On March 17, Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu presented the budget for the financial year 2025-26, announcing a drastic increase in the price of cow and buffalo milk. The price of cow milk has been raised from ₹45 to ₹51 per litre, while buffalo milk has been increased from ₹55 to ₹61 per litre. This sharp hike, along with a ₹6 increase in the minimum support price for milk, has come as a fresh economic blow to the people of Himachal Pradesh. While the government has introduced a ₹2 transit subsidy for cattle farmers, the overall rise in milk prices will badly impact common households.
Beyond the increase in milk prices, the Sukhu government’s economic mismanagement has left the state in a severe financial crisis. Sukhu himself admitted that nearly 70% of the loans taken over the last two years were used to repay the debts of the previous government. However, despite these claims, the state’s debt exposure has skyrocketed to ₹1,04,729 crore, with ₹29,046 crore being borrowed under the current Congress administration. Shockingly, only ₹8,093 crore has been spent on actual development work, reflecting the lack of financial discipline under Sukhu’s leadership.
In a desperate attempt to manage its financial crisis, the Sukhu government had resorted to targeting Hindu temples for revenue. A notification issued by the state government urged temple trusts to contribute funds to the Mukhyamantri Sukh-Aashray Yojana and Mukhyamantri Sukh Shiksha Yojana. The move sparked outrage, with BJP leader Jairam Thakur accusing the Congress government of hypocrisy.
The financial distress of Himachal Pradesh under the Sukhu government is evident in its reckless policy decisions. The state also planned to lease out the century-old Hotel Wildflower Hall to generate revenue. In November 2024, the government took an additional ₹500 crore loan as part of its ₹6,300 crore borrowing limit, further increasing its debt burden.
Last August, the state was unable to pay salaries and pensions, affecting 3.91 lakh individuals. To generate funds, the government imposed a milk tax, an environment tax on electricity consumption, and scrapped the 125 units of free electricity that were previously available. Diesel prices were hiked by ₹7 per litre, and water prices in rural areas were increased from ₹10 to ₹100. Additionally, the government attempted to introduce a cess on hydro projects to raise ₹4,000 crore, which was widely criticized as a regressive move.
The Congress government has also considered legalizing cannabis cultivation for industrial and medical purposes to address its financial woes. With a debt-to-GSDP ratio of 43%, Himachal Pradesh is now on the path of economic collapse, similar to Punjab. Instead of providing relief to the citizens, the Congress government has burdened them with taxes and sought to exploit temple funds to sustain its failing governance.
The Sukhu government’s economic mismanagement and burdening of citizens with price hikes, additional taxes, and temple fund extractions expose its inability to govern effectively. Himachal Pradesh is suffering under Congress’ financially irresponsible policies and freebies.
