Himachal Pradesh government focuses on sustainable growth initiatives

The Himachal Pradesh government is trying to balance economic growth with strict budget controls. The latest budget focuses on tourism, green energy, rural development, and social welfare. However, there are worries about decreasing capital spending and increasing debt. Chief Minister Sukhvinder Singh Sukhu presented the budget, highlighting the tough financial situation due to reduced central government grants and high debt levels. Economists suggest that the state should improve tax collection, adjust subsidies, and sell state assets to boost revenue. They also recommend promoting eco-tourism and leveraging natural resources to raise funds. On the spending side, the government needs to cut costs and prioritize important investments. Reforming pensions and restructuring public sector operations could help stabilize finances. The state is also looking to negotiate better deals for central grants and seek special financial aid. There is a significant decline in capital expenditure, dropping by 46.58%, which limits long-term development. A large part of the loans taken is being used to pay off earlier debts, complicating future investments. Despite these challenges, the budget includes plans to enhance tourism and public safety, like introducing electric buses and expanding the Shimla Ropeway. Moreover, the government aims to clear backlog payments for pensions and reform the education department to improve efficiency. While there are initiatives for social welfare focusing on women and children, the fiscal challenges persist with a large debt now at ₹ 1,04,729 crore. Overall, the Himachal Pradesh government is exploring innovative strategies to manage its financial challenges while aiming for sustainable growth.