The Himachal Pradesh Legislative Assembly passed the state budget for the financial year 2025-26 by voice vote on Wednesday. Following its approval, Chief Minister Sukhvinder Singh Sukhu emphasized the government's focus on strengthening the rural economy and providing support to farmers, small shopkeepers, and youth. He stated that this was the government's third budget, aimed at ensuring financial resources directly benefit farmers and horticulturists, with a significant portion allocated to rural development.

To support small shopkeepers, vegetable vendors, and street vendors earning below ₹3 lakh annually, the government introduced interest subsidies, reducing the financial burden for those with loans up to ₹3 lakh. The budget also included provisions to fully cover the educational expenses of children of widowed mothers, ensuring support for vulnerable sections of society.

Addressing government employees, the Chief Minister assured that Dearness Allowance (DA) payments would be released by May 15, as the state was working to stabilize its treasury. He also announced that arrears for employees aged 70 and 75 would be cleared this year, with phased payments for others. The budget prioritizes clean energy initiatives by introducing subsidies for young entrepreneurs investing in solar power projects. A 5% subsidy has been announced for solar power projects in tribal areas, and for 1 MW solar projects costing ₹2 crore, the government will cover 5% of the interest on loans with a 9% interest rate.

To modernize public transport, the budget includes plans to introduce 1,000 new buses while offering subsidies for electric and diesel vehicles. Taxi drivers switching to electric taxis will receive a 40% subsidy, aligning with the government’s focus on sustainability. Sukhu highlighted the budget’s environmental benefits, stating that it incorporated several measures to promote sustainability and reduce the state’s carbon footprint.

Raising concerns over hydropower projects operating in Himachal Pradesh without increased royalty payments, the Chief Minister pointed out that some projects had completed 40 years without any revisions in royalties. He criticized large corporations that have built ₹67,000 crore businesses using Himachal’s water resources while the state has not received its fair share. He announced plans to address this issue with the Union Power Minister and urged opposition leaders to support the demand for increased royalties.

The Himachal Pradesh Appropriation Bill, 2025, authorizes a total expenditure of ₹62,387.61 crore for the financial year 2025-26. Introduced under Article 204 of the Constitution, the budget outlines financial allocations across various sectors, ensuring economic growth and stability for farmers, small businesses, and government employees. Extending his congratulations to the people of the state, Sukhu expressed his commitment to securing Himachal Pradesh’s economic future and ensuring that the state receives its rightful share of national resources.

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