India, March 19 -- Himachal Pradesh's annual budget, presented on Monday by chief minister Sukhvinder Singh Sukhu, reflects a balancing act between fiscal prudence and ambitious plans for tourism, green energy, and rural development. It also underlines the financial challenges that the hill state faces amid dwindling central grants and mounting debt burden.

To mitigate this crisis, economists recommend a three-pronged strategy. First, revenue generation needs a major boost through enhanced tax compliance, rationalisation of subsidies, and monetisation of state assets. Second, Himachal Pradesh will do well to leverage its vast natural resources by aggressively advocating for financial recognition of its ecological contributions, estimated...