Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu presented the state's budget on Monday, emphasizing the need for financial self-reliance while addressing the ongoing fiscal challenges. A key highlight of the budget was an increase in milk prices, alongside measures to promote religious tourism and boost natural farming.
Sukhu acknowledged the state's financial difficulties, stating that nearly 70 per cent of the loans taken by the government had been used to repay previous debts and interest payments. He also warned of further financial strain in FY26 due to the reduction in the revenue deficit grant and the discontinuation of GST compensation.
Milk Prices Increased by Rs 6 Per Liter
The budget introduced a hike in milk prices, with cow milk now costing Rs 51 per Liter, up from Rs 45, and buffalo milk priced at Rs 61 per Liter, up from Rs 55. The price adjustment aims to support dairy farmers while addressing cost concerns in the dairy sector.
Tourism Development: A Key Priority
To strengthen the state's economy, Sukhu placed significant emphasis on the promotion of tourism, particularly religious tourism. He proposed initiatives to attract more visitors and explore lesser-known destinations, aiming to enhance the state's revenue through tourism-related activities.
Boost to Natural Farming, MSP for Raw Turmeric
The chief minister laid out an ambitious plan to expand natural farming, targeting an additional one lakh farmers in FY26. So far, 1.58 lakh farmers have already adopted natural farming methods.
In a move to support agricultural growth, Sukhu announced a Minimum Support Price (MSP) of Rs 90 per kg for farmers cultivating kachi haldi (raw turmeric) through natural farming techniques. This measure aims to incentivize sustainable agricultural practices and increase farmer incomes.
Outlook for FY26: Financial Uncertainty Looms
Sukhu cautioned that the coming financial year would be challenging due to the reduction in central grants. The state government will focus on optimizing resources, generating revenue through tourism, and promoting sustainable farming to navigate the fiscal hurdles.
The budget reflects a blend of economic caution and strategic growth initiatives, with a strong push for self-reliance amid financial constraints.
