Milk MSP, edu budget hike shine light on Himachal CM’s priorities

KS Tomar

I T is not a common trait of the Central and state Budgets to give priority to rural-oriented economy, but Chief Minister Sukhvinder Singh Sukhu has done it, which is evident from his decision to incorporate a special ingredient of providing minimum support price (MSP) for milk producers in the Budget, first in India, which may be aimed at deriving political mileage during the upcoming polls.

CM is optimistic

• The state government will purchase wheat and maize, grown through the utilisation of natural farming techniques, to directly benefit farmers.
• The CM is optimistic about the improvement of the economic status in coming years, which will take the state towards the goal of attaining self-reliance
• The CM has given priority to education as allocation has gone up from Rs 8,828 crore (2023-24) to Rs 9,560 crore (8.68 per cent increase) and the health sector will have an annual budget of Rs 3,415 crore (2024-25) as against Rs 3,116 crore in the previous year (9.91 per cent higher)

Takeaways from Budget

Economists say that the Budget’s biggest takeaway pertains to the CM’s commitment to uplift the economic condition of the farmers which could be an overriding reason for the announcement of the MSP for cow and buffalo milk at enhanced rates. The state government will also purchase wheat and maize, grown through the utilisation of natural farming techniques, to directly benefit farmers. A decision to waive the liabilities of the debt-ridden cooperative societies may prove as a boon which will form the backbone of the new movement, an allocation of Rs 150 crore to strengthen milk procurement and processing infrastructure will also benefit the stakeholders.

Resource mobilisation

Interestingly, the previous Jai Ram-led government had adopted a unique system of getting away with the established pattern of auction of liquor shops for four years which had caused losses amounting to hundreds of crores. Sukhu accuses the previous government of helping the ‘liquor mafia’ but he has restored the auction system and it helped in the mobilisation of resources to the tune of Rs 400 crore, which will be spent on the social welfare schemes announced in the Budget. Similarly, hike in the VAT and cess on diesel as well as petrol will generate hundreds of crores to finance various policies.

Downward trend in

capital expenditures

The downward trend of capital expenditures must be worrisome for the state government and there is urgency of tackling this problem on a priority basis because it adversely affects the developmental works. As against Rs 9,035 crore in 2023-24, the capital expenditures has been pegged at Rs 8,313 crore which is a shortfall of 7.99 per cent. The revenue expenditures will also overtake the revenue receipts which will be to the tune of 3.58 per cent and 1.10 per cent respectively. The CM seems to be unfazed as he is optimistic about the improvement of the economic status in coming years, which will take the state towards the goal of attainment of self-reliance.

Some sectors require

more allocations

The CM has rightly given priority to education as allocation has gone up from Rs 8,828 crore (2023-24) to Rs 9,560 crore (8.68 per cent increase) and the health sector will have an annual budget of Rs 3,415 crore (2024-25) as against Rs 3,116 crore in the previous year (9.91 per cent higher). But the Public Works Department could have got elevated priority as roads, bridges etc. are the lifeline of development, especially when it got an enhancement of only 0.14 per cent in the Budget.

Analysts opine that despite the adverse fallout of the unprecedented catastrophe and apathy of the Centre, the CM has tried to deliver in all priority areas.

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#Agriculture #Minimum Support Price MSP #Sukhvinder Singh Sukhu