Himachal Pradesh State Budget 2025-26 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Himachal Pradesh FY 2025-26
Himachal Pradesh State Budget 2025-26 Budget at a Glance
Total Receipts
Rs 42,371 crore
+0.5%
Total Expenditure
Rs 52,709 crore
-0.4%
Fiscal Deficit
4.0%
Rs 10,338 crore
Capital Expenditure
Rs 3,948 crore
-37.0%
Tax Revenue
Rs 16,500 crore
+9.3%
Interest Payments
Rs 7,000 crore
13% of expenditure
Himachal Pradesh Revenue Receipts 2025-26
Own tax revenue vs non-tax revenue breakdown
Himachal Pradesh Expenditure Breakdown 2025-26
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP â Himachal Pradesh 2025-26
The fiscal deficit for Himachal Pradesh in 2025-26 is 4.0% of GSDP (Rs 10,338 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 7,000 crore consume 13.3% of total expenditure.
Himachal Pradesh State Budget 2025-26 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 52,709 crore | 100% |
| 1. Revenue Receipts | Rs 42,371 crore | 80.4% |
| a. Own Tax Revenue | Rs 16,500 crore | 31.3% |
| b. Non-Tax Revenue | Rs 4,000 crore | 7.6% |
| B. Total Expenditure | Rs 52,709 crore | 100% |
| 1. Revenue Expenditure | Rs 48,761 crore | 92.5% |
| 2. Capital Expenditure | Rs 3,948 crore | 7.5% |
| of which: Interest Payments | Rs 7,000 crore | 13.3% |
| C. Fiscal Deficit | Rs 10,338 crore | 4.0% of GSDP |
Source: Himachal Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Himachal Pradesh Department-wise Expenditure 2025-26
Top departments by allocation in Himachal Pradesh for 2025-26
| Department â | Revenue â | Capital â | Total â | Share |
|---|---|---|---|---|
1. Education | Rs 8,200 crore | Rs 500 crore | Rs 8,700 crore | 16.5% |
2. Health & Family Welfare | Rs 3,800 crore | Rs 600 crore | Rs 4,400 crore | 8.3% |
3. Rural Development | Rs 3,200 crore | Rs 800 crore | Rs 4,000 crore | 7.6% |
4. Energy | Rs 3,500 crore | Rs 500 crore | Rs 4,000 crore | 7.6% |
5. Transport & Roads | Rs 2,200 crore | Rs 1,500 crore | Rs 3,700 crore | 7.0% |
6. Police & Home | Rs 2,800 crore | Rs 300 crore | Rs 3,100 crore | 5.9% |
7. Social Welfare | Rs 2,500 crore | Rs 200 crore | Rs 2,700 crore | 5.1% |
8. Agriculture & Allied | Rs 2,200 crore | Rs 400 crore | Rs 2,600 crore | 4.9% |
9. Water Supply & Sanitation | Rs 1,200 crore | Rs 700 crore | Rs 1,900 crore | 3.6% |
10. Urban Development | Rs 1,200 crore | Rs 500 crore | Rs 1,700 crore | 3.2% |
Himachal Pradesh Budget 2025-26 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 52,709 crore, nearly unchanged from 2024-25 BE of Rs 52,965 crore
- Revenue receipts at Rs 42,371 crore with own tax revenue of Rs 16,500 crore
- Revenue deficit of Rs 6,390 crore reflects persistent structural imbalance
- Fiscal deficit at 4.0% of GSDP (Rs 10,338 crore), above FRBM target of 3%
- Dangerously high debt-to-GSDP ratio at 37.2% â among the highest in India
- Interest payments at Rs 7,000 crore consume 16.5% of revenue receipts
- Capital expenditure sharply reduced to Rs 3,948 crore as fiscal space shrinks
- Apple economy and horticulture receive targeted support amid climate change threats
- Hydropower royalties and tourism anchor non-tax revenue at Rs 4,000 crore
- Old Pension Scheme restoration adds to long-term committed expenditure burden
- Education at Rs 8,700 crore remains the largest sectoral allocation
- GSDP at Rs 2,55,636 crore â small economy carrying disproportionate debt load
Compare Himachal Pradesh Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | Rs 52,937 crore | Rs 52,709 crore |
| Revenue Receipts | â | â | â | Rs 42,153 crore | Rs 42,371 crore |
| Capital Expenditure | â | â | â | Rs 6,270 crore | Rs 3,948 crore |
| Fiscal Deficit (% GSDP) | â | â | â | 4.7% | 4.0% |
| Own Tax Revenue | â | â | â | Rs 15,101 crore | Rs 16,500 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Himachal Pradesh State Budget 2025-26
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