- FY23 budget focuses more on the poor and social security.
- No new tax has been proposed in the Budget.
State Growth:
An 8.3% growth rate for HP is forecasted in FY22 after contracting in 2020-21 and registering a negative growth of 6.2%.
- In real terms, the increase in Gross State Domestic Product (GSDP) pre-COVID-19 and post-COVID-19 (2019-20 to 2021-22) is 2.7%.
- The per capita income at current prices is estimated at Rs 2,01,854, which is more than the estimated national per capita income for 2020-21 by Rs 51,528. The growth in per capita income during 2021-22 is estimated at 10.1%.
Increase in MLALAD fund to Rs 2cr:
i.An increase in the Member of Legislative Assembly Local Area Development (MLALAD) fund from the existing Rs 1.80 crore to Rs 2 crore is proposed in the budget. This has been increased by Rs 20 lakh.
- Notably, a total increase of Rs 90 lakh had been made in the MLALAD fund during Jai Ram Thakur’s government.
ii.An increase is also proposed in the discretionary grant for MLAs (Members of Legislative Assembly) from Rs 10 lakh to Rs 12 lakh for FY23.
Increase in Old Age and Women Pensions:
Rs 1,300 crore are budgeted for providing social security pension to 7.50 lakh eligible persons.
i.Monthly old-age pension amount increased from Rs 1,001 to Rs 1,500.
- For availing such pensions, the age limit also decreased from 70 years to 60 years.
ii.For individuals between 60 years and 79 years, the pension is increased from Rs 850 to Rs 1,100; and for above 70 years and disabled, it is hiked from Rs 1,000 to Rs 1,700.
iii.There is also a hike in pension for destitute women from Rs 1,000 to Rs 1,150;
Other Key Proposals:
i.The debt burden on the state rose to Rs 63,200 crore from Rs 55,737 crore in 2021. In this regard, HP government will use over Rs 10,786 crore on loan repayment and interest payment out of the total Rs 51,365-crore Budget in 2022-23.
- Rs 11 would be spent on loan repayment and Rs 10 on interest payment out of every hundred rupees to be spent by the state government in 2022-23.
ii.Out of every 100 rupees expenditure, Rs 26 will be spent on salaries, Rs 15 on pension, Rs 10 on interest payment, Rs 11 on loan repayment, Rs 9 for grants for autonomous bodies; while the remaining Rs 29 will be spent on other activities, including capital works.
iii.In 2021-22, taxes saw an increase of Rs 2,234 crore from Rs 49,131 crore.
iv.Cow cess on liquor will be increased by Rs 1 per bottle.
v.There is also a hike in the grant given for widow remarriage from Rs 50,000 to Rs 75,000.
vi.Rs 5 crore will be spent for creating livelihood for urban youth.
- A Bill will be tabled in the Assembly for fixing eligibility criterion for the same.
vii.On the health sector, there will be creation of 500 new posts for doctors in the state.
- The Himcare Card for availing free health services for various ailments now will be required to be renewed after three years instead of every year.
- Medical device park will be created.
viii.Honorarium for Mayor, Deputy Mayor and councillors in municipal corporations has been increased from Rs 12,000 to Rs 15,000, from Rs 8,500 to Rs 10,000 and from Rs 5,050 to Rs 6,050 per month, respectively,
ix.Rs 8,412 crore has been allocated for education.
- Sardar Patel University in the Mandi district would start functioning from April 2022.
- Four flying schools will be set up for imparting training to fly drones in HP.
- 1000 new Anganwadi Bhawans will be constructed in the state.
x.Also, the current government got approval of 826 plans from NABARD (National Bank for Agriculture and Rural Development) worth Rs 3,452 crore.
xi.Minimum daily wage will be increased to Rs 350. The wages of outsourced employees will increase by a minimum of Rs 4200 per month.
Recent Related News:
i.Prime Minister (PM) Narendra Modi presided over the 2nd groundbreaking ceremony of the Himachal Pradesh Global Investors’ Meet in Mandi, Himachal Pradesh(HP). He also inaugurated and laid the foundation stone of the hydropower projects worth ~Rs 11000 crore in Mandi, HP.
ii.The world’s highest Electric Vehicle (EV) charging station was inaugurated at 500 feet in Kaza, in the Spiti Valley, Lahaul and Spiti district, Himachal Pradesh (HP). The charging station will support all EV Scooters and cars.
About Himachal Pradesh (HP):
Governor– Rajendra Vishwanath Arlekar
Wildlife Sanctuary– Kanwar Wildlife Sanctuary; Khokhan Wildlife Sanctuary
Airports– Kullu Manali Airport; Shimla Airport; Kangra Airport
