Himachal's Fiscal Deficit Expected to be 4.74% of State's GDP in FY26

The fiscal deficit of Himachal Pradesh during the 2025-26 financial year is estimated at 4.74 per cent of the Gross State Domestic Product (GSDP), according to the Fiscal Responsibility and Budget Management (FRBM) report presented in the state assembly on Friday.

The fiscal deficit for the current financial year is likely to be at Rs 12,114 crore against the budget estimates of Rs 10,337.97 crore, which was Rs 1,776 crore more, the report said.

The widening deficit has been attributed to the pressure of natural calamities, committed liabilities and reduction in Goods and Services Tax (GST) rates.

Experts have suggested that measures should be taken to enhance non-tax revenue, and the government should make efforts to get maximum from centrally sponsored schemes and externally aided projects to improve the economy.

As per the FRBM report, the expenditure on salary and pension would be Rs 13,837.36 crore and Rs 10,820 crore, respectively, while the expenditures on subsidies and interest would be Rs 1,088 crore and Rs 6,738.35 crore more than estimated.

Further, there would be a deficit of Rs 1,726 crore in revenue receipts as the actual receipts are estimated at Rs 14,374 crore against budget estimates of Rs 16,101.10 crore.