On March 6, 2020, Himachal Pradesh (HP) Chief minister(CM) Jai Ram Thakur has presented Rs.49,131 crore budget for the financial year (FY) 2020-21 in state assembly in Shimla. This is the 3rd budget being presented by Thakur & for the first time, a paperless budget was presented as he read from a laptop.The state has a debt burden of Rs 55,737 crore.Here are highlights from the budget speech:
The Key Focus of the budget is road and air connectivity, housing for poor and scheduled castes and quality education.
i.The state’s revenue receipts are estimated to be Rs 38,439 crore in the year 2020-21 while the total revenue expenditure is estimated at Rs 39,123 crore.
ii.The revenue deficit grant of about Rs 19,308 crore received from the Center on the recommendations of the 15th Finance Commission has helped in making this budget for the next financial year.
- The state Government will celebrate 2020-21 as golden jubilee year of statehood as it attained statehood in 1971.
- A provision of Rs 3,986 crore for PWD ( Public Works Department)
- An outlay of Rs 44 crore has been allocated to install crash barriers and improve condition of roads & Modern Transport Nagar also proposed in Hamirpur.
- A provision of Rs 150 crore for ‘nayi rahein nayi manzilen’ scheme, which aims to beautify untapped areas of the state in terms of tourism.
- Rs 480 crore subsidy for domestic power consumers & Rs 158-crore scheme to deal with low voltage issues.
- For the welfare of startups in the state, ‘Him startup Yojana’ to be launched with the venture capital fund of Rs 10 crore.
- Rs 2,213 crore for irrigation and public health department & State’s TB (tuberculosis) patients will get Rs 1,500 crore as monthly financial assistance.
- Allocation of Rs 8,016 crore for education sector ,Rs 15 crore to increase forest cover, Rs 50 crore for anti-hail net structures, Rs 25 crore for natural farming has been made.
- 101 new trout units to be established in Himachal to boost trout production.
- State government will use approximately Rs 5,109 crore on loan interest payment out of the total Rs 49,131 crore budget in 2020-21.
- The fiscal deficit is estimated at Rs 7,272 crore for 2020-21, which is 4 per cent of GSDP. The net borrowing will be 3 per cent of GSDP.
- Rs 14.79 will be spent on pension, Rs 10.4 on interest payment, Rs 7.29 on loan repayment and Rs 41.22 will be on development works and other activities
- The pension of 1.25 lakh widows and disabled has been increased to Rs 1,000 from Rs 850 per month. Besides, social security pension will be provided to 50,000 more eligible persons.
- Per capita income in Himachal Pradesh is Rs 60,205 higher than that of the country.
- Rs 1,013 crore earmarked for expanding air connectivity, the amount is the highest ever in any budget of the state.
About Himachal Pradesh:
Capital– Shimla (summer capital), Dharamshala (winter capital).
Governor– Bandaru Dattatreya
National Parks– Great Himalyan NP, Pin Valley NP, Inderkilla NP, Khirganga NP, Simbalbara NP.