Fearing shortfall of revenue, Himachal govt begins consultations

With a shortfall being expected in this year’s budget size of over Rs 58,000 crore, the Himachal government has started pre-budget consultations apprehending a shortfall in the revenues from various sectors on account of unforeseen circumstances.

The Finance Department today held consultations with 12 departments to assess the actual shortfall and look for areas to generate the much needed expenditure. With a reduction in capital expenditure and the revenue deficit grant (RDG) set to taper in the next academic year, the size of next year’s budget could remain the same and could also decrease, contrary to the normal trend.

Chief Minister Sukhvinder Singh Sukhu is likely to hold talks with the officials of some of the key departments on the budget projections for the next financial year 2025-26.

Principal Secretary Devesh Kumar held talks with officials from the Transport, Urban Development, Jal Shakti, Tourism, Town and Country Planning, Home, Excise and Taxation and many other departments. The budgetary requirements of these departments has been taken note of and accordingly steps will be taken.

Sources said the Finance department will prepare a draft of next year’s budget proposals which will be discussed during the meetings on MLA Priority schemes to be held with the legislators in January 2025. By then, the state’s Annual Plan will also be given shape.

There has been a shortfall of almost Rs 4,000 crore in this year’s budget collections due to various factors, which the CM has himself ad mitted to. With there being no decrease in the committed liabilities of the government, including salaries and pensions of serving and retired government employees, the road ahead for the state government appears difficult.