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Himachal Pradesh State Budget 2019-20 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Himachal Pradesh FY 2019-20

Himachal Pradesh State Budget 2019-20 Budget at a Glance

Total Receipts

Rs 31,200 crore

+5.8%

Total Expenditure

Rs 41,000 crore

+10.2%

Fiscal Deficit

5.8%

Rs 8,800 crore

Capital Expenditure

Rs 5,500 crore

+10.0%

Tax Revenue

Rs 10,500 crore

+7.1%

Interest Payments

Rs 5,200 crore

13% of expenditure

Himachal Pradesh Revenue Receipts 2019-20

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 10,500 crore (60.7%)
Non-Tax Revenue
Rs 6,800 crore (39.3%)

Himachal Pradesh Expenditure Breakdown 2019-20

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 86.6%
Capital Expenditure 13.4%

Fiscal Deficit as % of GSDP — Himachal Pradesh 2019-20

The fiscal deficit for Himachal Pradesh in 2019-20 is 5.8% of GSDP (Rs 8,800 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 5,200 crore consume 12.7% of total expenditure.

Himachal Pradesh State Budget 2019-20 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 40,200 crore100%
1. Revenue ReceiptsRs 31,200 crore77.6%
a. Own Tax RevenueRs 10,500 crore26.1%
b. Non-Tax RevenueRs 6,800 crore16.9%
B. Total ExpenditureRs 41,000 crore100%
1. Revenue ExpenditureRs 35,500 crore86.6%
2. Capital ExpenditureRs 5,500 crore13.4%
of which: Interest PaymentsRs 5,200 crore12.7%
C. Fiscal DeficitRs 8,800 crore5.8% of GSDP

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

Himachal Pradesh Budget 2019-20 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 41,000 crore as the pre-pandemic year sees continued expansion
  • Revenue receipts of Rs 31,200 crore with own tax revenue at Rs 10,500 crore
  • Revenue deficit widens to Rs 4,300 crore amid rising committed expenditure
  • Fiscal deficit at 5.8% of GSDP (Rs 8,800 crore) — the highest in over a decade
  • Outstanding debt surges to Rs 60,000 crore with debt-to-GSDP at 39.5%
  • Interest payments at Rs 5,200 crore absorb 16.7% of revenue receipts
  • Capital expenditure at Rs 5,500 crore maintains the infrastructure investment pace
  • Atal Tunnel construction reaches final stages ahead of 2020 inauguration
  • Market borrowings of Rs 6,500 crore — highest ever for the state
  • Apple and tourism sectors perform well before the pandemic disruption
  • Non-tax revenue at Rs 6,800 crore with hydropower as the reliable backbone
  • GSDP at Rs 1,52,000 crore marks the last year of normal pre-COVID growth

Compare Himachal Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2015-162016-172017-182018-192019-20
Total ExpenditureRs 37,200 croreRs 41,000 crore
Revenue ReceiptsRs 29,500 croreRs 31,200 crore
Capital ExpenditureRs 5,000 croreRs 5,500 crore
Fiscal Deficit (% GSDP)4.8%5.8%
Own Tax RevenueRs 9,800 croreRs 10,500 crore

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

Understanding Himachal Pradesh State Budget 2019-20

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