COVID pandemic, pensions, subsidies wore down Himachal finances: Report

Vibha Anand, Published on Mar 24th, 2026

COVID pandemic, pensions, subsidies wore down Himachal finances: Report

Himachal Pradesh government's fiscal stress was caused by weak revenue growth that coincided with COVID-19 pandemic, when expenditure was increased to focus on welfare and support measures, Moneycontrol reported. This caused the state's fiscal deficit to widen beyond 4% of state GDP, compared with 3.4% before the pandemic. Meanwhile, Himachal's pension and subsidy bills have doubled in six years.

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