Himachal Pradesh State Budget 2017-18 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Himachal Pradesh FY 2017-18
Himachal Pradesh State Budget 2017-18 Budget at a Glance
Total Receipts
Rs 26,200 crore
+11.5%
Total Expenditure
Rs 33,000 crore
+14.6%
Fiscal Deficit
4.8%
Rs 5,800 crore
Capital Expenditure
Rs 4,200 crore
+16.7%
Tax Revenue
Rs 8,800 crore
+11.4%
Interest Payments
Rs 4,200 crore
13% of expenditure
Himachal Pradesh Revenue Receipts 2017-18
Own tax revenue vs non-tax revenue breakdown
Himachal Pradesh Expenditure Breakdown 2017-18
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP — Himachal Pradesh 2017-18
The fiscal deficit for Himachal Pradesh in 2017-18 is 4.8% of GSDP (Rs 5,800 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 4,200 crore consume 12.7% of total expenditure.
Himachal Pradesh State Budget 2017-18 — Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 33,200 crore | 100% |
| 1. Revenue Receipts | Rs 26,200 crore | 78.9% |
| a. Own Tax Revenue | Rs 8,800 crore | 26.5% |
| b. Non-Tax Revenue | Rs 5,800 crore | 17.5% |
| B. Total Expenditure | Rs 33,000 crore | 100% |
| 1. Revenue Expenditure | Rs 28,800 crore | 87.3% |
| 2. Capital Expenditure | Rs 4,200 crore | 12.7% |
| of which: Interest Payments | Rs 4,200 crore | 12.7% |
| C. Fiscal Deficit | Rs 5,800 crore | 4.8% of GSDP |
Source: Himachal Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Himachal Pradesh Budget 2017-18 Analysis & Highlights
Key Highlights
- Total expenditure at Rs 33,000 crore under the new BJP government following December 2017 elections
- Revenue receipts of Rs 26,200 crore with own tax revenue at Rs 8,800 crore
- Revenue deficit of Rs 2,600 crore as the new government inherits pre-election spending commitments
- Fiscal deficit at 4.8% of GSDP (Rs 5,800 crore), remaining above FRBM norms
- Outstanding debt at Rs 47,500 crore with debt-to-GSDP at 39.6%
- Interest payments at Rs 4,200 crore absorb 16% of revenue receipts
- Capital expenditure at Rs 4,200 crore with focus on roads and Atal Tunnel project support
- GST implementation in July 2017 disrupts state revenue flows initially
- Non-tax revenue at Rs 5,800 crore supported by robust hydropower royalties
- Transition from VAT to GST creates short-term compliance challenges for hill businesses
- Apple production bounces back with a good crop in Shimla and Kinnaur districts
- GSDP at Rs 1,20,000 crore with services sector driving growth
Compare Himachal Pradesh Budget — Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2013-14 | 2014-15 | 2015-16 | 2016-17 | 2017-18 |
|---|---|---|---|---|---|
| Total Expenditure | — | — | — | Rs 28,800 crore | Rs 33,000 crore |
| Revenue Receipts | — | — | — | Rs 23,500 crore | Rs 26,200 crore |
| Capital Expenditure | — | — | — | Rs 3,600 crore | Rs 4,200 crore |
| Fiscal Deficit (% GSDP) | — | — | — | 5.0% | 4.8% |
| Own Tax Revenue | — | — | — | Rs 7,900 crore | Rs 8,800 crore |
Columns showing "—" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Himachal Pradesh State Budget 2017-18
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