comparison of fiscal metrics across Indian states