Shimla, Mar 17 (PTI) With a focus on tourism, rural development and green energy, Chief Minister Sukhvinder Singh Sukhu on Monday presented the annual Budget of Rs 58,514 crore for 2025-26.

While presenting his third annual Budget for FY26, Sukhu said the year 2025-26 is full of financial challenges as revenue deficit grant has been reduced and GST compensation has been stopped which will impact the state's economy.

The Revenue Deficit Grant (RDG) has been reduced from Rs 10,949 crore in 2021-22 to Rs 3,257 in 2025-26, while Himachal Pradesh incurred a loss of Rs 9,478 crore till 2023-24, despite Good and service Tax (GST) compensation given by the centre to the state, he said.

The government will focus on promoting religious and eco-tourism besides exploring lesser-known tourist destinations, he said, adding that tea estates would be developed as eco-tourism destinations.

Operators were selected for seven eco-tourism sites in 2024 and 78 new eco-tourism sites would be allocated in the next phase and revenue of Rs 200 crore would be generated in the next five years.

Informing that the debt liability of the state has risen to Rs 1,04,729 crore out of which Rs 29,046 lakh have been taken by the present government, he said 70 per cent of the loan taken in the past two years was spent on repayment of loan taken by the previous government and its interest component. Only Rs 8,093 was spent on developmental activities.

The Chief Minister also announced to give arrears of pensioners in the age bracket of 70-75 years in the first phase in May. He said that the previous BJP government had left liabilities of arrears of about Rs 10,000 crore of government employees.

Forest cover of Himachal Pradesh is the lung of North India, he said, and cited an estimate that the ecological services in form of soil, water, clean air and favorable climate amounts to Rs 90,000 crore annually and the state government is presenting its case for its invaluable contribution before the 16th finance commission.

He announced a hike of Rs 6 in the minimum support price of cow milk from Rs 45 to Rs 51 per litre and Buffalo milk from Rs 55 to Rs 61 per litre.

Sukhu said that a target has been set to bring one lakh farmers under natural farming in 2025-26. So far about 1.58 lakh farmers have taken to natural farming.

Farmers growing kachi haldi (raw turmeric) naturally will get Minimum Support Price (MSP) of Rs 90 per kg, he said, adding that the state government plans to set up a Spice Park in Hamirpur.

Daily wages of workers engaged in Mahatma Gandhi National Rural Employment Guarantee Act was increased by Rs 20 from Rs 300 to Rs 320 per day, the CM said.

In order to combat drug abuse in Himachal Pradesh, the CM announced the constitution of a Special Task Force (STF) and said that Himachal Pradesh Prevention of Continuing Unlawful Activity and Control of Organised Crime Act 2025 will be introduced in the House to prevent, control and address illegal activities and organized crime.

He said that about 500 electric buses will be purchased in 2025-26 and the Shimla Ropeway project will be started in the next fiscal year.

He also announced several schemes for agriculturists, women, disabled and children and said that separate directorates for school and colleges would be constituted. PTI BPL DRR

Revenue deficit reduction alters state fiscal space and prompts budgetary emphasis on tourism, rural development and green energy. The 2025-26 budget realigns state finances following reductions in the Revenue Deficit Grant and stopping of GST compensation, noting increased debt largely used to service prior liabilities. It implements targeted measures: MSP increases for milk and raw turmeric, a Spice Park, expansion of eco-tourism, electric bus procurement and Shimla Ropeway, MGNREGA wage rise, phased pension arrears for older pensioners, a natural farming expansion target, new social-support schemes, separate education directorates, and a Special Task Force with proposed legislation to address organised crime.