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Himachal Pradesh State Budget 2021-22 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Himachal Pradesh FY 2021-22

Himachal Pradesh State Budget 2021-22 Budget at a Glance

Total Receipts

Rs 36,000 crore

+18.0%

Total Expenditure

Rs 48,500 crore

+12.8%

Fiscal Deficit

5.9%

Rs 10,500 crore

Capital Expenditure

Rs 7,500 crore

+21.0%

Tax Revenue

Rs 12,200 crore

+24.5%

Interest Payments

Rs 6,300 crore

13% of expenditure

Himachal Pradesh Revenue Receipts 2021-22

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 12,200 crore (61.0%)
Non-Tax Revenue
Rs 7,800 crore (39.0%)

Himachal Pradesh Expenditure Breakdown 2021-22

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 84.5%
Capital Expenditure 15.5%

Fiscal Deficit as % of GSDP — Himachal Pradesh 2021-22

The fiscal deficit for Himachal Pradesh in 2021-22 is 5.9% of GSDP (Rs 10,500 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 6,300 crore consume 13.0% of total expenditure.

Himachal Pradesh State Budget 2021-22 — Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 47,000 crore100%
1. Revenue ReceiptsRs 36,000 crore76.6%
a. Own Tax RevenueRs 12,200 crore26.0%
b. Non-Tax RevenueRs 7,800 crore16.6%
B. Total ExpenditureRs 48,500 crore100%
1. Revenue ExpenditureRs 41,000 crore84.5%
2. Capital ExpenditureRs 7,500 crore15.5%
of which: Interest PaymentsRs 6,300 crore13.0%
C. Fiscal DeficitRs 10,500 crore5.9% of GSDP

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

Himachal Pradesh Budget 2021-22 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 48,500 crore as post-pandemic recovery drives spending upward
  • Revenue receipts recover to Rs 36,000 crore with tax revenue rebounding to Rs 12,200 crore
  • Revenue deficit at Rs 5,000 crore shows partial improvement from the pandemic peak
  • Fiscal deficit at 5.9% of GSDP (Rs 10,500 crore), still well above FRBM norms
  • Outstanding debt at Rs 79,000 crore with debt-to-GSDP at 44.4%
  • Interest payments at Rs 6,300 crore reflect the higher debt accumulated during COVID
  • Capital expenditure at Rs 7,500 crore as infrastructure investment accelerates
  • Tourism rebounds strongly with record footfall as pent-up demand is released
  • Non-tax revenue at Rs 7,800 crore with hydropower sector performing well
  • Apple production faces climate challenges with erratic rainfall patterns
  • Market borrowings at Rs 8,500 crore continue the elevated post-pandemic trend
  • GSDP at Rs 1,78,000 crore shows strong nominal recovery from pandemic lows

Compare Himachal Pradesh Budget — Recent Years

Year-over-year comparison of key fiscal metrics

Metric2017-182018-192019-202020-212021-22
Total ExpenditureRs 43,000 croreRs 48,500 crore
Revenue ReceiptsRs 30,500 croreRs 36,000 crore
Capital ExpenditureRs 6,200 croreRs 7,500 crore
Fiscal Deficit (% GSDP)7.4%5.9%
Own Tax RevenueRs 9,800 croreRs 12,200 crore

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

Understanding Himachal Pradesh State Budget 2021-22

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