Himachal assembly passes Rs 43,842 cr budget for FY19

Himachal Pradesh assembly today passed the budget for 2018-19 and also the related appropriation bill, authorising the state government to spend Rs 43,8,42 crore from consolidated fund.

The House discussed and voted the demands for grant in respect of health and family welfare, irrigation and public health, public works and education; while remaining demands were passed without discussion.

The budget was presented by Chief Minister Jai Ram Thakur, who also holds the financial portfolio, on March 9.

No fresh tax was proposed in the budget, leaving uncovered deficit of Rs 7,061 crore. The cumulative fiscal deficit has been pegged at Rs 7,821 crore.

The liability of interest payment during 2018-19 would be Rs 4,260 crore compared to Rs 3,718 crore during the current financial year.Borrowings of Rs 4,500 crore would be required to bridge the revenue gap.

The maximum expenditure of Rs 11,263 crore would be incurred on salaries, Rs 5,893 crore on pensions, Rs 4,260 crore on interest payment and Rs 3,632 crore on loan repayment and Rs 2,741 crore on maintenance, leaving Rs 16,392 crore (39.56 per cent) for development and implementation of other schemes.

Out of every Rs 100, the state revenue receipts would be Rs 27.13. Share in non-tax revenue would be Rs 21, while Rs 45.34 would come in form of central grants and gap of Rs 26.54 would be covered through loans.