Shimla
The Himachal Pradesh government’s Budget 2026-27 focuses on fiscal discipline, employee welfare, and infrastructure growth, while introducing temporary salary deferments for top officials and a series of welfare and development measures.
In a major austerity step, the government has announced a temporary deferment of salaries for six months. The Chief Minister will defer 50% of salary, ministers 30%, and MLAs 20%. Similar cuts apply to senior bureaucrats, police and forest officials, while Group A and B officers will see a 3% deferment. However, Group C and D employees have been exempted, ensuring full salary protection for lower staff.
The government clarified that this is a temporary measure, and deferred amounts will be paid once the financial condition improves.
Employee Welfare & Regularisation
The budget promises relief to employees by clearing pending dues. Pension arrears before 2016 and retirement benefits will be paid in 2026-27, with around ₹300 crore allocated. Contract and daily wage workers will be regularised based on service deadlines, while daily wages have been increased to ₹450 per day. Outsourced workers will now receive a minimum of ₹13,750 per month.
Boost in Honorarium
Several categories of workers will benefit from increased honorarium:
Anganwadi workers: ₹11,500/month
Mini Anganwadi workers: ₹8,300/month
Helpers, ASHA workers, water guards, and others: ₹500–₹1,000 hike
Mid-day meal workers: ₹5,500/month
Industry, Jobs & Economy
To strengthen the economy, the government announced:
Launch of “One District Three Products” programme
HIM Silk Mission with ₹2 crore allocation
Skill training for 10,000 youth, with stipend support
Weekly GST awareness campaigns to improve compliance
Infrastructure & Urban Development
The state plans to develop modern townships including “Him Chandigarh” and “Kangra Valley Township”. A Cyber City in Solan and a Centre of Excellence in Artificial Intelligence in Shimla will also be established. Green energy-based data centres will receive incentives.
Governance & Digital Push
The budget emphasizes e-governance with AI integration:
AI-enabled helpline and document management system
Voice-command based citizen services in rural areas
Online mutation system for land records
Recruitment of 645 patwaris
Environment & Disaster Management
A Green Livelihood Initiative and Hibiscus scheme will promote medicinal farming. The government has allocated ₹400 crore for disaster risk reduction, including flood mapping and early warning systems.
Social & Other Announcements
Stamp duty relief for women on property purchase
Formation of Paramilitary Welfare Board
Increase in MLA discretionary funds and development grants
Promotion of GI-tagged products
Overall, the budget balances austerity with welfare and development, aiming to stabilise finances while pushing growth, employment, and digital governance in Himachal Pradesh.
