Himachal: ₹40,461-crore supplementary budget cleared for Himchal’s current fiscal
Leader of Opposition says it accounts for 70% of the state’s total budget, shows ‘economic failure’ of state, also accuses the government of bypassing established legislative procedures
The Himachal Pradesh government on Thursday passed a supplementary budget for the financial year 2025–26, amounting to ₹40,461.95 crore, with a focus on debt servicing, power sector support and healthcare infrastructure. Passed through voice vote, the supplementary budget includes ₹36,374.61 crore earmarked for state schemes and ₹4,087.34 crore for centrally sponsored schemes.

A major portion — ₹26,194.95 crore — has been proposed for repayment of Ways and Means Advances and overdrafts. The energy sector has been allocated ₹4,150.14 crore for power subsidies, conversion of loans provided to the Himachal Pradesh State Electricity Board Limited (HPSEBL) under the UDAY scheme into equity, and repair of damaged transformers.
In the health sector, ₹657.22 crore is for HIMCARE and SAHARA. The government also plans to introduce robotic surgery facilities at medical colleges in Shimla, Tanda, Hamirpur, Nerchowk, and AIMSS Chamyana, along with procuring PET scan machines for Hamirpur and Tanda. Additionally, ₹818.20 crore is for natural disaster relief and ₹785.22 crore for water supply and sewerage schemes. Similarly, ₹555.89 crore has been earmarked for urban projects — including a shopping complex in Shimla, a flyover at Khalini, and an underground utility duct from Chotta Shimla to Willy’s Park — and ₹453.63 crore for maintenance and construction of roads and bridges.
Under centrally sponsored schemes, ₹2,453.97 crore has been proposed for disaster management through the National Disaster Response Fund (NDRF). Other allocations include ₹688.40 crore for the Pradhan Mantri Gramin Sadak Yojana (PMGSY), ₹352.18 crore for compensation to Renukaji Dam oustees, ₹82.45 crore for Pradhan Mantri Awas Yojana (Gramin), and ₹68.30 crore for MGNREGA.
The supplementary demands also include provisions for social welfare measures such as honorariums for Anganwadi workers and the Mukhya Mantri Sukh Aashray Yojana.
Speaking to media on the assembly premises, chief minister Sukhvinder Singh Sukhu said, “The government is prioritising capital investment to drive long-term transformation and development in the state. All projects are being started with 30% advance provisions.” He noted that the overall budget size has been increased in line with this objective.
At the same time, the CM also flagged concerns over a sharp reduction in the revenue deficit grant (RDG), stating that the state is likely to incur an annual loss of over ₹10,000 crore due to the cut.
State government exposed: Jai Ram
Flaying the state government, leader of opposition Jai Ram Thakur said, “The supplementary budget exposed the Sukhu government’s financial management, discipline and foresight. The fact that the supplementary budget accounts for 70% of the state’s total budget serves as a certificate of the government’s economic failure.”
He also accused the government of bypassing established legislative procedures, saying, “The supplementary budget has been passed in haste without providing the relevant documents to the members of the House. This is against the democratic process.”
Flagging concerns over declining capital expenditure, the former CM said, “There has been a significant drop in the capital expenditure in the state. Spending on development works has fallen to less than 4%.”

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