Himachal's FY26 Fiscal Deficit Projected at 4.74% of GSDP Amid Widening Gap

• Himachal Pradesh's fiscal deficit for FY26 is projected at 4.74% of its GSDP, according to the FRBM report.
• The current financial year's fiscal deficit is estimated at Rs 12,114 crore, exceeding budget estimates by Rs 1,776 crore.
• The widening deficit is attributed to natural calamities, committed liabilities, and reduced Goods and Services Tax (GST) rates.
• Experts suggest enhancing non-tax revenue and maximizing centrally sponsored schemes to improve the state's economy.
• Expenditures on salary, pension, subsidies, and interest are higher than estimated, contributing to the deficit, alongside a Rs 1,726 crore shortfall in revenue receipts.

Why It Matters: Himachal's rising deficit affects state finances and public welfare.