Himachal CM Sukhvinder Sukhu announces Rs 58,444 crore Budget; 4 per cent DA installment for employees to be released on April 1

Tribune News Service

Pratibha Chauhan

Shimla, February 17

Chief Minister Sukhvinder Singh Sukhu on Saturday announced a budget of Rs 58,444 crore for financial year 2024-25. The fiscal deficit is Rs 10,784 crore which is 4.75 per cent of State Domestic Product.

Sukhu said that out of every Rs 100, only Rs 28 will be devoted for development works as Rs 25 will be spend on salaries, Rs 17 on pensions, Rs 11 on interest payment, Rs 9 on loan payment and Rs 10 on grants to autonomous institutions. 

CM announced that 4 per cent Dearness Allowance installment for employees will be released from April 1, 2024 which will put a financial burden of Rs 580 crore. Daily wages have been enhanced from Rs 375 to Rs 400, outsource employees will get minimum wages of Rs 12,000.

The MLA Local Area Development Fund has been enhanced from Rs 2.10 crore to Rs 2.20 crore.  The current MLA priorities limit has been enhanced from Rs 175 crore to Rs 195 crore and MLA Discretionary Grant has been enhanced from Rs 13 to 14 lakh in each assembly segment.

Sukhu, who holds the Finance portfolio, presented the second budget amidst serious financial constraints faced by the government. CM started his speech by paying tribute to those who had lost their lives during the havoc wreaked by the last monsoons.

 “My government has fulfilled the demand for restoration of old pension scheme and 1.15 lakh employees had opted for it,” he said.  He said 2. 37 lakh eligible women were being given Rs 1500 monthly financial assistance.

 He said in the last one year the government as part of Vyavastha Parivartan had taken a number of initiatives which will continue.  Sukhu said notwithstanding the financial crunch and effort had been made to keep the wheels of development moving.  A Rs 680 crore start up scheme had been launched to provide employment to youth.

He said there will be extensive use of Artificial Intelligence in various spheres and latest technology will be adopted.

 He said various agencies like World Bank and Niti Aayog had lauded the commendable work done by the state government during the devastation caused during last monsoons.

 “Despite the Centre not proving any special relief package to Himachal in wake of large scale damage to infrastructure, the state government from its own resources provided relief to the affected families,” he said. He said a major hike had been made in the relief for reconstruction of damaged houses.

Sukhu said Himachal has provided the most liberal financial package during a disaster in the country. The priority of my government was to reach out to the poorest of poor and the underprivileged.

 He said more than 88,091 mutation cases had been settled, providing relief to people.  He said forest clearances in long pending projects had been sought.

 CM said a mountain township was being set at Jathia Devi near the Jubbarhatti airport to decongest Shimla.  He said several initiatives had been taken to achieve the target of making Himachal a Green State by March 2026.He announced that Himachal would be developed as a self reliant, investor friendly, mining free and drug free state. “We will promote the rural economy to make HP a self reliant state,” he said. Sukhu said Himachal will be made self reliant by 2032. 

 He said it was due to the financial mismanagement by the previous BJP that the total debt on the state today was Rs 87,788 crore. He said in 2018 when BJP came to power, the liabilities on the government was Rs 46,906 crore which had now risen to Rs 76,651 crore in 2022.

Sukhu said a sum of Rs 22,406 crore was due to Himachal from the Centre which included Rs 9906 crore proposal as damages due to rains, Rs 4500 crore due from BBMB as power arrears and Rs 8000 crore which was lying with the Centre as the employees contribution under new pension scheme.

He said incentives will be given to farmers to encourage organic farming and a minimum support price of Rs 40 and Rs 30 per kg for wheat and rice will be given respectively. He said Rs 10 crore will be provided as subsidy for putting up barbed wire as protection against wild animals.  “ We will prepare an action plan to encourage cultivation of various millets and cultivation of vegetables will be encouraged under JICA,” he said. He added that new marketing yards will be set up at various locations in Shimla, Kullu and Sirmaur.

CM announced a hike in rate of cow milk from Rs 38 to Rs 45 and buffalo milk from Rs 38 to 55. He said Rs 150 crore will be spent in 2024-25 on strengthening infrastructure for milk procurement and its processing. He said liabilities of all Milk cooperative societies will be waived off.  He said unde Him Ganga Yojna, a fully automated milk plant will be set up at Dagwar in Kangra with a capacity of three lakh lts.

He announced a Rs 10 crore Bhed Bakri Protsahan Yojna scheme. He announced an allocation of Rs 582 crore for the Agriculture sector and Rs 300 crore for the Horticulture sector.

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