SHIMLA, March 22: Chief Minister Sukhvinder Singh Sukhu presented the Himachal Pradesh Budget 2026-27 with a total outlay of ₹54,928 crore, aimed at supporting rural incomes, jobs and infrastructure while managing a sharp revenue gap.
Below are the 10 biggest, high-impact announcements from the budget — what they mean and the immediate numbers you need to know.
1) Total outlay and revenue gap
Total budget: ₹54,928 crore. Projected revenue receipts: ₹40,361 crore; revenue expenditure: ₹46,938 crore, leaving a revenue deficit of ₹6,577 crore — the central fiscal problem driving many choices in the budget.
2) Outlay trimmed — austerity signal
The overall outlay was reduced by about ₹3,586 crore from earlier estimates as the government tightened spending to manage the deficit. This reduction frames several subsequent measures.
3) Temporary salary deferments (symbolic but political)
Sukhu announced temporary deferment of parts of salaries: 50% of his own salary, ~30% for ministers, and 20% for MLAs and certain appointments for six months — largely symbolic but
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4) Kangra Aerocity (big infrastructure push)
A flagship Kangra Aerocity and aerotropolis idea was included with capital provisioning (media reports peg this near ₹3,300 crore) to expand tourism and connectivity in Kangra — a long-term growth bet if executed.
5) Milk procurement price hike & dairy investment
The government announced higher procurement prices for milk (reported ₹10/litre rise in some coverage) and signed MoUs with NDDB to strengthen dairy processing (new processing plants and chilling centres). This is meant to shore up rural incomes.
6) New fuel (orphan & widow) cess up to ₹5/litre
A proposal to levy a cess of up to ₹5 per litre on petrol and diesel — described as an “orphan and widow cess” — was introduced to create a dedicated funding stream for social welfare schemes. The proposal sparked debate in the House.
7) Support to agriculture & horticulture (apple economy)
Measures include MSP-style support for certain produce, seed production subsidy (reported ~₹5,000 per bigha) and schemes to protect crops from wildlife and boost value chains. These targets focus on stabilizing rural incomes.
8) Fisheries, forest targets and renewable push
Budget lines include support for fisheries (reservoir fish MSP schemes) and a stated aim to increase forest cover. The state also continues to expand renewable generation — hydropower and solar remain a revenue pillar.
9) Welfare protection — but targeted charging
Despite fiscal stress, the government retained key welfare spending (women’s programs, poorest households). The use of targeted cesses and user charges reflects an attempt to balance social protection with revenue needs.
10) Political fallout & law-and-order headlines during the session
The budget session saw heated exchanges — notably the arrest of STF personnel in the LSD trafficking probe — which coloured debate around governance and accountability as the budget was rolled out. This political context will affect implementation momentum.
