The Union government has provided substantial financial support to Himachal Pradesh for its development agenda, releasing a total of Rs 62,685 crore over the last three financial years. This funding, spanning from 2022-23 to 2024-25, is aimed at bolstering the hill state's infrastructure, social welfare schemes, and various capital projects.
Breakdown of Financial Assistance
The details of the fund disbursement were provided in the Rajya Sabha on Tuesday by Union Minister of State for Finance, Pankaj Chaudhary, in response to a query from Himachal Pradesh MP Harsh Mahajan. The annual breakdown reveals a consistent increase in support: Rs 19,913 crore was released in 2022-23, followed by Rs 20,960 crore in 2023-24, and Rs 21,810 crore in the current financial year, 2024-25.
The funds were channeled through multiple avenues, including:
- Tax Devolution: States' share of central taxes.
- Finance Commission Grants: Recommended allocations for state development.
- Additional Central Assistance (ACA) for Externally Aided Projects (EAPs).
- Special Assistance and loans under capital expenditure schemes.
Special Provisions for Hill States
Minister Chaudhary highlighted a key benefit for hill and north-eastern states. Under the ACA for Externally Aided Projects, these states receive a highly favourable 90% grant component, with only 10% as a loan. Leveraging this provision, Himachal Pradesh has received Rs 6,064 crore under ACA for EAPs from the financial year 2020-21 up to December 10, 2025.
Furthermore, the state has been a significant beneficiary of the Special Assistance to States for Capital Investment (SASCI) scheme, launched in 2020-21. Under this scheme, designed to boost infrastructure spending, Himachal has been allotted Rs 6,736 crore between 2020-21 and 2025-26 (up to Dec 10, 2025).
Sector-Wise Impact of Funds
The capital injected through the SASCI scheme has been strategically deployed across vital sectors of the state's economy. The funds have been earmarked for creating and upgrading assets in:
- Education
- Power and Energy
- Transport
- Water Supply
- Roads and Bridges
This targeted investment is expected to accelerate Himachal Pradesh's developmental trajectory, improve public services, and create long-term infrastructure that benefits its residents. The consistent and growing central support underscores the government's focus on ensuring balanced regional growth across India, particularly in strategically important hill states.
