Shimla-Himachal Pradesh Economic Survey 2020-21 was presented at the State Vidhan Sabha today. According to the Survey, as per first advance estimates, Himachal’s GSDP for fiscal 2020-21 is estimated to contract by 6.2 per cent. Per Capita Income at current prices is estimated to drop by 3.7 per cent to 1,83,286 for the fiscal year 2020-21.
The Gross State Domestic State Product at current prices (Nominal GSDP), is estimated to be Rs.1,62,816 crore in 2019-20 as against Rs. 1,49,442 crore in 2018-19 showing a growth rate of 8.9 percent during the year.
The cause for this contraction was cited to be the impact of the COVID-19 pandemic.
The share of agriculture and allied sectors a key sector has declined from 15.89 per cent in 2015-16 to 13.62 per cent in 2020-21. The share of agriculture and allied sectors in the total GVA of the State has been declining on account of relatively higher growth performance of non-agricultural sectors due to structural changes taking place in the economy and is in line with national and international trends.
Tourism sector in Himachal saw a contraction of 81.33 per cent in foreign and domestic tourist arrivals in 2020. Trade, Hotel and Restaurant sector showed a contraction of 9.2 per cent during 2020-21 as against a growth of 4.6 per cent in 2019-20. Transport by other means, namely, road transport (mechanised and non-mechanised), water transport, air transport and services incidental to transport, too showed a negative growth of 28 per cent during 2020-21 as against 5.6 per cent growth during 2018-19.
According to the Survey, Himachal Pradesh’s economy suffered serious effects on approximately all of its sectors, ranging from acute to minor. The economy received two reinforcing shocks on both demand and supply. The largest shocks are witnessed in transport, mining and quarrying, forestry and, logging and construction. Tourism plays an important role in revenue generation and livelihood of people of the State; this was hit the worst due to COVID-19 lockdown.
Trends in the Industrial Sector
The manufacturing sector showed a contraction of 14.2 per cent during 2020-21 as against a positive growth rate of 0.3 per cent in 2019-20. The Mining and Quarrying sector showed a negative growth of 18.4 per cent during 2020-21 as against 4.3 per cent growth in 2018-19. As per the estimates for 2019-20 at constant (2011-12) prices, the GVA of this secondary sector is estimated at 53,498 crore against 53,456 crores in 2018-19.
Mining & Quarrying Sector GSVA decreased from 0.64 per cent in the year 2016-17 to 0.25 per cent in 2020-21. The construction sector, contracted by 11.5 per cent in 2020-21 as against 3.1 per cent growth in 2019-20.
There are more than 28,000 enterprises in the State. Micro, Small & Medium Enterprises (MSME) comprising 99 per cent industrial sector. 93 per cent of the total employment generation of the industrial sector is from MSME sector.
Read Full HP Govt Economic Survey 2020-21
HP Govt Employees to Get Higher Pay Scale on Completion of Two Years of Service: CM Jairam
Shimla-Himachal Pradesh Government employees working in different departments before January 3, 2022, would be given a higher scale at par with other employees on completion of two years tenure of regular service. A higher pay scale was also announced for the Junior Office Assistants (IT) on completion of two years of regular service.
Chief Minister Jairam Thakur made these announcements during the Karamchari Maha Sammelan of the Himachal Pradesh Non-Gazetted Employees Federation at the hotel Peterhof on Sunday.
He appreciated the role played by the employee especially frontline workers in the battle against the pandemic.
He said most of the government employees in the state have been given revised pay scales and on average, every employee has got the benefit of a 12 to 15 percent salary hike. There has also been an increase in the pension of about 1.50 lakh pensioners of the state. The financial benefits of Rs. 7801 crore have been given to state government employees and pensioners from the year 2018 to 2022. The pensioners who retired before 2016 are getting the benefit of a 15 to 20 percent increase in the pension while around 40 thousand pensioners who retired after 2016 would be benefitted soon, he said.
He said the daily wages were Rs. 210 in the year 2017 which has been increased by the present state government to Rs. 350. Similarly, 12 per cent interim relief annually has been provided to government employees and pensioners during the present government’s tenure. He said the Himachal government has provided Dearness Allowance to its employees and pensioners on the lines of Punjab and Central governments from the due date. The Punjab government has given only 5 percent interim relief to the employees while the Himachal government has provided 21 percent interim relief to its employees.
“Out of the total interim relief amount given to the employees and pensioners amounting to about Rs. 6500 crore, Rs. 3500 crore has been paid during the tenure of our government” added the Chief Minister.
He said that the state government has increased the government contribution for NPS employees from 10 percent to 14 percent benefitting more than one lakh employees. The NPS employees are being given the benefits of retirement and death gratuity at par with employees falling under the old pension scheme. The government has also increased the upper limit of death gratuity from Rs. 10 lakh to Rs. 20 lakh.
The Chief Minister said the state government has also increased the honorarium of para-workers working in various departments. The salary of outsource workers has been hiked by Rs 1,500 per month.
Non-Gazetted Employees Federation President Ashwani Thakur thanked the Chief Minister for providing various financial and other benefits to different categories of government employees.
Most Covid Restrictions to be Lifted From March 31, Mask and Hand Hygiene to Continue
New Delhi-The Centre has issued a notification to the States informing that the provisions of the Disaster Management (DM) Act, 2005 will not be invoked in the country after March 31. The Union Health Ministry said that the use of face masks and following hand hygiene will continue.
It implies that most of the Covid-related rules and restrictions would end.
Union Home Secretary Ajay Bhalla issued the notification which said that the decision was taken following the overall improvement in the situation and the preparedness of the government in dealing with the COVID-19 pandemic.
However, local authorities and State police can still invoke fines and criminal cases against persons violating COVID-19 norms under the Indian Penal Code (IPC), a senior government official said.
The DM Act was invoked on March 24, 2020, due to the pandemic
“Over the last seven weeks or so there has been a steep decline in the number of cases. The total caseload in the country stands at 23,913 only and the daily positivity rate has declined to 0.28%. It is also worth mentioning that with the combined efforts, a total of 181.56 Cr vaccine doses have been administered,” the notification said.
“I would like to mention that in view of the nature of the disease, we still need to remain watchful of the situation. Wherever any surge in the number of cases is observed, the States/UTs may consider taking prompt and proactive action at a local level, as advised by MoHFW (Health Ministry) from time to time,” the notification said.
The Indian government had issued various guidelines and measures for the first time on March 24, 2020, under the Disaster Management Act to curb the COVID-19 situation in the country, which have been modified several times thereafter.
India currently has 23,087 active COVID-19 cases and recorded 1,778 new cases and 62 deaths in the last 24 hours. The daily positivity rate has also declined to 0.28%.
HP Cabinet Decisions: Country Liquor Made Cheaper in New Excise Policy, Read All Decisions
Shimla-A meeting of the Himachal Pradesh Cabinet was held on March 20, 2022, under the chairmanship of Chief Minister Jai Ram Thakur.
The excise policy for the financial year 2022-23 was approved. Approval was also given for the renewal of retail excise vends in the state for the financial year 2022-23 at the renewal fees of 4% of the value of unit/vend.
The State Government said that wants to enhance the government revenue and curb the smuggling of country liquor from the neighbouring states by a reduction in its price.
The brands of Country Liquor will be cheaper as license fees have been reduced. This will help in providing good quality liquor at a cheaper rate to the consumers.
In the new excise policy, the 15% fixed quota of country liquor for manufacturers and bottlers to be supplied to the retail licensees has been abolished. According to the government, this step will give the retail licensees to lift their quota from the suppliers of their choice and further assure the supply of good quality country liquor at competitive prices. The MRP of country liquor will be cheaper by 16% of the existing price.
In this year’s policy, the Gaudhan Vikas Nidhi Fund has been enhanced by Re.1/- from the existing Rs.1.50 to Rs.2.50.
The fixed annual license fee of Bars has been rationalized by abolishing the area-specific slabs of license fee. Now throughout the State, there will be uniform license slabs based upon the room capacity in hotels.
Rates of the annual fixed license fee of Bars in the tribal areas has been reduced considerably.
Further, all the above stakeholders will have to install CCTV cameras at their establishments as it was made mandatory for them.
Wholesale vends and retail vends, the penalty provisions under the H.P. Excise Act, 2011 have been made more stringent.
An end to end online Excise Administration System would be established in Himachal Pradesh, the government said.
HP Government estimates a collection of Rs 2131 crore revenue during the year, which will be Rs. 264 crores higher than the financial year 2021-22 – growth of 14% in state excise revenues.
The Cabinet also gave its nod to amend Himachal Pradesh Disaster Relief Manual-2012 to include deaths due to biting of honey bees, hornet and wasps, accidental drowning and deaths due to accidents of vehicles (including land, water and air) under this Manual.
The Cabinet gave its approval for filling up 11 posts of ‘A’ Class Tehsildar in Revenue Department through direct recruitment on regular basis through Himachal Pradesh Public Service Commission.
HP State Toll Policy 2022-23
The HP Cabinet also gave its nod to HP State Toll Policy for the year 2022-23 which envisages auction cum tender for all the toll barriers in the State. During the year 2021-22, toll revenue has registered a growth of 20 percent of the previous year’s revenue.