Write a short note on HP Budget & Annual Plan for 2018-19

The Gross State Domestic Product of Himachal Pradesh for 2018-19 (at current prices) is estimated to be
Rs 1,52,229 crore. This is 12% higher than the revised estimates for 2017-18.
▪ Total Budget expenditure for 2018-19 is estimated to be Rs 41,440 crore, a 6.3% increase over the
revised estimate of 2017-18. The estimated expenditure on salaries is Rs 11,263 crore and pensions Rs
5,893 crore. Expenditure on both these heads constitutes 41% of the revenue expenditure. In 2017-18,
the revised estimates indicate that the expenditure is expected to be Rs 38,995 crore (9%) higher than the
budget estimate.
▪ Total receipts (excluding borrowings) for 2018-19 are estimated to be Rs 31,660 crore, an increase of
8.1% as compared to the revised estimates of 2017-18. In 2017-18, total receipts exceeded the budgeted
estimate by Rs 343 crore. The expected Receipts in capital Account of the Government are Rs. 6,540 crore
apart from Rs. 1,225 crore in Public Account including Provident Fund, etc. Capital Expenditure including
Loan Repayments is estimated to be Rs. 7,872 crore.
The total Revenue Receipts are estimated at Rs. 30,400 crore and the total Revenue Expenditure is
estimated to be Rs. 33,568 crore with a Revenue Deficit of Rs. 3,168 crore.
▪ As per the Revised Estimates for 2017-18, the Revenue Deficit will be 1.93 percent and Fiscal Deficit will
be 5.46 percent of GSDP. Revenue deficit for 2018-19 is targeted at Rs 3,168 crore, or 2.1% of the Gross
State Domestic Product (GSDP). Fiscal deficit is targeted at Rs 7,855 crore (5.2% of GSDP).
▪ Departments of Rural Development, Tribal Development, and Health, Family and Welfare saw the
highest increase in allocations.
▪ The estimated interest payments would be Rs 4,260 crore and loan payments are expected to be Rs
3,184 crore, apart from Rs 448 crore on other loans and Rs 2,741 crore on maintenance.
▪ As per the Budget Estimates, against an expenditure of every 100 rupees, the State will have 73.36 as
the Total Receipt including Transfers from the Central government excluding Loans. The gap of 26.64 will
be met by borrowings.
▪ As per the Budget Estimates, against an expenditure of every 100 rupees, the State will have 73.36 as
the Total Receipt including Transfers from the Central government excluding Loans. The gap of 26.64 will
be met by borrowings.
 HP State Revenue Receipts % (2018-19)

Own Tax
Central Grants, Revenues,
45.34 27.13

Non Tax
Revenue, 6.52

Share in
Central Taxes ,
21.01

Annual Plan: The annual plan of Himachal Pradesh for 2018-19 has been proposed at Rs 6,300 crore
compared with Rs 5,700 crore for the current fiscal, a 10.52 per cent increase