HP Budget 2025-26
Complete Data Compilation (Actuals)
1. Budget Profile
₹58,514.31 Cr
Total Budget Outlay
₹2,55,636 Cr
Proj. GSDP (10% Growth)
| Total Receipts | 56,945.34 |
| Revenue Receipts | 42,342.97 |
| Capital Receipts | 13,102.37 |
| Revenue Expenditure | 48,733.04 |
| Opening Deficit Balance | (-) 5,883.00 |
2. Revenue Breakdown
Tax & Central
A. State Own Tax Revenue
| Tax Head | Amount (₹ Cr) | % Share | Growth |
|---|---|---|---|
| State GST | 6,761.25 | 42.0% | +13% |
| State Excise Duty | 3,250.00 | 20.2% | +12% |
| Sales Tax/VAT | 2,212.00 | 13.7% | +12% |
| Land Revenue | 1,018.95 | 6.3% | +5904% |
| Taxes on Vehicles | 978.05 | 6.1% | +11% |
| Electricity Duty | 688.29 | 4.3% | +25% |
| Stamps & Reg. | 638.08 | 4.0% | -4% |
| Other Taxes | 480.12 | 3.0% | -66% |
| TOTAL TAX REV | 16,101.10 | 100% | +19% |
B. Central Transfers
| Share in Central Taxes | 11,806.30 | +11% |
| Central Grants (CSS/Other) | 6,986.00 | -33% |
| Revenue Deficit Grant | 3,257.00 | -48% |
| TOTAL TRANSFERS | 22,049.30 | -15% |
C. Non-Tax Revenue (Approx Breakdown)
| Economic Services | ~2,400 | ~57% |
| Interest & Dividends | ~900 | ~21% |
| General Services | ~600 | ~14% |
| Social Services | ~300 | ~8% |
| TOTAL (Approx) | ~4,200 | 100% |
3. Capital Receipts
| Gross Borrowings | 13,074.74 |
| Loan Recoveries | 27.63 |
| Misc Capital Receipts | 0.00 |
| TOTAL CAP RECEIPTS | 13,102.37 |
4. Expenditure
Total: ₹58,514.31
A. Committed Expenditure (78% of Rev Receipts)
| Item | Amount (₹ Cr) | % of RR |
|---|---|---|
| Salaries | 14,716.65 | 34.8% |
| Pensions | 11,577.43 | 27.3% |
| Interest Payments | 6,738.85 | 15.9% |
| SUBTOTAL COMMITTED | 33,032.93 | 78.0% |
B. Other Revenue Expenditure
| Grants-in-aid (Non-salary) | 2,885.37 |
| Maintenance | 2,519.02 |
| Social Security Pensions | 1,659.62 |
| Grants-in-aid (Auto. Salary) | 1,626.33 |
| Subsidies | 1,562.00 |
| Grants-in-aid (Cap Assets) | 849.84 |
| Wages | 292.50 |
| Loans given by State | 305.43 |
| TOTAL REVENUE EXP | 48,733.04 |
C. Capital Expenditure
| Debt Repayment (Principal) | 5,805.74 | -63% |
| Capital Outlay (Assets) | 3,941.13 | -55% |
| Loans & Advances by State | 34.40 | -81% |
| TOTAL CAPITAL EXP | 9,781.27 | -33% |
5. Deficits & Debt
| Metric | 2023-24 | 24-25 RE | 25-26 BE |
|---|---|---|---|
| Revenue Deficit | 5,559 | 6,486 | 6,390 |
| As % of GSDP | 2.6% | 2.8% | 2.5% |
| Fiscal Deficit | 11,266 | 15,409 | 10,338 |
| As % of GSDP | 5.3% | 6.6% | 4.0% |
| Primary Deficit | 5,617 | 9,144 | 3,599 |
| Debt Stock (% GSDP) | 40.5% | 40.8% | 40.5% |
6. Analysis
A. HP vs National Average (Exp %)
| Sector | HP | India | Status |
|---|---|---|---|
| Education | 18.9% | 15.0% | Above |
| Health | 6.3% | 6.2% | Equal |
| Rural Dev. | 4.0% | 5.1% | Below |
| Roads/Bridges | 6.1% | 4.3% | Above |
| Water/Sanitation | 3.3% | 2.5% | Above |
| Energy | 1.6% | 5.0% | Below |
B. FRBM Compliance
| Rev Deficit Target | 2.5% (On Track) |
| Fiscal Deficit Target | 4.0% (Improving) |
Revenue Expenditure Breakdown
Total: ₹48,733.04 Cr (2025-26)
1. Committed Expenditure
₹33,032.93 Cr
78% of Revenue Receipts. These are legally/contractually obligated. Non-discretionary.
A. Salaries
₹14,716.65 Cr
Includes: Pay, DA (₹1,200 Cr), HRA, TA/DA, Medical.
Top Salary Departments:
Education (65k staff) ₹5,200 Cr (35%)
Police (25k staff) ₹1,800 Cr (12%)
Health ₹1,500 Cr (10%)
PWD ₹1,200 Cr (8%)
⚠ Key Issue: Growth
Salary bill grows 8-10% annually due to DA revisions, Pay Commissions, and recruitment.
B. Pensions
₹11,577.43 Cr
Includes: OPS, Family Pension, Gratuity. (~1.8 Lakh retirees)
⚠ Critical Comparison
HP spends ₹11,577 Cr on Pensions vs only ₹6,258 Cr on Capital Outlay (Infrastructure).
Pensions consume 1.8x more than Infrastructure!
Pensions consume 1.8x more than Infrastructure!
C. Interest Payments
₹6,738.85 Cr
Includes: Central Loans (₹3.5k Cr), Market Borrowing (₹2.2k Cr).
⚠ The Debt Trap
HP pays ₹18.5 Crore PER DAY in interest.
This amount is more than the entire Education Development Budget.
This amount is more than the entire Education Development Budget.
2. Other Rev Exp
₹11,395.68 Cr
Discretionary Spending (Development, Maintenance, Welfare)
1. Grants-in-Aid (Non-Salary)
₹2,885.37 Cr
To Zila Parishads/Panchayats (₹1,200 Cr), Universities (₹600 Cr).
2. Maintenance
₹2,519.02 Cr
Roads (₹1,200 Cr), Buildings (₹600 Cr).
*Severe Issue: Roads need ₹2,000 Cr but get only ₹1,200 Cr.
3. Social Security Pensions
₹1,659.62 Cr
Old Age, Widow, Disability (~15 Lakh beneficiaries).
*Distinct from Employee Pensions.
4. Grants for PSU Salaries
₹1,626.33 Cr
For loss-making bodies: Electricity Board (₹800 Cr), HRTC (₹400 Cr).
5. Subsidies
₹1,562.00 Cr
Power (₹800 Cr), Fertilizer (₹300 Cr), Food (₹250 Cr).
3. Loans Given by State
₹305.43 Cr
To PSUs (₹200 Cr), Local Bodies (₹50 Cr), Employees (₹25 Cr).
*Accounting Note: Counted as Revenue Exp, not Capital.
*Accounting Note: Counted as Revenue Exp, not Capital.
The Story of ₹100
HP Budget 2025-26
Rupee Comes From
(Receipts)
1. Central Transfers
Tax Share (21p) + Grants (18p)
39 P
2. State’s Own Tax
GST, Excise, VAT, etc.
28 P
3. Borrowings (Debt)
Loans taken by Govt
23 P
4. Non-Tax Revenue
Hydro, Forestry, User Charges
7 P
5. Loan Recovery
Misc receipts
3 P
Total: 100 Paise
Rupee Goes To
(Expenditure)
1. Salaries
Govt Employees
25 P
2. Pensions
Retired Employees
20 P
3. Interest Payment
On old loans
12 P
4. Loan Repayment
Principal amount returned
10 P
5. Development/Maint.
Roads, Schemes, Subsidies
26 P
6. Capital Assets
New Infrastructure
7 P
Total: 100 Paise
Interview Insight:
Notice that 57 Paise (Salaries 25 + Pensions 20 + Interest 12) is gone before the government does any work. This is the “Committed Expenditure” trap.