Tax-free Himachal Pradesh budget to focus on religious, eco tourism

Himachal Pradesh chief minister Sukhvinder Singh Sukhu on Monday, 17 March, presented a tax-free budget of Rs 58,514 crore for the 2025-26 financial year, with a focus on strengthening the agrarian economy and promoting religious and eco tourism besides exploring lesser-known tourist destinations.

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.

Focus is on promoting religious tourism and exploring lesser-known tourist destinations, he said and added that tea estates would be developed as eco-tourism destinations, he said.

Informing that the debt liability of the state has risen to Rs 1,04,729 crore of which Rs 29,046 crore 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 crore was spent on development activities.

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 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 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).

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.