Gist of Himachal Pradesh (HP) Budget 2021-22

By | March 8, 2021

Compiled by: Aditya Chauhan (Executive Secretary), Dept. of Urban Development, Govt. of HP

Macro-Economic Data

  • Indian economy has contracted by -23.9% in 1st quarter 2020-21
  • At the end of year, the contraction reduced to -7.7% due to V shape recovery
  • In 2021-22 Indian economy stated to grow 11%.
  • The state GDP stated to contract by -6.2%.
  • The per capita income has reduced to 1.83 lakh from 1.90 lakh.

Annual Plan of HP – 9405 Crore

  • SC development Plan- 2369 crore (25.19%)
  • Tribal Area Development Plan – 846 crore   (9%)
  • Backward Area development Plan    93 crore
  • 15th finance commission devolution to HP Increased by 35% over 14th FC
  • As part Of Atmanirbhar Stimulus, The Union Government has provided Rs. 450 crore to the State as interest-free loan in two instalments

Election-related Initiatives:

  • Currently, there are 3,615 Gram Panchayats in the State
  • 102 Gram Panchayats have returned their representatives unopposed, without casting a single vote. All such Panchayats are eligible for getting an incentive grant of Rs.10 lakh each
  • District Resource Centres have been constructed in five districts namely Kangra, Hamirpur, Solan, Mandi and Bilaspur to train representatives of Panchayati Raj Institutions,. Three centres are under construction is Kinnaur, Sirmour and Shimla. In 2021-22 work on District Resource Centres will be started in Una and Kullu
  • 3 new Municipal Corporations at Mandi, Solan and Palampur; one new Municipal Council at Sarkaghat; and seven new Nagar Panchayats at Shahpur, Amb, Ani, Nirmand, Chirgaon, Nerwa and Kandaghat have been notified

Municipal reform:

  • All the ULBs will strive to get ODF+ level certification
  • 24X7 water distribution system for all Municipal Wards in Shimla town will be started in 2021-22 with an outlay of about Rs.270 crore
  • Sewage Treatment Plants using ‘Root Zone Technology’ are being established at four places in Dharamshala
  • Four Faecal Sludge Management Schemes are under construction on pilot basis
  • Under Ease of Doing Business reforms, AutoDCR software will be started in Urban Local Bodies and planning areas enabling them to grant online approvals to building maps
  • 163 crore enmarked in 2021-22 for development of infrastructure and service delivery in urban areas as per the recommendations of the State Finance Commission
  • 161 crore will be provided to Urban Local Bodies and Cantonment Boards for the coming year as recommended by the 15th Finance Commission

Sanitation & Water Supply:

  • The Hon’ble MLAs have been suggesting the need of Sewage Treatment Plants in thickly populated rural areas.
  • 166 villages adjoining towns will be linked to the pre-existing Faecal Sludge Management Plants
  • 13 lakh out of 17 lakh household have functional tap connection
  • 3 lakh new connections will be provided during 2021-22 under Jal Jeevan Mission
  • Solar power based drinking water supply scheme will be constructed in Paonta Sahib on experimental basis in 2021-22


  • Bulk Drug Park project worth Rs.1190 crore to be set up on 1405 acre land in Una District
  • Medical Devices Park in Nalagarh on 265 acre land with the investment of Rs.261 crore
  • Plastic Park in Nalagarh over 100 acre land
  • Electronics Manufacturing Hub and Power Equipment Manufacturing Hub in Nalagarh
  • Ek Zila, Ek Utpad Karyakaram” one product each for 12 districts of the State has been approved, based on local possibilities
  • 755 MW capacity are likely to be commissioned, which include Bajoli Holi (180 MW), Parvati-II (400 MW), Tidong-I (150 MW) and Lambadug (25 MW)
  • State Government proposes to frame a policy to permit commercial hemp cultivation with proper regulatory framework

Women empowerment:

  • Women Help Desks will be established in 136 Police Stations under Nirbhaya Fund in 2021-22.
  • 25 %reservation for women in direct recruitment for the posts of Constables and Sub-Inspectors in the Police Department

Youth & sports:

  • In 2021-22, the construction work of indoor stadia in Sundernagar and Solan; Hockey Astroturf at Majra will be started with a cost of Rs.14.50 crore
  • Work to set up pre-coaching Sainik Academy at Barchhwad, Mandi


  • Town and Country Planning Department will prepare a detailed plan to regulate adverse and unplanned development on either side of Atal Tunnel.
  • To encourage Rural Tourism, 15 locations- one each in non tribal districts and one each in the five Integrated Tribal Development Project (ITDP) areas will be developed
  • Selected roads will be developed as ‘Tourist Roads’ in a systematic and phased manner
  • One Hotel of HPTDC will be developed as Ayurvedic Wellness Centre and one Hotel will be developed as Destination Wedding Centre
  • All willing Home Stay units will be brought on board for online booking and publicity by linking them to the websites of HPTDC
  • Lahaul & Spiti will be developed as Eco Tourism Destination
  • Selection of new skiing site in Lahaul valley.  The Skating Rink in Lahaul Valley.  All facilities will be provided to promote Ice Hockey in Spiti Valley
  • Youth of Lahaul & Spiti will be trained for self employment in Tourism trade
  • Cultural Centre, Bara Gaon, Manali
  • Cultural Centre, Janjehli
  • Renovation of Vijay High School, Mandi
  • Convention Centres at Mandi, Dharmshala and Kiari Ghat
  • Parking at Jawalamukhi
  • Renovation of Chamunda Temple Complex
  • Renovation of Bantony Castle Building, Shimla
  • Art and Craft Centre, Kangra
  • Artificial Climbing Wall, Manali
  • Light and Sound Show, Shimla
  • Art and Craft Centre, Bhalei Mata, Chamba
  • Para Gliding Centre, Bir Billing
  • Beautification of Hateshwari Temple,
  • Hatkoti, Shimla
  • Heliports at Shimla, Kangni Dhar, Rampur and Baddi

Disaster Management:

  • The State Government has received in- principle approval to execute a project worth Rs.800 crore for Disaster Risk Reduction with the assistance of the French Development Agency
  • Main components of the project are warning systems, capacity building and development of climate change resilient policy
  • National Disaster Management Authority for implementation of World Bank funded National Earthquake Risk Mitigation Project HP one among 8 state

Floriculture Reform:

  • Marketing and trading of flowers will be made a permissible activity in Mandis, by making appropriate addition in the Schedule of HP Agricultural, Horticultural Produce Marketing (Development and Regulation) Act, 2005
  • Green houses will be developed on 1 lakh square metres area at a cost of Rs.11 crore in 2021-22 under Himachal Pushap Kranti Yojana to boost floriculture
  • HIMCAD Scheme has been started by the Government. 15,242 hectares of CCA have already been brought under the Command Area Development Scheme.

Animal Husbandry:

  • Sheep breeding centres of Taal and Jeori and at cow breeding Centres at Palampur and Bagthan will be developed as Fodder Production Centres
  • One ornamental fish unit each will be set up in Shimla and Kangra in the private sector.
  • One Bio flock Fish Farming unit will come up in Kangra district. 100 new Trout units will also be established.

 Agriculture Reform:

  • Promotion of Climate Change Resilient Agriculture
  • Formation of Expert Group to give recommendations to make efforts for doubling farmers income more effective
  • 50 Societies on pilot basis with the assistance of NABARD to strengthen the Primary Agriculture Cooperative Societies
  • Chharma’ (Seabuckthorn) plantation will be undertaken on 250 hectares in the high altitude areas of Lahaul & Spiti and Kinnaur districts in the next 5 years
  • The work on 3 new Mandis – Mehndali and Shilaroo (Shimla), Bandrol (Kullu) and expansion and up-gradation of 20 existing Mandis would be completed in 2021-22

Actions for climate change:

  • A Digital Library on climate change adaptation and mitigation will be established in collaboration
  • Presently, 3 Externally Aided Projects are being implemented in the State namely
  1. Forest Ecosystem Climate Proofing Project of KfW
  2. ICA assisted Improvement of Himachal Pradesh Forest Ecosystem and Livelihood;
  3. World Bank assisted IDP for Source Sustainability and Climate Resilient Rain-Fed Agriculture

Self Help Group:

  • Self Help Groups (SHGs) are a useful tool to empower rural women.
  • Presently over one lakh SHGs have been formed by different departments in the state.
  • The Govt announce that 5500 Self Help Groups will be provided Rs.8 crore 25 lakh as Revolving Fund and 1,500 SHGs will be provided Rs.7 crore 50 lakh as Community Investment Fund under ‘National Rural Livelihood Mission’
  • At present the SHGs can avail interest subvention based loan up to an amount of Rs.3,00,000. The govt propose that the SHGs willing to take a loan up to Rs.5,00,000

 Health initiatives:

  • The govt announced to establish Super Speciality Hospital, Chamiyana, Shimla
  • HIMCARE beneficiaries of above 70 years of age and all orphan children living in the Bal Ashrams of the State will be covered under the scheme without having to make any contribution 

Education reforms:

  • School examination for the students studying in 3rd, 5th and 8th standards NDP (Non-Detention Policy)
  • Top-100 Scholarship Scheme: Under the scheme, the best 100 students from all Government schools will be selected by the SCERT after 5th standard.
  • ‘Him Darpan Shiksha Ekikrit Portal’ will be developed to deliver quality education to increase the effectiveness of the education system
  • During COVID time the education department provided quality education by reaching out to the remotest parts of the State through ‘Har Ghar Pathshala’, the digital platform
  • ‘Sriniwas Ramanujam Scheme’, meritorious students are given laptops
  • Mission Drishti’ to cover all Government school students from Class-VI to Class-X. Free eye check-ups will be done and free spectacles


  • 5 thousand kilometres of roads in all the divisions of PWD in 2021-22 under Output and Performance-Based Maintenance Contract (OPBMC)/ Performance-Based Maintenance Contract (PBMC) to ensure improved surface quality of roads
  • The DPR for exploring the construction of 4-kilometre long tunnel under Jalori Pass
  • Green National Highway Project: 2 road highwarys are selected
  1. 105 kilometre long Paonta Sahib-Gumma Feedus Pul road
  2. 110 kilometre long Hamirpur to Mandi road
  • 29/87 Panchayats were connected with the motorable road during 2020-21
  • The inland water transport service between Kasol (Bilaspur) and Tattapani in Sutlej River has started recently
  • The World Bank-funded Himachal Pradesh State Roads Transformation Project
  1. Up-gradation of approximately 650-kilometre road length to intermediate/ double lane in three tranches
  2. 1,350 kilometre long roads will be maintained and improved under the project

 Tribal Dev:

  • Indoor Stadium in Kaza will be upgraded as High Altitude Mountain Training Centre
  • Anti freeze water supply system will be established in Keylong

New Initiatives:

  • Vidhayak Kshetra Vikas Nidhi Yojana increased from 75 crore to 1.80 crore.
  • An integrated Command and Control Centre ICCC will be established in the State Secretariat at Shimla for Smart city in Dharamshala and Shimla
  • New Scheme Swaran Jayanti Sampark Sankalp all Panchayati Raj bodies and Municipal bodies will be digitally connected through video conferencing in a phased manner. 60 crore
  • An Integrated Beneficiary Data Base Management System will be developed for proper selection of beneficiaries
  • To improve Governance and to promote healthy competition among the Deputy Commissioners, ‘Swarn Jayanti Innovation Fund’ will be established
  • To increase transparency in public life, it would be mandatory to upload online Annual Assets & Liabilities Statement for Class I & II officers
  • “There is no chance for welfare of the world unless the condition of woman is improved. It is not possible for a bird to fly on only one wing
  • JICA project in 5 districts of the State, the 2nd phase of the project will be implemented in all 12 districts of the State. This project will be implemented with a total cost of Rs.1,055 crore for which formalities are being finalized
  • ‘Prakritik Kheti Khushhaal Kissan Scheme’ has been running successfully and has given encouraging results. 1,05,218 farmers have adopted this scheme. 50,000 more farmers would be brought under this scheme in 2021-22

New Schemes:

  • “Swaran Jayanti Paramparagat Beej Suraksha Samvardhan Yojana” to conserve and propagate traditional seeds in the State
  • “Research and Development Fund” for the Agriculture and Horticulture Universities of the State. This fund will be established with an initial corpus of Rs.5 crore
  • World Bank-funded Horticulture Development Project with 1000 crore
  1. Five lakh rootstocks will be imported.
  2. 8 thousand hectares command area will be provided minor irrigation facilities through 200 Water Users Associations.
  3. A Gene Repository would be established in Dr. Y.S. Parmar University, Nauni.
  4. The work of CA stores and Pack Houses at JarolTikker, Rohru, Oddi, Patlikuhl and Tutupani will be completed.
  5. An Apple Juice Concentrate Plant will be established in the plant at Parala, Shimla.
  • Swarn Jayanti Smridh Bagwan” to provide high-density good quality plants to the farmers at affordable cost
  • setting up of the State Bee Board to encourage beekeeping activities and to ensure appropriate price to farmers for their produce
  • Swaran Jayanti SHG Sahyog Yojana
  • Best 100 SHGs will be provided performance-based incentive to meet these objectives
  • “HIMIRA Rasoi (Canteen)” on pilot basis under which SHGs will run canteens in Technical Education Institutions and government offices to provide additional livelihood opportunities
  • The successful model of “She-Haat” started in Sirmour District will be replicated in other districts
  • Swarn Jayanti Gram Swarojgar (Parivahan) Yojana”. Under the Yojana, it is proposed to ply upto 18 seater vehicles, on identified motorable routes, which do not have any bus service by giving route permits to the unemployed youth on concessional tax rates
  • Swaran Jayanti Green Building Initiative 1,000 buildings will be retrofitted to become energy efficient.
  • New scheme “Shagun” in 2021- 22. The young girls belonging to Scheduled Caste, Scheduled Tribe and Other Backward Classes of BPL families will be provided a grant of Rs.31,000 at the time to their marriage
  • Swaran Jayanti Naari Sambal Yojana to expand social security net for elderly women of Himachal Pradesh. All the eligible elderly women in the age group of 65-69 years with social security pension of Rs.1,000 per month
  • Adarash Varisht Naagrik Home’ will be made functional in Mashobra during 2021-22 for senior citizens on pay and stay basis
  • Swaran Jayanti Ashraya Yojana” 12000 beneficiaries will be provided houses equipped with all basic facilities
S.No Sectors 2020 2021
1 Revenue reciept 35,588   crore 37,028 crore
2 Revenue expenditure 36,011 crore 38,491 crore
3 Revenue defecit 423 crore 1463 crore
4 Fiscal Defecit 4.0 % 7,789 crore



Read more: Previous Year Papers of HPAS Prelims and Mains

Category: Budget of HP

2 thoughts on “Gist of Himachal Pradesh (HP) Budget 2021-22

  1. nancy

    thankyou for the great efforts to provide the authentic content to the students


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