Himachal Pradesh's 2025: Fiscal Woes, Natural Disasters & Political Tests for Sukhu Govt
Himachal's 2025: Sukhu Govt Faces Fiscal Stress, Disasters

The year 2025 proved to be a defining period for Himachal Pradesh, presenting the Congress government led by Chief Minister Sukhvinder Singh Sukhu with a formidable array of challenges. As the administration completed three years in office, it grappled with a shrinking state treasury, repeated environmental calamities, and intense political scrutiny, setting the stage for a critical year ahead.

A Year of Highs and Lows: Key Incidents of 2025

The fiscal health of the hill state emerged as a primary concern, with its debt burden crossing the staggering mark of Rs 1 lakh crore. This economic strain forced the government to rely on borrowings to meet essential expenses like salaries, pensions, and development work. Compounding these financial troubles was the task of implementing pending election guarantees, most notably the promise of providing 300 free electricity units to every household.

The state's resilience was severely tested by nature's fury. Himachal witnessed a series of cloudbursts, flash floods, and landslides throughout the year, leading to tragic loss of life and widespread destruction. Revenue Minister Jagat Singh Negi provided sobering statistics: these disasters claimed 454 lives, left 498 injured, and 50 persons missing. The estimated damage to public and private property, along with agriculture and infrastructure, is approximately Rs 5,000 crore. Districts like Mandi, Kangra, Shimla, Chamba, and Una were among the worst affected.

On the political and law-and-order front, the year was no less eventful. The mysterious death of Himachal Pradesh Power Corporation Limited (HPPCL) chief engineer Vimal Negi became a major controversy. After his body was recovered from Gobind Sagar Lake in March, the case took a significant turn in July when the Himachal Pradesh High Court ordered the probe to be transferred from the state police to the Central Bureau of Investigation (CBI). The government's attempt to retain the investigation with the state police had put it on the defensive.

Furthermore, several opposition leaders faced legal action, with the BJP alleging political motivation behind the cases. The Congress party itself saw a leadership change, with four-time MLA and Dalit leader Vinay Kumar appointed as the new state president in November, replacing Pratibha Singh.

Ongoing Crises and Governance Tests

The drug menace, particularly the spread of heroin known locally as 'chitta', remained a persistent social challenge. The government identified 247 gram panchayats as drug-affected zones and intensified its anti-drug campaign. According to officiating DGP Ashok Tewari, 1,720 NDPS cases were registered in 2025, with 72 repeat offenders detained under the PIT-NDPS Act and assets worth Rs 48 crore seized.

A major controversy erupted at the Indira Gandhi Medical College and Hospital (IGMC) in Shimla following an alleged assault involving senior resident doctor Raghav Narula and a patient, Arjun Singh. The government terminated Dr. Narula's services, leading to an indefinite strike by resident doctors who are demanding a reconsideration of the dismissal and assurances on hospital security.

Amid these challenges, the state did secure a victory in the Supreme Court, which ruled in its favour in the multi-crore Hotel Wildflower case at Mashobra.

The Road Ahead: Major Challenges for 2026

As Himachal Pradesh steps into 2026, the Sukhu government confronts a packed agenda of critical tests. The immediate priority will be conducting long-pending Panchayati Raj elections across 3,616 gram panchayats. While originally due in January, the polls have been delayed, with the government citing the continued enforcement of the Disaster Management Act.

Managing the severe fiscal stress will be paramount. The state has already exhausted its approved borrowing limit of Rs 7,200 crore for the 2025-26 financial year, making the final quarter particularly challenging. Fulfilling the flagship promise of free electricity, alongside other guarantees, will require navigating these tight financial constraints.

On the policy front, the government has announced a Rs 20 crore allocation for a state-of-the-art de-addiction centre at Kotla Barog in Sirmaur. It also plans a proposed Rs 3,000 crore investment over two years to overhaul the public healthcare system. Additionally, administrative reforms are on the cards, with plans to shift select government departments from Shimla to Kangra and Dharamshala to ease congestion.

The year 2025 has left the Sukhu government at a crucial crossroads. Balancing fiscal discipline with welfare promises, rebuilding after natural disasters, and restoring public confidence across various sectors will define its trajectory in the coming year, all under the shadow of a mounting debt and increasing environmental pressures.