Himachal Budget 2024-25: Thrust on strengthening rural economy
Pratibha Chauhan
Shimla, February 17
Chief Minister Sukhvinder Singh Sukhu today presented a tax-free agriculture-oriented Budget of Rs 58,444 crore for the financial year 2024-25. The Budget laid the foundation for realising the dream of an ‘Atmanirbhar Himachal’ through a strong rural economy.
The Chief Minister, who also holds the finance portfolio, read the 88-page Budget proposals in nearly two and a half hours amidst the thumping of tables by the treasury benches. The Budget stressed the need for strengthening the rural economy and laid thrust on the promotion of agriculture, horticulture, animal husbandry, fisheries and allied sectors where 69 per cent of the population are engaged. Several initiatives were listed for the promotion of chemical-free natural farming on 1,500 acres. A grant of Rs 150 crore was announced for boosting milk production.
Sukhu announced the release of DA to employees from April 1, 2024, hike in daily wages from Rs 375 to Rs 400, increase in MGNREGA daily wages by Rs 60 and minimum wages of Rs 12,000 for outsourced workers
Sukhu desisted from announcing big schemes and instead announced financial assistance for single women, widows and safai karamcharis, who would be provided Rs 3 lakh for building houses, besides Rs 1,000 per month for the children of widows, destitute persons, divorcees and disabled parents. He also announced seven new schemes and three new policies.
In the education sector, the Chief Minister announced the ‘Padho Himachal’ scheme under which libraries would be set up in 500 educational institutions. He announced Rs 88 crore for setting up 493 libraries in panchayats. A major push was given to sports promotion with a substantial increase in the honorarium of para workers.
Sukhu announced the release of DA to employees from April 1, 2024, which would put a burden of Rs 580 crore on the exchequer, increase in daily wages from Rs 375 to Rs 400, increase in MGNREGA daily wages by Rs 60 and minimum wages of Rs 12,000 for outsourced workers. He also announced a minimum support price (MSP) of Rs 40 and Rs 30 per kg for the purchase of organic wheat and maize grown locally and setting up of 128 marketing yards.
He announced an increase in the MSP for cow milk from Rs 38 to Rs 45 and buffalo milk from Rs 47 to Rs 55, a grant of Rs 50 crore for setting up milk processing plants in Hamirpur and Una, a Rs 10-crore ‘Bhed Bakri Palak Protshan Yojana’ for sheep and goat rearers. “Himachal is the first state to give MSP on milk,” he claimed.
The Chief Minister said that a state cancer institute would be set up at Hamirpur medical college at a cost of Rs 100 crore, besides cancer day care centres at all district hospitals. He announced Rs 1 crore for establishing a scrub typhus research unit and Rs 21 crore for setting up a linear accelerator machine at the Indira Gandhi Medical College (IGMC) and Hospital, Shimla.
Sukhu announced the setting up of a Rs-12 crore centre of excellence in horticulture, two state-of-the-art fruit processing units in sub-tropical areas and the promotion of horticulture tourism. The Budget outlined several schemes for the promotion of fisheries by way of 150 new trout fish production units, two trout hatcheries, carp fish farm and a Rs 5-crore brood bank.
The CM announced the construction of a sky walk bridge in the Hasan valley near Kufri, plans for the development of new tourist destinations of Chandratal, Kaza, Tandi, Rackchham, Nako and Khab and preparing a master plan for the promotion of the Pong Dam.
He said that 205 km long roads, 425 km tarred roads, 27 bridges and cross drainage on 305 km roads would be constructed, besides plastic would be used in the construction of 230 km roads. He added that the work on 123 drinking water supply schemes would be completed in this financial year.
The MLA Local Area Development Fund was marginally increased from Rs 2.10 crore to Rs 2.20 crore and the MLA Discretionary Grant from Rs 13 lakh to Rs 14 lakh.
First state to give MSP on milk
The state, first to give MSP on milk, hiked the MSP of cow milk from Rs 38 to Rs 45 per litre and buffalo milk from Rs 47 to Rs 55 per litre. The liabilities of all milk cooperative societies will be waived and Rs 150 crore will be spent on strengthening infra for milk procurement and its processing.
MLA area Development Fund up
The MLA Local Area Development Fund has been enhanced from Rs 2.10 crore to Rs 2.20 crore. The current MLA priorities limit has been enhanced from Rs 175 crore to Rs 195 crore and the MLA Discretionary Grant from Rs 13 lakh to Rs 14 lakh in each Assembly segment.
High-value crops to get push
Under the Himachal Pradesh Agriculture Mission, high-value crops will be promoted in various areas based on climate. To encourage natural farming, 10 farmers from each panchayat will be encouraged for chemical-free farming, resulting in about 36,000 farmers adopting it.
Rajiv Gandhi Prakritik Kheti Start-up Yojana: The CM announced ‘Rajiv Gandhi Prakritik Kheti Start-up Yojana’ as the third component of Rs 680 crore ‘Rajiv Gandhi Start-up Yojana’ aimed at increasing the income of farmers.
Boost for sports: The cash awards for gold, silver and bronze medals in the Olympics were increased to Rs 5 cr, Rs 3 cr and Rs 2 cr, respectively. For the Asian Games, the awards will be Rs 4 cr for gold, Rs 2.5 cr for silver and Rs 1.5 cr for bronze.
LEADERSPEAK
Will generate additional revenue
The government expects to generate additional revenue due to changes in the excise policy, increase in VAT collection, milk cess and 22% growth in the state excise duty — Sukhvinder Singh Sukhu, Chief Minister
No relief for people
There is no relief for any section. The Congress kept harping about the BJP government taking loan, but this government has broken all records in taking loans. — Jai Ram Thakur, leader of opposition
Will ensure growth, ease of doing biz
We welcome the announcement of the Industrial Promotion Policy-2024. It will ensure the formulation of regulations for the growth of industrial sector and ease of doing business. — Gagan Kapoor, chairman, CII, Himachal chapter
Development-oriented
The Budget is balanced, development-oriented and transparent. All sections of soceity have been taken care of in the Budget and it will prove to be a milestone in strengthening the rural economy and bringing the state’s economy back on track. — Pratibha Singh, HPCC president
Capital expenditure reduced
The capital expenditure of our government in 2022-23 was Rs 6,780 crore. The capital expenditure has been reduced to Rs 6,280 crore for 2024-25. Cutting the Budget for infrastructure development raises questions on the intentions and understanding of the government. — Rajeev Bindal, state BJP president
Areas of emphasis
Education: Focus on building libraries
Budget proposed Rs 9,560 crore
Several new initiatives are being taken in the education sector, ranging from introducing English as a medium of instruction from Class 1, introducing cluster system for sharing of resources between schools, re-evaluation of curriculum to add constitutional values and cultural heritage of the state in the curriculum. Libraries and readings rooms will be created in gram panchayats. As many as 493 libraries will be built in the first phase at a cost of Rs 88 crore. Besides, the total number of teaching days in a year will be increased, having fixed time for sports and cultural activities, and keeping teaching staff away from non-teaching works. Besides, the construction of five Rajiv Gandhi Model Day Boarding Schools will begin in the first phase.
Health: Stress on cancer care
Budget proposed Rs 3,415 crore
The Chief Minister has announced setting up of a state cancer institute at Medical College in Hamirpur with state-of-the-art diagnostic and treatment facilities at a cost of Rs 100 crore. Also, cancer day care centre will be opened in the district hospitals and Adarsh Swasthya Kendras to offer chemotherapy and palliative care to the patients. Besides, chemotherapy medicines will be included in the essential medicines list so that patients do not have to spend more money on chemotherapy. A Hospital Management Information System will be established in 53 health institutions and some reforms will be made in HIMCARE and the Sahara Yojana to make them more effective.
Horticulture: Promoting high-return fruits
Budget proposed Rs 531 crore
A Centre of Excellence in Horticulture will be established at a cost of Rs 12 crore, which will act as ‘One Stop Resource Centre’ for all needs related to quality, skill, tourism and marketing regarding horticulture. Two state-of-the-art fruit processing units will be established in the sub-tropical areas of the state and 75 minor irrigation schemes will be constructed. Necessary guidelines will be prepared in collaboration with the UHF, Nauni, to promote the production of high-return fruits like dragon fruit, avocado, blue berry, nuts, etc. Besides, a policy will be made to promote horticulture tourism. As per the demand of the apple growers, universal cartons will be introduced from this season for the packaging of the fruit.
