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Himachal Pradesh State Budget 2009-10 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Himachal Pradesh FY 2009-10

Himachal Pradesh State Budget 2009-10 Budget at a Glance

Total Receipts

Rs 8,700 crore

+14.5%

Total Expenditure

Rs 15,000 crore

+16.3%

Fiscal Deficit

5.4%

Rs 2,100 crore

Capital Expenditure

Rs 2,500 crore

+19.0%

Tax Revenue

Rs 3,800 crore

+15.2%

Interest Payments

Rs 2,700 crore

18% of expenditure

Himachal Pradesh Revenue Receipts 2009-10

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 3,800 crore (71.7%)
Non-Tax Revenue
Rs 1,500 crore (28.3%)

Himachal Pradesh Expenditure Breakdown 2009-10

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 83.3%
Capital Expenditure 16.7%

Fiscal Deficit as % of GSDP — Himachal Pradesh 2009-10

The fiscal deficit for Himachal Pradesh in 2009-10 is 5.4% of GSDP (Rs 2,100 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 2,700 crore consume 18.0% of total expenditure.

Himachal Pradesh State Budget 2009-10 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 14,200 crore100%
1. Revenue ReceiptsRs 8,700 crore61.3%
a. Own Tax RevenueRs 3,800 crore26.8%
b. Non-Tax RevenueRs 1,500 crore10.6%
B. Total ExpenditureRs 15,000 crore100%
1. Revenue ExpenditureRs 12,500 crore83.3%
2. Capital ExpenditureRs 2,500 crore16.7%
of which: Interest PaymentsRs 2,700 crore18.0%
C. Fiscal DeficitRs 2,100 crore5.4% of GSDP

Source: Himachal Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.

Himachal Pradesh Budget 2009-10 Analysis & Highlights

Key Highlights

  • Total expenditure rises to Rs 15,000 crore, a 16.3% jump driven by pay revision implementation
  • Revenue receipts at Rs 8,700 crore with own tax revenue of Rs 3,800 crore
  • Revenue deficit at Rs 3,800 crore as Sixth Pay Commission costs inflate the salary bill
  • Fiscal deficit at 5.4% of GSDP (Rs 2,100 crore), the highest in recent years
  • Outstanding debt at Rs 21,800 crore, debt-to-GSDP at 56.4% — still critically high
  • Interest payments at Rs 2,700 crore absorb 31% of revenue receipts
  • Capital expenditure at Rs 2,500 crore increases modestly despite revenue pressures
  • NREGA implementation expands rural expenditure and provides wage employment in hill areas
  • Non-tax revenue at Rs 1,500 crore with hydropower sector contributing steadily
  • Sixth Pay Commission arrears add approximately Rs 1,200 crore to the expenditure bill
  • Market borrowings of Rs 2,200 crore fund the widening fiscal gap
  • GSDP at Rs 38,700 crore — moderate growth as global recovery begins

Compare Himachal Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2005-062006-072007-082008-092009-10
Total Expenditure———Rs 12,900 croreRs 15,000 crore
Revenue Receipts———Rs 7,600 croreRs 8,700 crore
Capital Expenditure———Rs 2,100 croreRs 2,500 crore
Fiscal Deficit (% GSDP)———4.8%5.4%
Own Tax Revenue———Rs 3,300 croreRs 3,800 crore

Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Himachal Pradesh State Budget 2009-10

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.

Compare Himachal Pradesh with other states

Side-by-side comparison of fiscal metrics across Indian states