Budget 2025-26: Little to ease financial woes of investors
Facing stiff financial scenario, the annual Budget announced by Chief Minister Sukhwinder Singh Sukhu did little to ease the financial woes of the investors who were banking on abolition of state specific levies, an infrastructure push and reduction of power tariff across various sectors.
While the investors have welcomed grant of subsidy of 40 paise per unit on industries operating on 66kv or higher, it would barely benefit the power intensive units (PIUs) like cement, iron and steel units. “The power tariff has surpassed the neighbouring states of Punjab and Haryana after the government withdrew a subsidy of Re 1 in September last year. It is a welcome step to provide a partial relief to the PIUs by announcing a subsidy of 40 paise per unit but the micro small and medium sector enterprises, which constitute more than 85 per cent of the industries, will continue to suffer,” said Rajiv Aggarwal, president, Baddi Barotiwala Nalagarh Industries Association.
Being the biggest conglomerate of more than 600 industries, the association had demanded abolition of state-specific levies like additional goods tax and certain goods carried by road tax which defeat the one nation one tax norm and make the state’s industry uncompetitive.
Dismayed by the lack of relief a section of industry captains refused further comment on the Budget. No Budget has been announced for completing the upcoming medical device park at Nalagarh as well as the bulk drugs park coming up in Una. Contrary to the earlier announcement of returning the central grant, the state government will use Rs 234 crore central funds for the bulk drugs park as per today’s announcement.
Notably, the Centre has granted extension to the Bulk Drug Park till March 2026 while work to construct the medical device park has been stalled owing to lack of funds.
Sanjay Sharma, general secretary, Himachal Drug Manufacturers Association, said the setting up of a board for industries will only help if the government implements the key suggestions extended by the industry in a time-bound manner failing which it would be reduced to a mere formality.
The Confederation of Indian Industry (CII) has termed the Budget as holistic and forward-looking focusing on self-reliance, sprucing economic resilience, industrial growth and sustainability. The Budget is aimed at fostering growth in the rural sector and prioritises sustainability and rural economic growth, emphasising renewable energy and resource efficiency. Accelerated solar power projects ensure a reliable energy supply, while mandatory rainwater harvesting enhances conservation. The HP-SHIVA scheme, with solar fencing across 83 clusters, safeguards agriculture and strengthens agro-based industries.
“The 40-paisa electricity subsidy per unit for 66 KV and above will definitely help the power intensive units curtail their high energy cost. However, we still urge state government to extend this benefit to all categories such as 33 KV and 11 KV etc. ensuring a level playing field for all,” said Deepan Garg, Chairman, CII Himachal Pradesh. The state government should leverage the advantage of power surplus state to attract investment, Garg further added.
“The focus on sustainability and rural-industry linkages is a game-changer for Himachal Pradesh. By integrating green energy and resource efficiency into the industrial framework, the state is setting new benchmarks for long-term economic resilience,” stated Sanjay Suri, Vice Chairman, CII Himachal Pradesh.
Focus on school rationalisation
As a student, my biggest concern is my education and job opportunities. This Budget seems to focus on rationalising schools and improving infrastructure, but I worry about the closure of many schools due to low enrollment. While it’s good to see investment in Rajiv Gandhi day boarding schools and digital attendance, I hope these changes genuinely improve learning instead of just cutting costs.
Vashisht Sharma, student, Shimla
Digital attendance plan commendable
The state government’s decision to implement digital attendance in schools as part of the Budget is highly commendable. The decision to hike the rates of cow and buffalo milk is also praiseworthy, as it will improve the financial stability of women. Furthermore, providing Rs 2,100 to every girl, who turns 21, is admirable, as it will help her cover her educational expenses effectively.
Sunita Thakur, homemaker, Manali
Nothing for apple growers
The government has prioritised organic farming, which is commendable. The hike in the rates of milk, corn and the MSP for wheat are also appreciable. However, the Budget does not have anything special for the Rs 5,000 crore apple economy. Orchardists were expecting something big . However, nothing noteworthy announcement was made for them in the Budget.
Harish Chauhan, orchardist, Rohru
Promotion of organic farming commendable
To promote organic farming is a commendable step. I was concerned about the Himcare scheme as it found no mention in the Budget. Many people are facing problems in availing of the benefits of the scheme. I am concerned about the one-time settlement scheme for farmers as it will encourage them to not pay their loans and those who are paying loan may get a wrong message.
Jawahar Kaul, retired banker, Shimla
Job promise a pleasant gift
The Congress government has promised in the Budget to provide around 25,000 jobs to the youth, similar to a promise given before the last Assembly elections. The youth have been struggling for the past three years and if the government fulfils the promise of providing 25,000 jobs, the Budget will be a gift for them.
Shubham Sharma, Research scholar, CUHP
Power board staff disappointed
The employees of HPSEBL were expecting that the state government may announce the implementation of the old pension scheme (OPS) for them but no such announcement was made. Besides, the employees were also expecting the government to address the issue of outstanding arrears but there was no mention of it. The Budget was not on the expected lines for the employees in general.
H l Verma, HPSEBL employee, Shimla
