Himachal Pradesh

Financial
al Allocation and Human Develo
opment

PLANNING DEPARTMENT
GOVERNMENT OF HIMACHAL PRADESH
SHIMLA-171002
 CONTENTS
Preface
Acknowledgements
Planning Team
Executive Summary…………………………………………………………………......…..1-4
Economic Growth and Development
Fiscal Management and Decentralized Sectoral Planning
Human Development Status
Chapter-I Introduction, Context and Objectives………………………………………5-12
I.1 Introduction
I.2 Planning Commission and UNDP Initiatives for Strengthening State Plans for Human
Development
I.3 Study Area Context
I.4 Aims and Objectives
I.5 Research Questions
I.6 Framework of Study
I.7 Methodology
I.8 Data Sources
I.9 Primary Survey of Focused Groups
Chapter-II: Regional Profile, Economic Growth and Financial Allocations……………13-34
II.1 Himachal Pradesh – A Brief Profile
II.2 Himachal Pradesh – Economy and Economic Development
II.3 Sector wise Contribution to Economy
II.4 Sectoral Annual Growth Rate
II.5 State Gross Domestic Product and Net Domestic Product
II. 6 Sectoral Contribution of State Gross Domestic Product
II. 7 Development Expenditure of State Gross Domestic Product
II.8 Allocation and Actual Expenditures under Five Year Plans
II.9 Himachal Pradesh Fiscal Management
II.10 Per Capita Revenue and Expenditure
II.11 Major Conclusions and Findings
Chapter-III: Sectoral and Departmental Expendituires and Decentralized Planning....35-54
III.1 Introduction to Sectoral Planning
III.2 Sectoral and Departmental Actual Expenditures during 12 th Five Year Annual Plans
 III.3 Growth Rate Sectoral and Departmental Actual Expenditures during Five-Year Plans
and Annual Plans
III.4 Plan/ Non-Plan Expenditures for Social Development Sub-Sectors
III.5 Decentralized Planning in Himachal Pradesh
III.6 Unit of Decentralized Planning in Himachal Pradesh
III.7 Sectoral Decentralized Planning Programmes (SDP) in Himachal Pradesh
III.7.1 Vikas Mein Jan Sahyog (VMJS)
III.7.2 Mukhya Mantri Gram Path Yojana (MMGPY)
III.7.3 Backward Area Sub Plan
III.7.4 Tribal Area Sub Plan
III.7.5 Scheduled Caste Area Sub Plan
III.7.6 Programme covered under Rural Infrastructure Development Fund(RIDF)
III.7.7 Finance Commission Award
III.7.8 Externally Aided Projects (EAPs)
III.8 Research Questions Evaluated
Chapter-IV Status of Human Development……………………………………………..55-80
IV.I Human Development in Himachal Pradesh
IV.2 Demographic Characteristics
IV.3 Sex Ratio
IV.4 Levels of Education Development
IV.4.1 Educational Institution Access and Availability
IV.4.2 Teacher/ Pupil Ratio in Educational Institutions
IV.4.3 General Literacy Rate
IV.4.4 Levels of Education
IV.4.5 Gross and Net Enrolment Ratio at Primary, Middle, High and Higher Secondary
Levels
IV.5 Health Care and Family Welfare
IV.5.1 Health Care Institutions and Access and Availability
IV.6 Health Care Indicators
IV.6.1 Crude Death Rate, Infant Mortality Rate
IV.6.2 Expectation of Life at Birth
IV.6.3 Birth Rate and Fertility Rate
IV.6.4 Total Fertility Rate
IV.7 Reproductive Health and Ante Natal Care
IV.8 Women’s Empowerment and Participation
 IV.9 Women Employment
IV.10 Women Participation in Mahatma Gandhi National Rural Employment Guarantee Act.
IV.11 Status of Infrastructure Development
IV.11.1 Connectivity and Road Network
IV.11.2 Sanitation, Safe Drinking Water and Other Public Services
IV.12 Natural Resource Management
IV.13 Research Questions Evaluated
Chapter V: Focused Group Discussion Findings……………………………………….81-97
V.1 Focused Group Discussion Sample Size and Its Characteristics
V.2 Field Survey Information on Fund Allocation, Expenditure and Utilization
V.3 Gram Panchayat Initiatives for Infrastructure Development
V.4 Education Levels
V.5 Healthcare Services
V.6 Village Infrastructure
Chapter VI: Linkages and Outcomes of Expenditures on Human Development……..98-102
VI.1 Context and Significance
VI.2 State Economy and Decentralization Planning
VI.3 Focused Group Discussion Findings
VI.4 Human Development Linkages and outcomes
VI.4 Research Questions Evaluated
Chapter VII Twelfth Five Year Plan and Annual Plans(2017-18 and 2018-19) Targets and
Beyond Assessment and Projections of Financial Allocation Required…………...….103-111
VII.1 Twelfth Five-Year Plan Targets
VII.2 Economic Development Targets
VII.3 Demographic Characteristics Targets
VII.4 Education Status Targets
VII. 5 Healthcare Status Targets
VII. 6 Twelfth Five Year Plan Targets, Present Status and Recommendations to achieve
Targets
VII. 7 Twelfth Five Year Plan and Annual Plans (2017-18 to 2018-19) Sectoral Outlays and
Priorities
VII. 8 Projections for Financial Requirements to meet targets set for 100.00Twelfth Five
Year Plan.
Chapter VIII Summary, Coclusions and Recommendations …………………….112-121
Economic Growth and Development
Fiscal Management and Decentralized Sectoral Planning
Human Development Status
Recommendations

List of Tables ..……………………………………………………………………....…122-123

References and Bibliography…………………………………………..……………..124-125
Annexures Pointers for Focused Group Discussion…………………..……………...126-129

***
 Preface
For Human Development, one of the determinants is Financial Allocations by Government.
Himachal Pradesh has diversity of population and area. In view of this diversity, allocations of funds are
made in such a proportion that the impact of each programme and scheme reaches upto each section of
the society. It has been the endeavor of the State as well as Central Government to address the needs of all
by launching new schemes after evaluating the ongoing schemes and programmes and enriching the
existing. The Government has always been prompt to uplift the vulnerable sections of the society.

In the present study, an attempt has been made to collect and analyze the financial allocations
made by the government under Plan and Non-Plan, Revenue and Capital besides other components of the
economy to get an insight about the resource allocations in Himachal Pradesh. It has been analyzed as to
which sector priority is given by government and how much increase on year to year basis is ensured.

On the basis of analysis of data, keeping in view the objectives of the study, conclusions have
been drawn and recommendations have been made on economic growth and development, fiscal
management and sectoral decentralized planning, and human development status. These conclusions and
recommendations are not derived opinion of Planning Department, H.P., but are based on the findings of
the study.

The team of the Planning Department has got this done from Datamation Consultants Pvt. Ltd.,
which collect and analyze the data besides report writing. United Nations Development Programme, New
Delhi has provided financial and technical assistance under “Human Development for Bridging
Inequalities Project”. The comments and suggestions of Prof. Balkrishan Bali have been incorporated,
who has done review of draft report, for improving quality of the study.

This study will help policy makers, academicians, departments, other agencies and civil society in
understanding the financial allocations of government for human development. This will also prove
beneficial to those who have direct concern with public finance.

Dr. Basu Sood,

Adviser(Planning),
Himachal Pradesh, Shimla-2.
 ACKNOWLEDGEMENTS

We are thankful to the Himachal Pradesh Human Development Research & Coordination Society
(HPHDRCS)-Govt. of Himachal Pradesh and the UNDP for assigning to Datamation prestigious
Research Study on “Himachal Pradesh Financial Allocation & Human Development”. We would like to
acknowledge cooperation, support and inputs we have received from various Line Departments of the
Himachal Pradesh Govt. in the State Capital as well as in the Districts. Their support and cooperation has
ensured successful completion of the Research Study.

We would like to thank first and foremost Hon. Chief Secretary –Govt. of Himachal Pradesh, Mr. Akshay
Sood-Adviser (Plg)-cum-State Coordinator Himachal Pradesh, Mr. Basu Sood, Ms. Ritu Mathur-
Programme Analyst-UNDP, Ms. Vandana Marwah-Nitii Aayaog-Govt. of India and other colleagues for
providing us necessary guidance and support.

The present report is an outcome of dedicated commitment of Datamation’s Research Professionals led by
Dr. Bupinder Zutshi- Professor, Centre for Study of Regional Development, School of Social Sciences,
Jawaharlal Nehru University, New Delhi. We place on record appreciation for his technical inputs and
guidance. We are also thankful to the Panchayat members, elected representatives as well as the
communities from all parts of the State who participated in the Focus Group Discussions that have been
integrated in the Report.

The assigned members of the team devoted themselves with complete sincerity in completing targeted
work by keeping up the momentum that involved movement in some very difficult terrains as well. Last
but not the least we would also like to thank our entire team of research professionals led by Mr. Lalit
Mehra – Senior Manager as well as our field staff and support team for their co-operation and team spirit.

Chetan Sharma – CEO

Datamation Consultants Pvt. Ltd.
 PLANNING DEPARTMENT TEAM

Dr. Basu Sood Adviser(Planning)

Mr. Ravinder Kumar Deputy Director(Planning)

Mr. Desh Raj Research Officer(Planning)

Mr. Sanjeev Sood Research Officer(Planning)

 Executive Summary
Himachal Pradesh being located in the lap of Himalayan mountain ranges is predominantly an agrarian
economy as more than 60% of population depends on agricultural and allied activities (horticulture,
livestock rearing and forestry). Although the state possesses resources conducive for hydro-power
development and other manufacturing activities but due to poor road connectivity and difficult terrain
conditions for development of railway network, the state has is least accessible for development of
manufacturing and service sector.
As per the survey conducted by Government of Himachal Pradesh a significant proportion of Scheduled
Castes and Scheduled Tribes population are still living below poverty line (24 percent of state population
in 2007).
Economic Growth and Development
The economic growth and development of Himachal Pradesh has been extra-ordinary as compared to its
neighbouring states with similar physical, topographical and socio-economic conditions. The state took
advantage of being ‘Special Category State’ status for transfer of funds from the tax collections of Central
government. The state receiving special funds and grants under different Central Government schemes,
converting their weakness into strengths by developing agricultural and horticulture activities, the main
resource of the economy. The state also focused on the development agenda for weaker sections dwelling
in the far- flung regions by utilizing the funds effectively through balance regional development and good
governance measures.
From the Seventh Plan period (1985- 90), the state recorded higher economic growth rate as compared to
the national average. This growth rate has been mainly achieved through commercialization of
agricultural and allied activities. The maintaining of high annual economic growth rate in Himachal
Pradesh is in sync with the national average. After 2000, the economy has shifted from agriculture sector
to industries and services. The Gross State Domestic Product and Net State Domestic Product growth rate
at factor cost at current prices increased at a much faster rate as compared to the national average.
The contribution of transport and communication, trade and financial and real estate sectors increased
significantly in the State’s Domestic and Net Product. The per capita Net Domestic Product for Himachal
Pradesh was much higher than the per capita Net Domestic Product for its neighbouring states as well as
for the national average. The per capita Net Domestic Product annual growth rate was impressive
(between 9-17%) during 2006-2010 period as compared to the national average. Such an impressive
growth rate can be attributed to adopting of planned balanced development policies especially targeting
the marginal communities across different geographical regions. Development expenditure for social
sector and for capital outlay in Himachal Pradesh was much higher than the national average during last
one decade especially during last 4 years.
Overall investment and per capita investment increased substantially in the state due to the creation of
income generation activities especially in horticulture, cultivation of fresh vegetable seeds and tourism
related activities. This was made possible due to budgetary provisions for the development of transport
and communication activities under five year plans and annual plans. This also increased employment
opportunities in the real estate services. Several Centrally sponsored programmes were implemented for
developing processes of human development especially higher investments in sanitation, housing and
education. Fortunately, most of other investments were spent on development programmes related to
improving the dominant agricultural and allied activities especially fruit cultivation. The annual
investment from 2007-08 onwards depicts substantial increase which also resulted in the significant

1
increase in the per capita annual investment.
Fiscal Management and Decentralized Sectoral Planning
One of the major challenges faced by Himachal Pradesh state is the fiscal management and creation of
financial capital for the developmental activities. The state requires to generate financial resources for
processes of economic and human development to broaden the budget base for Social and economic
development. The government is conscious of the precarious financial situation and thus all steps are
being taken to reduce unproductive expenditures, generate new resources, impose financial discipline and
accelerate development through promotion of tourism and horticulture and also enhance the incomes of
the state through sale of hydro-power, for which power projects have been executed expeditiously.
Although there is significant increase in the revenue receipts during last five years, however a significant
proportion of these revenue receipts are from ‘Grants from Central Government’ and other Centrally
Sponsored Programmes. The proportion of per capita expenditures under capital heads, indicate the
potential for developing investments for the processes of human development. The proportion of per
capita expenditures under revenue head hovers around 88-90 percent, while only 10-12 percent of this
expenditure is spent under capital expenditure head. Thus the state requires to improve the financial
management and generate financial resources for processes of economic and human development to
broaden the budget base for Social and economic development. Thus to improve the investments, the state
requires to improve the financial management and generate financial resources for processes of economic
and human development to broaden the budget base for Social and economic development.
Himachal Pradesh has formulated decentralized planning by engaging the District Planning Cells for the
preparation of schemes at the micro level ( Zila Panchayat and Panchayat Samitis level ) . Aim is to
monitor the process of the implementation of all the plan schemes being run by various departments soon
after the approval of the budget. These schemes include, Sectoral Decentralized Planning, Vikas Mein Jan
Sahyog , Vidhayak Keshetra Vikas Nidhi Yojna,, Mukhya Mantri Gram Path Yojna and the, Backward
Area Sub-Plan, Tribal Area Sub-Plan., Scheduled Caste Sub Plan, MPLAD Scheme, 20-Point
Programmes and special grants under 13th and 14th Finance Commission.
Several efforts have been made under the UNDP- Planning Commission programme to create essential
environment at the state level to specify annual budgets that could contribute development of human
quality and also provided all necessary infrastructural support to transform the quality of human
development. In this direction state planning departments were sensitized to allocate funds judiciously for
balanced regional development, covering various social and economic sub sectors across all regions. A
decentralized planning approach was adopted, where Panchayats (Lowest tier of administration) had the
power to identify the development activities which were in sync with their requirement and adequate fund
allocations were provided for such development programmes.
There has been substantial increase in the actual expenditures under Five-year plans and annual plans
from 2007 onwards for sub-sectors under the economic sector, social sector and other general sector
contributing towards the processes of human development. The actual expenditure increased substantially
for transport and communication, energy, sanitation and housing, education and health and family
welfare. This created conducive infrastructure for improving human development processes. About 40-45
percent expenditures were made under the social development sector (Sanitation and housing, education
and health and family welfare) during 9th and 10th Five-year plan period. Growth rate of expenditures was
impressive depicting more attention given to developing infrastructure for human development processes.
Although actual expenditures under for Social development sector increased during 11 th and 12th Five-
year plan but the percent to total expenditures for the social development sector decreased to 32-34% of

2
the total expenditures incurred for all sectors.
Strengthening economic based like investments in transport and communication, development
of small scale industry for employment generation especially small scale industries was visualized as
prime requirement to consolidate the human development processes in the 11th and 12th Five-year plan.
Thus the plan laid emphasis for investing the transport and communication sector, industries, energy
sector and rural development activities in addition to the Social development sector especially sanitation,
housing and education sub- sector.
Human Development Status
Himachal Pradesh scores reasonably high on the indices of Human Development in comparison to other
neighbouring states of the country. The demographic indicators like growth rate or population and
average size of households were exceptionally good for Himachal Pradesh. Thus economic growth and
development parameters are essentially reflected through declining population growth by decreasing both
births and death rate. This reflects advanced stage of demographic transition model. A satisfying picture
indicates that all the districts have achieved lower decennial population growth rate as compared to the
national average. The decrease in the population growth rate has also translated into less household size
population of 4.63 persons per household, which is one of the ideal conditions for promoting growth
generative policies for the population.
Himachal Pradesh has constantly recorded more balanced sex ratio since 1981, where as the national
average of sex ratio has been declining constantly, depicting Himachal Pradesh as one of the most
developed state in terms of gender justice and women’s empowerment. However unfortunately, Himachal
Pradesh has recorded lower sex ratio for (0-6 years) as compared to national average, which itself has
very low sex ratio. Keeping significance of increase in child sex ratio, 12th Five-year plan has fixed target
to increase the child sex ratio.
The educational achievements in terms of overall literacy rate, female literacy rate, gross and net
enrolment rates and drop-out rates at primary, middle and high/ higher secondary levels are impressive
compared to the national average and other neighbouring states.
The healthcare indicators like infant mortality rate, crude death rates, expectation of life at birth recorded
impressive improvement and these indicators were exceptionally good as compared to the national
average. The state has already reached replacement levels in terms of births as Total and General fertility
rates were below national level at both rural and urban places. Though institutional deliveries have
improved in the state, yet some far-flung regions require these services. Quality of health services
especially human resources availability of specialized staff in the state requires attention.
Women’s empowerment and participation in the state is impressive. In addition to the women being
elected in the reserved seats, even women have been elected for un-reserved seat in the Gram Panchayats
and women members outnumber men in the Gram Panchayats. Thus women have achieved empowerment
in real sense in Himachal Pradesh in governance issues. These results have clearly influenced gender
justice and favorable healthcare and educational indicators.
Himachal Pradesh was declared “Open Defecation Free” (ODF) state the country the second state, after
Sikkim to get this status. All the households in the state have toilet facility. Among bigger states,
Himachal Pradesh is the first state to become ODF. All 12 districts of the state have been covered as ODF
districts.
Food security in a hilly state with limited accessibility is essential to maintain the supplies of essential
food items during connectivity disruptions. The supplies are ensured t h r o u g h public distribution system
for providing basic food requirement like; rice, wheat, sugar supply. All these basic food requirements are

3
provided by “Fair Price Shops‟.
Natural Resource Management Himachal Pradesh is one of the ecologically sensitive State with 66.52
percent square kilometer of forest area. This is most preserved carbon free state of the country. The state
has used all possible abilities and prudence in managing the natural resources. Several measures have
been taken by government and people to maintain the pristine natural Himachal Pradesh has been the first
State in the country to have put a blanket ban the felling of green trees in the State. Alternative
arrangements have been provided to people to use LPG gas, electricity and other non pollution based
energy for cooking and lighting purposes.
The field surveys conducted among the selected Gram Panchayats, indicate that financial allocations were
directly made to the Gram Panchayats under several state and central government schemes. The
respondents indicated that several infrastructure development works were accomplished through these
developmental projects, which directly contributed towards human welfare measures.
The State has set 12th Five-year plan and subsequent annual plans targets to improve the processes of
human development especially for improving demographic indicators, educational services, healthcare
facilities and other infrastructure for improving overall quality of life. Majority of the set targets are in
sync with the requirements and are progressing well.
The study points out
 That special effort has been made to build capacity of State Planners for devising strategies to
prepare priorities for the economic and social sectors leading to overall human development. In
fact, separate fund allocations and actual expenditures stipulated under these sectors have been
operationalized during 10th, 11th, 12th Five- Year Plan and subsequent Annual Plans till 2018-19.
This strategy has definitely increased actual financial expenditure for the prioritized economic and
social sub sectors especially transport, energy, sanitation and housing, education and health care.
These actual expenditures have significantly contributed towards improving indicators of human
development in Himachal Pradesh.
 The capacity build among the state planners should have led to the availability of district level
disaggregated data on budget allocations and actual expenditures. This data would have helped to
measure the district wise outcomes of such allocations and actual expenditures on the human
development indicators. But unfortunately the state planners have not yet internalized the process
of providing district wise allocations and actual expenditures, hence measuring the impact of
financial expenditures on human development at district level is not possible. Thus the objective of
building capacities in making available disaggregated District level data has not been accomplished
 Effective human development actions in terms of improving demographic, social and economic
characteristics have been accomplished through financial allocations and actual expenditures on
human development sub-sectors. (like education sector, health sector, road connectivity, energy and
power sector, natural resource regeneration and women’s empowerment through Panchayati Raj.
These financial allocations and actual expenditures have reflected in decreased population growth
rate, reduction in average household population size, decline in death rates ( both crude and infant),
increase in expectation of life at birth (both men and women), reduction in General and Total
fertility rate, presence of overall balanced sex ratio, better literacy rates ( both men and women),
higher gross and net enrolment rates at all levels ( primary, middle, higher secondary and higher
education levels).

4
 Chapter-I: Introduction, Context and Objectives
I.1 Introduction
“Human development is a process of enlarging people’s choices—as they acquire more capabilities and
enjoy more opportunities to use those capabilities. But human development is also the objective, so it is
both a process and an outcome. Human development implies that people must use the process that shapes
their lives. In all this, economic growth is an important means to human development, but not the goal”. 1

In ancient Greece, Aristotle said: “Wealth is evidently not the good we are seeking, for it is merely useful
for the sake of something else.”

The development trajectories have witnessed several phases of alternative approaches. During late 60s-
early70s, more emphasis was laid on social development rather than capital accumulation and growth.
Efforts were made to initiate and provide the ‘basic needs’ like access to basic education, basic health
services, food, nutrition, water and sanitation to people dwelling in different regions. Fulfilment of these
basic needs was seen as a prerequisite for Human Development and Economic Growth. During the 80’s
the global development agenda largely focused on expanding growth, through various liberalisation
measures. The general perception was that liberalisation would generate economic growth, through the
power of market forces, which in turn would benefit the poorer sections of society through the “trickle-
down effect”.
Structural Adjustment Programmes (SAPs) were carried out in order to streamline and “adjust”
developing economies into the liberalisation agenda, but the approach to a large extent failed to tackle the
issue of poverty and inequalities, instead inequalities sharpened further in the developing countries. India
also adopted economic reforms like other developing countries during 8th Five-Year plan period (1992-
97). This was done based on the lessons learnt and experiences of the other nations during last four
decades. 2 Evidence demonstrated that the assumed “trickle-down effect” did not take place, and the
human costs of the SAP, became apparent. In addition, social ills such as crime, weakening of social
fabric, HIV/AIDS and pollution continued to spread despite high growth rates. 3
Addressing human development in India is of vital importance since a significant proportion of
population is still living below the poverty line, and income inequalities are rising by the day. It is
estimated that more than 800 million Indians live on less than Rs. 20 per day. 4 Disparities in income exist
across States, along rural/ urban lines and across social groups. “More than 60 percent of women are
chronically poor. The percentage of poor among Scheduled Tribes and Scheduled Castes remains high.
Many people are excluded from access to basic services. More than 296 million people are illiterate and

1 United Nations Development Report (UNDP) : “ Human Development Report 2015, Work for Human
Development, United Nations Development Programme 1 UN Plaza, New York, NY 10017, USA.
2
GOI, Planning Commission (1992-1997), 8th Five Year Plan, Vol. I.
3 Ibid, Section 1.1.6
4 Sen Gupta, A. (2007), Conditions of Work and Promo on of Livelihood in the Unorganized Sector, National
Commission for Enterprises in the Unorganized Sector, GOI.

5
233 million are suffering from malnutrition. Workforce participation for women is half of that for men,
and almost 96 percent of women work in the informal sector”.5
Since the adoption of Structural Adjustment Programme (SAP) for economic liberalization in early
nineties, Economic Growth (EG) in India has increased significantly. The average annual GDP growth
rate increased from 5.57 percent during 1991- 2000 to 7.59 percent during 2001-10 (calculations based on
World Development Indicator database). However, a corresponding enhancement in the Human
Development (HD) situation at the macro level has not been witnessed. It is observed from the UNDP
annual publication Human Development Report (HDR) for various years that India remained in the low
HD category throughout nineties, and managed to graduate to medium HD category only in 2002. In 2012
it secured a composite HDI score of 0.554, as compared to the corresponding figure of 0.439 in 1990.
India’s global HDI rank has also fallen from 132 in 1999 to 136 in 2012, although the number of
countries covered for HD assessment increased during this period (UNDP, 2014 Report). It again rose to
0.40 in 2017 and moved to 129th place in the global ranking(UNDP, 2018 Statistical Update).
The Mid-Term Statistical Appraisal of the MDGs showed that India lagged behind MDG achievement in
several targets relating to hunger, child and maternal mortality and reversal of malaria and other major
diseases.6 “The Eleventh Plan began in very favourable circumstances with the economy having grown at
the rate of 7.7% per year in the Tenth Plan period. However, far too many people also lack the basic
requirements for a decent living in terms of nutrition standards, basic health, access to education and, to
other public services such as water supply and sewerage. Disadvantaged groups, especially the Scheduled
Castes and Scheduled Tribes and the minorities have benefited the least. Studies have depicted that
regional imbalances have emerged across and even within States.” 7
Several studies have depicted a positive relationship between human development (HD) and economic
growth (EG) that exists in a mutually benefiting form, implying that while higher growth path augments
HD formation in a country, the latter also contributes positively in propelling the former. (Srinivasan,
1994; Mukherjee; Ghosh, 2006 and Chakraborty, 2011). Many European and other developed countries
have experienced a situation of high Economic Growth (EG) and high Human Development (HD)
conditions and alternatively other under-developed countries like African states, Mexico and some South
Asian countries experienced low (EG) and low (HD) settings. (Ranis, 2004; Ranis et al., 2000; Mayer-
Foulkes, 2007).
One of the basic conditions for Human Development (HD) is development of the people through building
human capabilities of the people by improving their living conditions and increasing their active
participation in the processes that shape their lives. It encompasses a broader and multifaceted approach
that includes; the human resource development through appropriate and effectively monitored financing,
along with the basic needs for developing human skills as well as creating conducive conditions for
human welfare approach.8
Several factors influence the two-way causality between EG and HD depending upon, region’s resources
and their utilization, developing human capabilities and governance issues. The study of (Ramirez et al.,
1998) has depicted that public expenditure on social services and female education strengthen the
relationship between HD and EG, similarly investment rate and income distribution augment the
relationship between EG and HD. Other influencing factors for EG-HD relationship are existing

5 UNDP (2007), UNDP Country Programme for India 2008-2012; UNDP (2006), India UNDAF 2008-2012.
6 GOI (2010), Millennium Development Goals – India Country Report 2009, Mid Term Statistical Appraisal.
7 GOI, Planning Commission (2007-2012), 11th Five Year Plan, Vol. I, Preface.
8
Ibid;

6
governance mechanism and quality of institutions (Amin, undated). Some studies show significant
influence of Governance on HD (Joshi, 2007). There are several instances that depict higher initial level
of HD also augment governance mechanisms (e.g. lesser corruption) and indirectly fuel EG (Costantini
and Salvatore, 2008). Finally, in addition to direct effects of EG, social capital formation through
developmental efforts has augmented HD in European countries (Christoforou, 2006).
Appropriate and monitored financing for processes contributing to human development is a very critical
aspect of ensuring that public policies become concrete realities and that the deprived and other
vulnerable sub-populations are supported by the state, enabling them to become empowered beings,
capable of realising their inherent potential in a participatory and democratic context. The best strategy
for human development is to ensure, through strong policies, accelerated generation and better
distribution of primary incomes. In addition, delivery of government services related to social
infrastructure (school, health clinic, nutrition and food subsidies) as well as physical infrastructure (roads,
electricity and housing) can help the poor to bridge the gap resulted from meagre incomes.
However, despite planned policies of state governments, adequate funds are not provided for the social
and infrastructure development sectors. There are several instances that allocated budgets for social and
infrastructure sectors are not even spent and appropriately used. Even sometimes, when budgets are
adequate, they may not target the core sectors of human development (e.g. primary healthcare, elementary
education and livelihood upliftment) and instead focus, on other areas which do not necessarily convert
into growth as well as development stimulus. Improving the human development indicators of the state
requires considerable augmentation of investment, monitoring of investments in both physical and human
capital as well as improvement in the productivity of the capital invested through good governance. Any
analysis of the task of financing human development and the options for enhancing the investment to
desirable levels must take into account the condition of the State’s finances and the constraints that they
impose on financing human development.

I.2 Planning Commission and UNDP Initiatives for Strengthening State Plans for Human
Development
In view of the above, strengthening of state plans for human development has attained significance, since
2004. To formalise this approach, the then Planning Commission and United Nations Development
Programme (UNDP) project (2004-09) aimed beyond the mere preparation on of Human Development
Reports (HDRs) for the States to concentrate developing capacities of States to operationalise (HD) and
make it an integral tool in the state and district planning processes. Under this project, State planning
processes and dialogue were intended to be strengthened to focus more on human development concerns.
The project follows-up on the previous State HDR project by incorporating some of the key concerns
raised in the State Human Development Reports (HDRs)
The issue has gained importance for a number of reasons.
 First, the fiscal health of the State had posed serious difficulties in releasing resources for
investment in human capital.
 Second, compression of expenditures as a part of the fiscal adjustment strategy, and competing
claims on fiscal resources at the State level, have underlined the need for prioritising expenditures
in favour of human development.
 Third, the Millennium Development Goals (MDGs), which, in some sense, were reflected in the
targets set for the 12th Five-Year Plan, could not be achieved due to the failure to augment social
sector expenditures appreciably. The State also could not achieve a significant increase in the

7
 productivity of social sector spending by improving the delivery systems and by harnessing
private investments to complement public spending.
 Finally, significant inter-district variations in human development and the skewed distribution of
historically given expenditures, in favour of districts with higher human development indicators,
makes it necessary to introduce strategic changes in resource allocation. At the same time, poor
efficiency of expenditure in districts with a low human development index necessitates
institutional changes to improve the delivery systems to achieve the SDGs by focusing on
districts with significant shortfalls in HDIs.
In view of the above, decentralized budget allocations and monitoring of actual performance of financial
budgeting provided, through both state and centrally sponsored programmes has gained importance for a
number of reasons. The importance of public expenditure in the process of human development is well
recognised. The extent of public expenditure on human development has been measured in two ways.
First, based on UNDP’s Human Development Reports for States of India, which report the ratios, to
indicate the priority assigned by States to expenditure on human development. Major results from these
reports depict;
 Public expenditure ratio defined as the total budgetary expenditure as proportion of GDP
 Social Allocation Ratio (SAR), defined as the share of budgetary expenditure on the social sector
in the total budgetary expenditure
 Social Priority Ratio (SPR), defined as the proportion of social sector expenditure that is spent on
human priority areas, and
 Human expenditure ratio (HER), which is a product of the first three ratios and measures the
budgetary expenditures in human priority areas as a proportion of GDP.
In addition to these ratios, studies have also used trends in per capita expenditure on social and human
priority sectors to measure public spending for human development. It is important to examine trends in
per capita expenditure along with the UNDP ratios as the UNDP ratios measures the human development
expenditure in relation to income and do not indicate the absolute level of expenditure on human
development in any state.
The Planning Commission- UNDP project for strengthening State Plans for Human Development started
with eight partner States, which had already prepared State HDRs (Himachal Pradesh, Karnataka,
Madhya Pradesh, Maharashtra, Rajasthan, Sikkim, Tamil Nadu and West Bengal). The project focussed
the following three main components:
 Deepening of human development analysis through strengthening statistical systems and capacity
building of State planners for human development, including building capacities in disaggregated
District level data collection and analysis.
 Strengthening advocacy through dissemination and outreach of SHDRs to ensure that their
messages are internalized by planners and implementers of development programmes, and;
 Effective human development action by contributing to informed decision and selection of high
impact human development strategy, by identification of issues and options for financing HD in
States.
The progress made by the states supported by Planning Commission-UNDP project had been uneven and
varied. 9 However most important outcome of the initiative has been Institutionalizing of Human

9
UNDP and Planning Commission-GOI, October 2010, Human Development in India : Analysis to Action: Publica
on based on reports from partner State governments; compiled and edited by Pia Lindstrom.

8
Development oriented planning and analysis of financial linkages with human development parameters at
state and district levels. All the Project States have included a chapter on human development in their
annual plans and policy documents such as Annual Economic Surveys. 10
“District level HDRs as a tool for district planning were prepared for some districts by the partner States.
The State also prepared HDRs for three districts viz; Kangra, Mandi and Shimla. Gender budgeting was
introduced in specific departments in some of the partner State Governments, and human development
indicators are being used to decide social sector allocation”. 11
Even mainstreaming of human development in plans and policies has been made possible through the
core strategy of developing capacities of State and district planners as well as other officials from the
State Governments at the individual, institutional and enabling environment level .12
I.3 Study Area Context
Himachal Pradesh scores reasonably high on the indices of Human Development in comparison to other
hilly and developed states of the country. The educational achievements, in particular, are impressive;
health indicators are generally better than those for the country as a whole and the State has been able to
reduce the poverty levels substantially. The efforts on the front of promotion of gender equity have met a
considerable success in Himachal Pradesh. One of the factors which have contributed to the achievements
made in the field of human development in Himachal Pradesh has been consistently high public
expenditure on human development during the last two and a half decades.
The available information indicates that the State’s development is almost entirely driven by the public
sector investment. Without going into the issue of desirability of greater private sector involvement and
contribution to development in Himachal Pradesh, it can safely be inferred that the health of State’s
finances has considerable influence on the path of development of the State. Himachal Pradesh by virtue
of being a Special Category State,13 has to consistently rely on the Central transfers to keep its finances
stable and enabling it to meet the resource requirement for achieving higher levels of human development

10
Ibid.
11
Ibid, pp 11 of the Report.
12
Ibid, pp 11 of the report.
13
The Constitution does not include any provision for categorisation of any State in India as a Special
Category Status (SCS) State. But, recognising that some regions in the country were historically
disadvantaged in contrast to others, Central plan assistance to SCS States has been granted in the past by the
erstwhile Planning Commission body, National Development Council (NDC). The NDC granted this status
based on a number of features of the States which included: hilly and difficult terrain, low population density
or the presence of sizeable tribal population, strategic location along international borders, economic and
infrastructural backwardness and non-viable nature of State finances. The SCS States used to receive block
grants based on the Gadgil-Mukherjee formula, which effectively allowed for nearly 30 per cent of the Total
Central Assistance to be transferred to SCS States as late as 2009-10. Following the constitution of the NITI
Aayog (after the dissolution of the Planning Commission) and the recommendations of the Fourteenth
Finance Commission (FFC), Central plan assistance to SCS States has been subsumed in an increased
devolution of the divisible pool to all States (from 32% in the 13th FC recommendations to 42%) and do not
any longer appear in plan expenditure. The FFC also recommended variables such as “forest cover” to be
included in devolution, with a weightage of 7.5 in the criteria and which could benefit north-eastern States
that were previously given SCS assistance. Besides, assistance to Centrally Sponsored Schemes for SCS States
was given with 90% Central share and 10% State share.

9
in the State. Achieving the targets set in the SDGs framework for Himachal Pradesh, of which a large
number of indicators can be termed as those directly pertaining to human development is the real
challenge with the State Government besides maintaining the level of achievements already made by the
States in the field of human development. The study is one of the steps in meeting the objectives of
Human Development for Inclusive and Sustainable Green Growth in Himachal Pradesh.
The present study attempts to analyse the relationship between financial allocations, actual expenditures
and their management with the outcomes of processes of human development in Himachal Pradesh.
Himachal Pradesh is one of the most dynamic northern hill States of India, situated in the Himalayan
mountain ranges. After the planned development initiatives, the State scores significantly high on the
indicators of human development. The State possesses tremendous resources in terms of forests, fruits,
minerals, tourism potential and scope for hydro-power development.
I.4 Aims and Objectives
 To undertake analysis of financial allocations and expenditure by various Government
Departments directly engaged in the process of Human Development in Himachal Pradesh.
 To examine if the expenditure incurred by the Departments has actually translated into the desired
outcomes contributing to further the process of human development in Himachal Pradesh.
 To make projections on the financial requirements during the next five years for meeting the
human development targets under the SDGs framework to be achieved by 2030.
I.5 Research Questions
 Whether Capacity building of State Planners for human development, including building
capacities in making available disaggregated District level data has been accomplished?
 Whether advocacy through dissemination and outreach of SHDRs is ensured to internalize public
expenditure for human development and social priority sectors by planners and implementers for
identified development programmes.
 Whether allocations and expenditures by various government departments associated with human
development has actually translated into desired outcomes contributing to accelerate the process
of human development.
 Whether effective human development actions through informed decisions and human
development strategies have been incorporated in the financing framework in Himachal Pradesh
I.6 Framework of Study
 The study has undertaken an in-depth analysis of the expenditure incurred by the major
Government Departments of Himachal Pradesh directly responsible for implementing the
programmes aimed at enhancing the levels of human development in relation to the budgetary
outlays during the last twenty five years.
 It has also examined how public expenditure has translated into the desired outcomes responsible
for achieving high levels of human development in the Himachal Pradesh during the reference
period.
 An assessment has been made to find the extent of presence of externally Aided Projects in the
provision of services in Himachal Pradesh for improving the quality of life.
 The study also attempts to make recommendation for achieving the targets related to various
human development indices set during the Twelfth Five Year Plan of Himachal Pradesh
I.7 Methodology
Data related to economic development status, expenditures incurred under Five-year Plans and extend of
decentralized planning programmes in the state of Himachal Pradesh have been collected from secondary
10
sources of information. The raw data collected from the secondary sources were tabulated after using
several statistical techniques to analyze the raw data. The methods applied include
 Growth Rates
 Percentage distribution
 Standard Deviation and Co-efficient of Variations
I.8 Data Sources
The following sources of secondary data were collected
 NITI AYOG, Government of India, New Delhi
 Planning Department, Government of Himachal Pradesh, the following reports were exhaustively
used for raw data and literature review.
o Brief Fact 2018
o Budget Document 2014-15, 2015-16 and 2016-17
o Economic Indicators – 2014
o Gender Statistics- 2014
o Himachal Pradesh Figures 2014
o Statistical Abstract 2014-15
o 6th Economic Census 2014
o Budget 2019-20
o Man/ Woman Himachal Pradesh 2015
o Finance Commission Documents
o Socio-Economic Indicators 2014-15
o Gender Statistics 2012
o Census of India, Government of India
o Various Annual Plan Documents, Himachal Pradesh
o Various Demands for Grants, Himachal Pradesh

I.9 Primary Survey of Focused Groups

In addition to the secondary data collected from the above sources, an in-depth primary survey was
conducted, across selected districts to seek information from the FGDs. The methodology adopted for the
selection of districts/ blocks/gram panchayats for the FGDs as follows.
Sample Survey Size
The details of sample survey are given in Chapter-V
Districts: Six (6)
Gram Panchayats: 36 (6 from each District)
Focused Groups: 144 (4 from each Gram Panchayat)

Selection of Districts
 2 Districts with high Actual Expenditures (Average of 2013- 2015) on Human Development
Sectors – Education, Health, Infrastructure, Community Participation, Marginal Community
Budget expenses (SC/ ST/ Backward)
 2 Districts with Medium Actual Expenditures (Average of 2013- 2015) on Human Development
Sectors – Education, Health, Infrastructure, Community Participation, Marginal Community
Budget expenses (SC/ ST/ Backward)

11
  2 Districts with Medium Actual Expenditures (Average of 2013- 2015) on Human Development
Sectors – Education, Health, Infrastructure, Community Participation, Marginal Community
Budget expenses (SC/ ST/ Backward)

Selection of Gram Panchayats from each District

 1 Gram Panchayats randomly selected having high accessibility
 1 Gram Panchayats randomly selected having medium accessibility
 1 Gram Panchayats randomly selected having Low accessibility
 1 Gram Panchayats randomly selected having high General Population
 1 Gram Panchayats randomly selected having high SC Population
 1 Gram Panchayats randomly selected having high ST Population
Selection of Focused Groups from Each Gram Panchayat
 Women aged 18-54 years ( 10-12 members ) to be selected randomly
 Adults (Male) aged 18-65 ( 10-12 Members ) to be selected randomly
 Children (both boys 6 and girls 6) to be selected randomly
 All members of Panchayat (including males/ female, General/ SC/ ST/ OBC) 10-12 members
Information was collected from the following four different Focused Groups from the selected Gram
Panchayats.
 Panchayat Members ( both men and women members) ( Refer Annexure I)
 Women aged 18-54 Years (Refer Annexure-II)
 Adults respondents from the Gram Panchayat aged 18-65 (Refer Annexure-III
 Children aged (6-18 years both boys and girls) (Refer Annexure-III)

12
 Chapter-II: Regional Profile, Economic Growth and Financial
Allocations

II.1 Himachal Pradesh – A Brief Profile

Himachal Pradesh state is located between Latitude 30o 22’40” N to 33o 12’40” N and Longitude 75o
45’55” E to 79o 04’20” E. It is a mountainous region with altitudes ranging from 350 metres to 6,975
metres above the mean sea level.14 Wide differences in physical topography and considerable variations in
climate are found among different sub-regions of the state. Himachal Pradesh is physiographically, part of
Himalayan mountain ranges and from south to north the state can be divided into three topographical
zones with significant variations in altitude levels, slope gradients and climatic conditions.
 The Shivaliks or Outer Himalayas – It consists of lower hills of Kangra, Hamirpur, Una, Bilaspur
and the lower parts of Mandi, Solan and Sirmaur districts. The region is in close proximity with
the plains of India, thus having better communication and accessibility as compared to other
regions of Himachal Pradesh. The altitude of this region varies from 350-1500 metres above
mean sea level. The region is made of consolidated deposits, which experiences regular
deforestation due to high rate of soil erosion. The region is suitable for cultivation of maize,
wheat, ginger, sugarcane, paddy, citrus fruits and table potatoes.
 Inner Himalayas or Mid-mountains- The region consists of some parts of Sirmour, Mandi,
Shimla, Kullu and Chamba districts. The altitude of this region varies from 1500 metres to 4500
metres. The area is suitable for temperate fruits and the region has tremendous potential for
tourism development. Several hydro-power projects have been developed in this region. The
region has difficult terrain, hence it has poor communication and accessibility.
 Alpine zone or Greater Himalayas consist of Chamba, Kinnaur, Kullu, Lahaul-Spiti and parts of
Shimla districts with higher altitude ranges. The region has remote location, with difficult terrain
and severe winter. The region lacks accessibility and other infrastructure services. Other
constraints associated are short growing and less productive season and extreme winter
conditions.
Himachal Pradesh with an area of 55,673 sq. km. is one of the smaller states of India. Its area accounts for
1.69 per cent of the total area of the country. The State recorded a population of 6,864,602 in 2011,
constituting 0.57 per cent population of the country. It ranked 17th in terms of area and 21st in terms of
population among the States and Union Territories of India. The State being located in the lap of
Himalayas has recorded one of the lowest density of population located in the North-West Himalayas
(123 persons per square kilometre as compared to 382 for the country as per 2011 Census)

14
Human Development Report 2001, Himachal Pradesh
13
 Map No.II.1

Himachal Pradesh has recorded positive basic demographic indicators during last two decades, depicting
social and economic development in the state. The state recorded lowest decennial population growth rate
during last three decades (1981-2011) as compared to national average. Himachal Pradesh State recorded
decadal population growth rate of 12.90 per cent during 2001-2011 which was lowest among all the other
States of India except for Kerala, Goa, Andhra Pradesh and Nagaland. The lowest population growth rate
is recorded alongwith lowest mortality and fertility rates. This depicts general improvement of social-
economic conditions in the state, leading to achieving 4th stage of demographic transition model. (Refer
Table No II. 1.)
Sex ratio, another significant indicator of social development also far better in Himachal Pradesh as the
State recorded higher sex ratio as compared to many Northern States of India as well as compared to
national average. This trend has been significant in Himachal Pradesh as several other adjacent states like
Punjab and Haryana have recorded declining sex ratio during last two decades.
Himachal Pradesh is predominantly agricultural society, as more than 60 per cent population depends on

14
agriculture and allied activities (horticulture, forestry and livestock) for their livelihood. The topography
being mostly hilly, the type of cultivation is terraced and close to 80 percent of all holdings fall in the
category of small and marginal farmers.15 There is a preponderance of small land holdings in the state.
According to 2010-11 Agricultural Census, the holdings of less than one hectare accounted for 69.8 per
cent of the total holdings. Only 75 per cent of the total reporting area is available for cultivation. Out of
this area, ‘net area sown’ and ‘current fallows’ account for only 13 per cent. Agriculture is beset with the
disadvantage of small holdings, as there is hardly any scope for mechanized farming due to
preponderance of small holdings and terraced fields.
However due to ideal climate for fruit cultivation, horticulture and vegetable growing (seasonal as well as
off-season), a well- diversified farm economy has been developed rapidly during the past three decades of
planned development initiatives. The farmers of Himachal Pradesh are constantly endeavouring to exploit
fully the agricultural potential of the State to increase food production and also to supplement the income
by producing quality cash crops. Wheat, barley, paddy and maize are the important cereal crops under
cultivation. Seed potato, ginger and off-season vegetables are the other important cash crops. There is
potential for the development of crops like hops, mushrooms, olives, saffron and zeera in the state.
Horticulture has developed over the years and apple is the main horticulture crop, which has tremendous
market in rest of India. Bulks of apples are produced in the districts of Shimla, Kullu, Mandi, Kinnaur and
Chamba.
Himachal Pradesh has a vast hydro electric potential which is estimated at 23,000 MW. 16 However, the
possibility of utilizing this potential depends primarily on the development of other infrastructure and
better accessibility. It is not possible to provide appreciable length of railways in these hilly and
mountainous areas, due to difficult topography and steep slope gradients. Thus, the road network
constitutes to be the very life line of Himachal’s economy.
Himachal Pradesh has made significant achievements in the field of industrialization especially small
scale handicraft and manufacturing activities. The process of industrialization in the State started during
the eighties and gained momentum during the last one decade. Up to March, 2016, there were 505
medium and large scale industries and about 40,150 small scale industries with a total investment of
19,043.51 crore in the State. These industries provide employment to about 2.86 lakh people. 17
However due to poor accessibility and least conducive conditions for developing large scale
manufacturing activities the state recorded the lowest urbanization rate as compared to the national
average (only 10.03 per cent urban population exists in the State) and the State continues to be
predominantly dependent on agricultural and allied activities. Only few urban centres are found in the
State. Urbanization rate is more or less same during last two decades. Shimla is the only class I town in
the State. The districts of Lahaul-Spiti and Kinnaur located in the higher Himalayas belt have no urban
centres due to extremely poor accessibility. Although there is good scope for developing service sector
especially In IT Sector, yet, not many development projects have been initiated.
The state has significant proportion of Scheduled Castes population (25.19 percent in 2011 as compared
to 16.60 percent for the country) and also has concentrated Scheduled Tribes population in few regions,
which require special attention for their social and economic development and upliftment.

15
Himachal Pradesh, Planning Department, Draft 12th Five Year Plan 2012-17
16
Himachal Pradesh, Planning Department, Draft 12th Five Year Plan 2012-17
17
Himachal Pradesh, Planning Department, Draft 12th Five Year Plan 2012-17

15
A survey was conducted by the state government during 2002-07 among 1,182,926 families across all
districts. The survey identified 282, 370 families as below poverty line families based on the identified
indicators selected for the identification of such families. These identified poor families account for
23.87 per cent of total surveyed families. Chamba, Lahaul-Spiti and Shimla districts recorded high
percentage of the identified poor families in the state. (Refer Table II.2)
These marginalised groups of population require specific and targeted programmes for their upliftment,
which the state government has been enduring during last two decades of planned development.

16
 Table No II.1
Himachal Pradesh: Some Demographic Indicators
Indicator Himachal Pradesh India
Area in Square Kilometres (2011) 55,673 3,287,469
Population (Both Males and Females) 6,864,602 1,210,854,977
Males 3,481,873 623,270,258
Females 3,382,729 587,584,719
Density of Population ( Per Sq. Kms)
1971 62 177
1981 77 216
1991 93
2001 109 325
2011 123 382
Population Growth Rate
1971-1981 23.71 24.66
1981-1991 20.79 23.87
1991-2001 17.54 21.54
2001-2011 12.90 17.70
Sex Ratio
1971 958 930
1981 973 934
1991 976 927
2001 968 933
2011 972 940
Percent Urban Population
1971 6.99
1981 7.61
1991 8.69
2001 9.80 27.82
2011 10.03 31.16
Percent Scheduled Caste Population
1971 22.24
1981 24.62
1991 25.34
2001 24.72 16.20
2011 25.19 16.60
Percent Scheduled Tribe Population
1971 4.09
1981 4.61
1991 4.22
2001 4.02 8.20
2011 5.71 8.60

Source: Census of Himachal Pradesh reports 1971-2011

17
 Table No II.2
Himachal Pradesh: Scheduled Castes, Scheduled Tribes and Population, Below Poverty Line

District Per Cent Per Cent Survey of Families Per Cent

S.C. S.T. Poor Families below Poverty Families below
Population Population 2002-07 Line poverty line

Bilaspur 25.92 2.80 75,051 17,337 23.10

Chamba 21.52 26.10 85,676 46,393 54.15
Hamirpur 24.02 0.67 95,795 19,514 20.37
Kangra 21.15 5.60 289,185 63,250 21.87
Kinnaur 17.53 57.95 13,255 2,824 21.31
Kullu 28.01 3.84 69,388 11,267 16.24
Lahaul & 7.08 81.44 5,517 2,400 43.50
Spiti
Mandi 29.38 1.28 206,096 41,339 20.06
Shimla 26.51 1.08 108,999 31,682 29.07
Sirmaur 30.34 2.13 70,439 13,695 19.44
Solan 28.35 4.42 73,733 17,478 23.70
Una 22.16 1.65 89,792 15,191 16.92
H.P. 25.19 5.71 1,182,926 282,370 23.87
Source: Census of India SC/ ST Tables and Himachal Pradesh, Rural Development Department
II.2 Himachal Pradesh – Economy and Economic Development

This section explains the economic development trajectories of the State as depicted by indicators, such as
income-growth, and structural composition of State’s gross and net domestic product and the priorities of
plan outlays under different economic and social sectors during last the two decades of planned
development. Himachal Pradesh being located in the lap of Himalayas is completely dependent on
Central funds for development purposes. The State had been designated as Special Category State right
after its creation in 1971 for receiving extra grants from the central government. The Fourteenth Finance
Commission has also recommended to continue the grant based funding mechanisms to the Himalayan
States of the Country. The State started its economic growth and development journey with weak and
disadvantaged economy, under developed human resource skills and weak institutional base. Major
obstacles were poor communication network and inadequate road and railway accessibility.
Himachal’s surfaced road-length per one lakh population was only (8.5 Km.) in 1950-51 which was the
lowest in India. Similarly per capita consumption of electricity in 1948 was 0.99 kwh as against the
national average of 17.8 kwh 18 . Human resources were exceptionally poor due to less accessible
education system and poor health services. The formation of Himachal Pradesh as integral part of India
after 1947 ushered a new era of development for improving their economic and social conditions. 19

18
Sharma, L.R. (1987), The Economy of Himachal Pradesh: Growth and Structure ( A Study in Development
Performance), Mittal Publication, Delhi.
19
Singh, M.G. (1985), Social Cultural Economic Survey of Himachal Pradesh, Minerva Book House, Shimla

18
Himachal Pradesh took advantage of being Special Category State for receiving special funds and grants
under different Central Government schemes and the State aimed at converting their weakness into
strengths by developing agricultural and horticulture activities, the main resource of the economy. The
economy of Himachal Pradesh is dependent upon the agriculture and horticulture and any fluctuation in
the production impacts the economy at large. Owing to such situation, the State of Himachal Pradesh has
not only emerged as a model of development among the hill areas in the country, but has also emerged as
a pioneer in various fields of development. The competence and value systems with civilization heritage,
trade liberalisation and other measures to increase the competitive environment in the economy has lead
to robust performance of the State. The economy of the State has achieved a growth rate of 7.3 percent in
the financial year 2018-19.
The state also focussed on the development agenda for weaker sections dwelling in the far-flung regions
by utilizing the funds effectively through balanced regional development and good governance measures.
The growth of the State’s economy has been extra-ordinary as compared to other neighbouring states with
similar physical, topographical, social and economic conditions. (Refer Table No II.3) During the First
Five Year Plan (1951-56), the state grew at an annual growth rate of 1.6 per cent as compared to the
national average of 3.6 per cent. Up to the Third Plan, period, the growth rate was slightly higher for
Himachal Pradesh as compared to the national average. However, from Fourth Plan period to Sixth Plan
period (1969-1985), Himachal Pradesh was lagging behind in the economic growth rate as compared to
the national average, because the state required heavy investments in infrastructure during this period,
which could not be converted into growth, due to time lag for trickling down the benefits at grassroots
level. The growth rate till the Sixth Plan period was half as compared to the national average. From the
Seventh Plan period (1985-90), the State had recorded higher economic growth rate as compared to the
national average and the state has maintained the growth rate in spite of its weakness in the development
of manufacturing sector due to geographical disadvantages, difficult topography and inaccessibility in
major areas of Himachal Pradesh. This growth rate has been mainly achieved through commercialization
of agricultural and allied activities, which is highly commendable as, in case of other States agriculture
has been the weakest in terms of growth scenario during last one and a half decade. The maintaining of
high annual economic growth rate in Himachal Pradesh is in sync with the national average. This has
been made possible due to effective balanced planning policies pursued by the State Government and
attending the development requirements of isolated and inaccessible ethnic and cultural groups dwelling
in human settlement located in far flung regions through targeted development approach.

19
 Table No.II.3
Comparative Growth Rate of H.P. and National Economy recorded during Five Year and
Annual Plan Periods

Plan Period Average Annual Growth Rate of

Economy At Constant Prices
Himachal Pradesh All India
1. 2. 3.
First Plan (1951-56) (+) 1.6 (+) 3.6
Second Plan (1956-61) (+) 4.4 (+) 4.1
Third Plan (1961-66) (+) 3.0 (+) 2.4
Fourth Plan (1969-74) (+) 3.0 (+) 3.4
Fifth Plan (1974-78) (+) 4.6 (+) 5.2
Annual Plans (1978-79) to (1979-80) (-) 3.6 (+) 0.2
Sixth Plan (1980-85) (+) 3.0 (+) 5.3
Seventh Plan (1985-90) (+) 8.8 (+) 6.0
Eighth Plan (1992-97) (+) 6.3 (+) 6.2
Ninth Plan (1997-02) (+) 6.4 (+) 5.6
Tenth Plan (2002-07) (+) 7.6 (+) 7.8
Annual Plan (2007-08) (+) 8.5 (+) 9.3
Annual Plan (2008-09) (+) 7.4 (+) 6.7
Annual Plan (2009-10) (+) 8.1 (+) 8.6
Annual Plan (2010-11) (+) 8.8 (+) 8.9
Annual Plan (2011-12) (+) 7.6 (+)6.7
Annual Plan (2012-13) (+) 6.4 (+)5.5
Annual Plan (2013-14) (+) 7.1 (+)6.4
Annual Plan (2014-15) (+) 7.5 (+)7.4
Annual Plan (2015-16) (+)8.1 (+)8.2
Annual Plan (2016-17) (+)7.0 (+)7.1
Annual Plan (2017-18) (+)6.5 (+)6.5
Annual Plan (2018-19) (+)7.3 (+)6.8
Source: Planning Department, Himachal Pradesh

A comparison of the economic growth during the earlier years of the neighbouring States with similar
geographical conditions like for Jammu & Kashmir and even with better conducive geographical
conditions of Punjab and Haryana indicated that Himachal Pradesh economy grew relatively at must
faster pace during the decade of 90s. (Refer Table II. 4)

20
 Table No. II. 4
Trends in the Growth in Gross Domestic Product in Surrounding States of Himachal Pradesh

States 1980-81 to 1990-91 1993-94 to 1998- 99

Himachal Pradesh 5.0 6.7
Haryana 6.2 5.8
Punjab 5.4 5.0
Jammu & Kashmir 2.2 4.7
India 5.6 6.8
Source: Tenth Five Year Plan, Planning Commission, GoI, New Delhi

5
Himachal Pradesh
4 Haryana
Punjab
3
Jammu and Kashmir
2

0
1980-81 to 1990-91 1993-94 to 1998-99

II.3 Sector wise Contribution to Economy

As already stated that the economic activities in the State are predominantly governed by Primary
Sector(agriculture, horticulture and its allied activities). This was also reflected by the significant
contribution of primary sector in the economy during 1970-80s. However, after 2000, the economy has
shown a shift from agriculture sector to industries and services as the percentage contribution of
agriculture and allied sectors in total State Domestic Product (SDP) has declined from 58.56 percent in
1970-71 to 15.39 percent in 2017-18. On the other hand, the contribution of secondary sector to SDP has
increased from 16.73 per cent in 1970-71 to 40.09 per cent in 2017-18. Service sector has also increased
significantly during the same period from 24.71 per cent in 1970-71 to 44.52 percent in 2017-18. (Refer
Table No. II. 5)

21
 Table No. II. 5
Percentage Contribution of Sectoral State Domestic Product at Current Prices

1970-71

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19
Sectors
Sl. No

1 Primary 58.56 23.15 23.22 20.05 19.02 19.15 17.16 17.04 17.08 15.68 16.21 16.01 15.39 13.44
.
2 Secondary 16.73 39.95 39.77 43.02 42.91 42.19 43.81 43.01 43.02 42.76 42.28 39.96 40.09 43.60
.
3 Tertiary 24.71 36.90 37.01 36.93 38.07 38.66 39.03 39.95 39.90 41.56 41.51 44.03 44.52 42.97
.
Source: Government of Himachal Pradesh, Economics & Statistics Department
II.4 Sectoral Annual Growth Rate
The State maintained high annual growth rate of 7-8 per cent, in spite of significant variations in the
growth pattern in the agricultural sector- the main strength of Himachal Pradesh state. In fact, agricultural
sector recorded negative growth during 2008-10 and in 2011-12 due to poor monsoon and prevailing
drought conditions. In spite of this negative growth of agricultural sector for these specified periods,
economy of Himachal Pradesh grew in sync with national economy. This was made possible through
diversification of the economy, especially developing service sector as well as industrial sector focusing
on small scale handicraft and manufacturing activities. (Refer Table No. II.6)

22
 Table No. II. 6
ANNUAL GROWTH RATE OF GROSS DOMESTIC PRODUCT (At Constant Prices)
(Percent)
Year Agriculture Manufacturing Transport Banking & Public Gross
forestry & , construction, Communication insurance real administration domestic
logging electricity, gas & Trade estate & owner- , defence & product
fishing, & water ship of dwelling services at factor
mining & supply business services cost
quarrying
1 2 3 4 5 6 7
1999-2000 - - - - - -
2000-01 15.6 5.3 10.5 -2.6 -1.5 6.3
2001-02 8.5 4.7 8.3 6.7 -1.5 5.2
2002-03 2.2 8.1 5.1 2.5 4.2 5.1
2003-04 11.6 6.4 7.8 15.5 3.0 8.1
2004-05 - - - - - -
2005-06 6.1 8.5 10.2 10.8 9.3 8.4
2006-07 -0.6 13.6 6.8 15.9 12.9 9.1
2007-08 8.9 9.3 10.1 10.7 3.4 8.5
2009-10 -10.2 13.6 11.2 15.8 11.9 8.1
2010-11 18.2 3.9 4.2 17.7 11.6 8.8
2011-12 - - - - - -
2012-13 6.8 5.4 6.1 10.1 8.4 6.4
2013-14 9.7 6.8 13.6 5.7 0.6 7.1
2014-15 -3.1 9.7 10.6 10.3 7.4 7.5
2015-16 8.5 8.4 13.5 3.6 6.1 8.1
2016-17 (P) -5.4 10.6 7.7 6.1 9.8 7.0
2017-18 (Q) -1.0 6.2 3.7 4.5 20.4 6.5
Source: Government of Himachal Pradesh, Economics & Statistics Department, Based on 2011-12
Series.
25
20
15
10 2013-14
5 2014-15
0 2015-16
-5 2016-17 (P)
-10 2017-18 (Q)

23
II.5 State Gross Domestic Product and Net Domestic Product
The growth pattern of State’s Domestic Product (both Gross20 and Net21) is considered the single most
important indicator of economic development. The State Gross Domestic Product (SGDP) for Himachal
Pradesh at market prices, at constant prices, was estimated at Rs.1, 09,747 crore in 2017-18 (Base
2011-12 Series) as against Rs.14,112 crore in 1999-2000 (Base 1999-2000 Series), while Net State
Domestic Product(NSDP) at market prices, at constant prices, was estimated at Rs.91,207 crore in 2017-
18 (Base 2011-12 Series) as against Rs.12,467 crore in 1999-2000 (Base 1999-2000 Series). This depicts
an impressive annual growth rate ranging from a minimum of 5.1 percent during 2001-02 to 2002-03 and
maximum of 9.1 percent during 2005-06 to 2006-07 for SGDP. Similarly, The State Gross Domestic
Product (SGDP) for Himachal Pradesh at factor cost, at current prices, was estimated at Rs.1, 36,542
crore in 2017-18 (Base 2011-12 Series) as against Rs.14,112 crore in 1999-2000 (Base 1999-2000
Series), while Net State Domestic Product(NSDP) at market prices, at current prices, was estimated at
Rs.1,17,191 crore in 2017-18 (Base 2011-12 Series) as against Rs.12,467 crore in 1999-2000 (Base 1999-
2000 Series).. (Refer Table No II.6 and II.7)

20 Gross State Domestic Product (GSDP) is defined as a measure, in monetary terms, of the volume of all goods and
services produced within the boundaries of the State during a given period of time, accounted without duplication.

21
Net State Domestic Product (NSDP) is defined as a measure, in monetary terms, of the volume of all goods and
services produced within the boundaries of the State during a given period of time after deducting the wear and tear
or depreciation, accounted without duplication.

24
 Table No. II .7
GROSS AND NET STATE DOMESTIC PRODUCT
Year GSDP at Market Prices NSDP at Market Prices (Rs. Per Capita Net State
(Rs. Crore) Crore) Domestic Product/ Per
Capita Income(Rs.)
At Current At At Current At At At
Prices Constant Prices Constant Current Constant
Prices Prices Prices Prices
1 2 3 4 5 6 7
1999-2000 14112 14112 12467 12467 20806 20806
2000-01 15661 15004 13853 13262 22795 21824
2001-02 17148 15786 15215 13938 24608 22543
2002-03 18905 16585 16751 14617 26627 23234
2003-04 20721 17925 18127 15596 28333 24377
2004-05 24077 24077 24489 21189 33348 33348
2005-06 27127 26107 23743 23009 36949 35806
2006-07 30281 28483 26247 24819 40393 38195
2007-08 33963 30917 28873 26362 43966 40143
2009-10 48189 35897 39141 29149 58402 43492
2010-11 56980 39054 46216 31590 68297 46682
2011-12 72720 72720 60536 60536 87721 87721
2012-13 82820 77384 69432 64519 99730 92672
2013-14 94764 82847 80129 69398 114095 98816
2014-15 103772 89060 87345 74553 123299 105241
2015-16 114239 96274 96850 80563 135512 112723
2016-17 (P) 125122 103038 107585 85826 149028 118888
2017-18 (Q) 136542 109747 117191 91207 160711 125078

II. 6 Sectoral Contribution of State Gross Domestic Product

Sectoral contribution of SGDP during 2012-13 to 2017-18, showed a significant contribution in
secondary activities followed by Banking & insurance, real estate & owner-ship of dwelling business
services as well as from Public administration defence & services. During 2013-14 to 2014-15 period, the
increase in total SGDP is mainly attributed to high annual growth rates in all the sectors whereas the
growth rate for Primary sector was negative. (Refer Table No. II 6, II.8 & II.9).

25
 Table No II. II.8
GROSS STATE DOMESTIC PRODUCT (At Current Prices)
(Rs. in crore)
Year Agricultur Manufacturi Transport Banking Public Gross Plus Gross
e forestry ng, communicati & administrati Value Product domestic
& logging construction, on & trade insurance on, defence Added at Taxes product
fishing, electricity, real estate & services Basic less at factor
mining & gas & water & owner- Prices Subsidies cost
quarrying supply ship of
dwelling
business
services
1 2 3 4 5 6 7 8 9
1999- 3265 5162 1737 1286 2662 - - 14112
2000
2000-01 3954 5602 2056 1365 2684 - - 15661
2001-02 4442 6095 2305 1552 2754 - - 17148
2002-03 4657 6867 2742 1678 2961 - - 18905
2003-04 5194 7468 2888 2042 3129 - - 20721
2004-05 6197 9176 3468 1767 3469 - - 24077
2005-06 6858 10373 4007 1918 3971 - - 27127
2006-07 7010 12101 4235 2177 4758 - - 30281
2007-08 7887 13507 5027 2405 5137 - - 33963
2009-10 9166 20679 7471 3268 7605 - - 48189
2010-11 10914 24040 8347 3672 10007 - - 56980
2011-12 11913 30405 7576 9622 9887 69403 3317 72720
2012-13 13443 33935 8660 11346 11524 78908 3912 82820
2013-14 15262 38440 10285 13002 12369 89358 5406 94764
2014-15 15265 41617 11764 14724 13961 97331 6441 103772
2015-16 17393 45652 13141 15936 15135 107257 6982 114239
2016-17 18190 50596 14173 17315 17158 117431 7691 125122
(P)
2017-18 17560 54993 14905 19008 21394 127860 8682 136542
(Q)
Source: Government of Himachal Pradesh, Economics & Statistics Department, Based on
1999-2000, 2004-05 and 2011-12 Series.

26
 Table No II.9
GROSS STATE DOMESTIC PRODUCT (At Constant Prices)
(Rs. in crore)
Year Agricultur Manufacturi Transport Banking Public Gross Plus Gross
e forestry ng, communicat & administrati Value Product domestic
& logging construction, ion & trade insurance on, defence Added at Taxes product
fishing, electricity, real estate & services Basic less at factor
mining & gas & water & owner- Prices Subsidies cost
quarrying supply ship of
dwelling
business
services
1 2 3 4 5 6 7 8 9
1999- 3265 5162 1737 1286 2662 - - 14112
2000
2000-01 3773 5437 1920 1252 2622 - - 15004
2001-02 4093 5694 2080 1336 2583 - - 15786
2002-03 4184 6153 2186 1370 2692 - - 16585
2003-04 4671 6544 2356 1582 2772 - - 17925
2004-05 6197 9176 3468 1767 3469 - - 24077
2005-06 6578 9960 3820 1958 3791 - - 26107
2006-07 6539 11315 4078 2270 4282 - - 28484
2007-08 7118 12371 4488 2513 4427 - - 30917
2009-10 6340 15390 5757 3040 5370 - - 35897
2010-11 7496 15987 5999 3578 5994 - - 39054
2011-12 11913 30405 7576 9622 9887 69403 3317 72720
2012-13 12725 32049 8040 10598 10714 74126 3258 77384
2013-14 13954 34223 9134 11203 10775 79289 3558 82847
2014-15 13525 37551 10099 12354 11573 85102 3958 89060
2015-16 14674 40724 11459 12793 12274 91926 4348 96274
2016-17 13879 45021 12342 13579 13480 98301 4737 103038
(P)
2017-18 13738 47819 12800 14185 16235 104777 4970 109747
(Q)
Source: Government of Himachal Pradesh, Economics & Statistics Department, Based on 1999-
2000, 2004-05 and 2011-12 Series.

II. 7 Development Expenditure of State Gross Domestic Product

The contribution of Revenue Expenditure and Capital Expenditure is an important indicator to reflect
human development priorities of the State. During 2012-2018, the contribution of revenue expenditure
hovered around 78-83%, while it was around 16-21% for capital expenditure to total expenditure in
Himachal Pradesh (Refer Table No. II.10)

27
 Table No. II. 10
Revenue and Capital Expenditure
(Rs. in Crore)

Year Revenue Capital Total

2012-13 16174(78.08%) 4540(21.92%) 20714
2013-14 17352(80.92%) 3919(19.08%) 21443
2014-15 19787(81.73%) 4424(18.27%) 24211
2015-16 22303(78.51%) 6106(21.49%) 28409
2016-17 25344(73.66%) 9061(26.34%) 34405
2017-18 27053(78.62 %) 7358(21.38%) 34411
2018-19(BE) 30400(79.43%) 7872(20.57%) 38272
Source: Demand for Grants and Appropriations Statement of Budget Document (Finance Department)

II.8 Allocation and Actual Expenditures under Five Year Plans

The state recorded insignificant investments in terms of actual expenditures during First to Fifth Five
Year Plan period. However, from Seventh Five Year Plan period (1985-90) onwards till the end of Eighth
Five Year Plan period, the investment for development activities increased substantially. This substantial
increase in the investments also reflected substantial increase in the per capita investment in the state.
This could be attributed to the creation of income generation activities especially in horticulture,
cultivation of fresh vegetable seeds and tourism related activities. This was made possible due to
development of transport and communication activities as a significant proportion of investment under
five year plans and annual plans were made for this economic sub-sector. This also increased
employment opportunities in the real estate services. Several Centrally sponsored programmes were
implemented for developing processes of human development especially higher investments in sanitation,
housing and education. Fortunately, most of other investments were spent on development programmes
related to improving the dominant agricultural and allied activities especially fruit cultivation. The annual
investment from 2012-13 onwards depicts marginal increase. (Refer Table No II. 11). Percent actual
expenditures to the stipulated outlays indicate efficiency of government machinery to utilize the annual
allocated funds. The state has performed exceeding well as percent expenditures exceeding to the
allocations during majority of Five Year Plan periods as well as for Annual Plan periods. However,
expenditures were poor during Fifth Five Year Plan (1974-78) and marginally less during Tenth Five
Year Plan. (Refer Table No. II.11)

28
 Table No. II.11
Himachal Pradesh
Actual Expenditure under Five Years Plans and Annual Plans
Plan Allocations Actual Growth Rate Percent
Expenditures Actual Expenditures to
Expenditures Allocations
First Plan (1951-56) 5.64 5.27 93.43
Second Plan (1956-61) 14.72 16.03 204.17 108.89
Third Plan (1961-66) 27.93 33.84 111.10 121.16
Annual Plans (1966-67) to 40.65 39.78 97.85
17.55
(1968-69)
Fourth Plan (1969-74) 101.40 113.43 185.14 102.70
Fifth Plan (1974-78) 283.95 162.14 42.94 57.24
Seventh Plan (1985-90) 1178.00 1324.76 797.78 112.39
Eighth Plan (1992-97) 2502.00 3480.72 783.86 139.08
Ninth Plan (1997-2002) 7488.00 7899.67 126.96 105.48
Tenth Plan (2002-2007) 10300.00 8880.31 5.75 86.21
Eleventh Plan (2007-12) 13778.00 14056.57 58.28 102.01
Twelfth Plan (2012-17) 22800.00
Annual Plan (2012-13) 3700.00 3756.92 101.02
Annual Plan (2013-14) 4100.00 4185.45 11.42 101.01
Annual Plan (2014-15) 4400.00 4806.55 14.83 101.02
Annual Plan (2015-16) 4800.00 4651.55 -3.22 96.91
Annual Plan (2016-17) 5200.00 4707.93 1.21 90.54
Annual Plan (2017-18) 5700.00* 5700.00 21.07 100
Annual Plan (2017-18) 6300.00* 6300.00 10.53 100
*Audited Expenditure figures are awaited.
Source: Statistical Abstract of Himachal Pradesh: 2014-15, Department of Economics and Statistics,
Government of Himachal Pradesh and Planning Department, H.P.

29
 II.9 Himachal Pradesh Fiscal Management
Himachal Pradesh state being a ‘Special Category State’ ever since its formation in 1971 is financially
dependent on Central Government funds. One of the major challenges faced by Himachal Pradesh state is
the fiscal management and creation of financial capital for the developmental activities. The state requires
to generate financial resources for processes of economic and human development to broaden the budget
base for Social and economic development. The government is conscious of the precarious financial
situation and thus all steps are being taken to reduce unproductive expenditures, generate new resources,
impose financial discipline and accelerate development through promotion of tourism and horticulture
and also enhance the incomes of the state through sale of hydro-power, for which power projects have
been executed expeditiously. The overall financial position of the state is depicted in Table No. II.18.
The total revenue receipts 22 in 2013-14 were of Rs. 15711 crore which increased to Rs.26264 crore in
2016-17 and the budget estimates of revenue receipts for 2017-18 were fixed at Rs. 30400 crore.
However, a significant proportion of this revenue receipts were from Grant-in-Aid as direct transfers from
the Central Government under ‘Special Category Status’. The grant-in-aid accounted 11% of the total
revenue receipts in 2017-18. The data depicts that the dependence from Central Government was reduced
during this period as more revenue was generated under the tax and non-tax revenue heads.
The capital receipts 23 also increased from Rs. 4326 crore in 2013-14 to Rs.6667 crore in 2017-18,
estimated revenue receipts for 2018-19 are Rs.7765 crore. Considering inflation this seems to be marginal
increase, during the period thus government adopted fiscal restraint which seems a positive step in the
long run.
The revenue expenditures24 were Rs. 17353 crore in 2013-14, which increased to Rs. 27053 crore in
2017-18. Thus, major revenue expenditures were to maintain the existing services created under different
development programmes.

22
Revenue Receipts: Government receipts which neither (i) create liabilities nor (ii) reduce assets are called revenue
receipts. These are proceeds of taxes, interest and dividend on government investment, cess and other receipts for
services rendered by the government. These are current income receipts of the government from all sources.
Government revenue is the means for government expenditure. In the same way as production is means for
consumption. Revenue receipts are further classified Into Tax Revenue and Nontax Revenue. Tax revenue includes
Share of Central Tax – Union Excise Duty, Tax on Income and Corporation Tax, Others, States Own Tax – Land
Revenue, Thus the Other Tax Revenue, State Excise Duty, Sales Tax and Other Service Taxes. Non Tax Revenue
‘includes General Services, Social and community services, Economic services Interests, Receipts, Dividends and
Profits

23
Capital Receipts: Government receipts which either (i) create liabilities (e.g. borrowing) or (ii) reduce assets (e.g.
disinvestment) are called capital receipts. Thus when govt. raises funds either by incurring a liability or by disposing
off its assets, it is called a capital receipt.

24
Revenue Expenditure are, an expenditure which neither creates assets nor reduces liability is called Revenue
Expenditure, e.g., salaries of employees, interest payment on past debt, subsidies, pension, etc. These are financed
out of revenue receipts. Broadly, any expenditure which does not lead to any creation of assets or reduction in
liability is treated as revenue expenditure.

30
Capital expenditure 25 was Rs. 3919 crore in 203-14 which increased to Rs. 7358 crore in 2017-18.
Capital expenditure stands at Rs. 9061 crore in 2016-17, depicted strengthening of investments. The
decline in capital expenditures for the 2017-18 will definitely impact the development of investments for
social and development projects.
There was a fiscal deficit of Rs. 4012 crore in 2013-14, which is estimated to increase Rs.7821 crore in
2018-19, but there was surplus of Rs.1739 crore in 2015-16.
Around 70-80% expenditure continues to be non-plan expenditure, where as only 20-30% is plan
expenditure, thus generation of growth potential for capital investments to improve the processes of
human development indicators have been substantially reduced in 2017-18. (Refer Table No.II.12)

25
An expenditure which either creates an asset (e.g., school building) or reduces liability (e.g., repayment of loan) is
called capital expenditure.

31
 Table No. II. 12
Overall Financial Position of the State of Himachal Pradesh ( Rs. in Crore)
A. REVENUE RECEIPTS 2013-14 2014-15 2015-16 2016-17 2017- 2018-19
18 (BE)
(i) State’s Own 6903 8017 8525 8756 9472 10229
(ii) Central Transfers (including 8181 8117 12616 14096 14966 15880
Taxes)
(iii) CSS Grants (excluding CSS 627 1710 2299 3412 2930 4291
loans)
TOTAL REVENUE 15711 17844 23440 26264 27368 30400
RECIPTS
B. REVENUE
EXPENDITURE
(i) Non-Plan 14809 16572 18655 20722 23206 28303
(ii) Plan 1965 1765 1818 1853 1858 2189
(iii) CSS 579 1450 1830 2768 1989 3076
TOTAL REVENUE 17353 19787 22303 25344 27053 33568
EXPENDITURE
NET(Revenue Deficit/ Surplus) -1641 -1944 1138 920 314 -3168
C. CAPITAL RECEIPTS
(i) Total Borrowings (excluding 4309 5202 5963 8137 6592 7730
W&M/ overdraft but includes
net PF receipts)
(ii) Recovery of Loans 17 41 26 30 40 35
(iii) Misc. Capital Receipts 0 650 0 0 35 0
TOTAL CAPITAL 4326 5892 5989 8167 6667 7765
RECEIPTS
D. CAPITAL
EXPENDITURE
(i) Repayment of 1532 1477 2779 2272 3100 3184
loans(excluding W&M)
(ii) Non-Plan Capital Exp. 60 63 564 513 468 476
(iii) Plan Capital Exp. 2264 2405 2362 5463 2843 2997
(iv) CSS 64 479 402 812 948 1215
TOTAL CAPTAL 3919 4424 6106 9061 7358 7872
EXPENDITURE
E. Fiscal Surplus/ -4012 -4200 +1739 -5839 -3870 -7821
Deficit
F. Plan Exp. 4714 6088 6257 10795 7563 9469
Non-Plan Exp. 16729 24906 23322 25280 27249 31971
Total 21443 30994 29579 36075 34812 41440
BE: Budget Estimates Revenue Receipts include State’s Own tax, Central Transfers (including Taxes), CSS Grants
(excluding CSS loans) Capital Receipts includes Total Borrowings (excluding W&M/ overdraft but includes net PF
receipts), Recovery of Loans, Misc. Capital Receipts

32
II.10 Per Capita Revenue and Expenditure
The per capita revenue by the state depicts, significant increase from Rupees 6228 in 2003-04 to Rupees
40,824 in 2017-18 R.E budget. The per capita revenue expenditure also increased from Rupees 9970 in
2003-04 to Rupees 44,651 in 2017-18 R.E. budget. Thus the gap between per capita revenue and
expenditures is increasing. Although it shows significant investments in the developmental programmes
especially for social sector and human development programmes, but at the same time revenues need to
be enhanced to reduce the revenue-expenditure gap.
The proportion of per capita expenditures for under capital heads, indicate the potential for developing
investments for the processes of human development. The proportion of per capita expenditures under
revenue head hovers around 70-90 percent, while only 10-30 percent of this expenditure is spent under
capital expenditure head. Insignificant variations have been recorded in the expenditures under revenue
and capital heads during 2003-04 to 2017-18 R.E Thus to improve the investments, the state requires to
improve the financial management and generate financial resources for processes of economic and human
development to broaden the budget base for Social and economic development. (Refer Table No. II. 13)
Table No. II. 13
Himachal Pradesh
Per Capita Revenue and Expenditure (Indian Rupees)

Year Per Capita Revenue Per Capita Revenue Percent Revenue and
Receipts Expenditure Capital Expenditure
1 2 3 Revenue Capital
2003-04 6,228 9970 88 12
2004-05 7,126 9913 90 10
2005-06 9,903 11002 89 12
2006-07 11,622 12984 87 13
2007-08 13,322 14146 85 15
2008-09 13,406 16588 82 12
2009-10 14,728 18639 85 15
2010-11 18,537 21927 88 12
2011-12 20,946 22624 88 12
2012-13 22,178 25777 89 11
2013-14 22,057 26966 90 10
2014-15 26,068 31673 89 11
2015-16 34146 32490 75 25
2016-17 38260 36920 70 30
2017-18 40824 44651 79 21

R.E: Revised Estimates, B.E: Budget Estimates Source: -Finance Department, Himachal Pradesh.

33
II.11 Major Conclusions and Findings

The state of Himachal Pradesh has depicted significant progress in the economy as annual growth rate of
economy (both during the Five Year Plans and annual Plans) has increased significantly as compared to
the national average especially after Ninth Five Year plan (1997-02). Trends in the growth rate of Gross
Domestic Product were higher as compared to the neighbouring States.
The contribution of Domestic Product has significantly increased for secondary and tertiary sectors during
the last two decades, signifying changes in the employment opportunities in these sectors and a
corresponding increase in the average incomes and investment rates.
Fiscal management has also improved as actual revenue and per capita revenue has increased due to
development in infrastructure sector.

34
 Chapter-III: Sectoral and Departmental Expenditures and
Decentralized Planning

III.1 Introduction to Sectoral Planning

As already stated the actual financial expenditures under Five plans and Annual plans, can lead to the
substantial changes in the processes of human development formation. Several efforts were made under
the UNDP- Planning Commission programme to create essential environment at the state level to specify
annual budgets that could contribute development of human quality and also provided all necessary
infrastructural support to transform the quality of human development. In this direction state planning
departments were sensitized to allocate funds judiciously for balanced regional development, covering
various social and economic sub sectors across all regions. A decentralised planning approach has already
been adopted by the Government of Himachal Pradesh, where local administration had the power to
identify the development activities which were in sync with their requirement and adequate fund
allocations were provided for such development programmes.
The expenditures have been categorised under Economic Sector, Social Development sector and Other
General Services. Although all the three sectors contribute towards the human development directly or
indirectly, yet the contribution of some of the subsectors from Economic sector like rural development,
Special area development, Energy development, Transport and Communication and Science and
technology are essentially significant. Similarly, the expenditure on all the sub sectors of Social
Development like; Education & sports, Health & Family welfare, Sanitation, Housing and Urban
development, Welfare of SCs, STs and other Backward groups, Labour welfare and Women, Child and
Nutrition department directly translate into creation of conducive conditions for human resources
development especially improving quality of population. An analysis of actual expenditures for these sub-
sectors under Five Year Plans and Annual Plans depicts the following major features. (Refer Table No
III.1 and III.2)
A substantial increase in the actual expenditures under Five Year Plans (7th Plan to 11th Plan, 1992-2012)
has been recorded. The actual expenditures increased from Rs.1325 crore in Seventh Five Year Plan
(1985-90) to Rs.140,57 crore in Eleventh Five Year Plan (2007-12) period. The financial outlay for 12 th
Five-year plan (2012-17) has been further increased to Rs.22,800 crore. There has been consistent
increase in outlays in subsequent annual plans.
Out of the total expenditure of Rs.1325 crore during Seventh Plan period, 75% amount was utilised for
Economic sector, 23% for Social sector. Major expenditures under Economic sector for the processes of
human development were for Energy sector (27%), Agricultural and Allied activities (20%) and Transport
and Communication Sector (15%). Actual expenditure on Social sector was 23% of the total expenditures.
A significant proportion of this amount was spent on Sanitation, Housing and Urban development (11%),
Education sector (7%) and Health & Family Welfare (3%). Eighth Plan expenditure was Rs. 3499 crore
out of which 62% was utilized under Economic sector, 35% for Social development and 2.42% for other
General Services. Major actual expenditures under Economic sector for the processes of human
development were for Energy sector (19%), followed by Agriculture (14%) and transport and
communication (13%). This depicts the shift of expenditures from Economic sector to Social sector
owing to the priorities for creating conducive conditions for human development processes.
The 9th and 10th plan period recorded, a substantial increase in the total expenditures as well as a shift in
the priority towards the higher actual expenditures in social development and economic sub sectors of

35
transport and communication and rural development. This created conducive infrastructure for improving
human development processes. 10th Five-year plan further enhanced the expenditures for Social
development especially for sanitation, housing, education and health sub-sectors as 45% of the
expenditure in this plan was actually spent under Social development.
Strengthening economic base like investments in transport and communication, development of small
scale industry for employment generation especially small scale industries was visualised as prime
requirement to consolidate the human development processes in the 11th Five-year plan. Thus the plan
laid emphasis for investing in the transport and communication sector, industries, energy sector and rural
development activities in addition to the Social development sector especially sanitation, housing and
education sub-sector.
12th Plan (2012-17) outlays increased substantially to Rs.22,800 crore from Rs.14056 crore in the 11 th
Five Year Plan. The plan further suggests strengthening of transport and communication sub-sector,
followed by energy and rural development. 34% funds have been stipulated for Social development in the
12th Five-Year Plan period and education and sanitation sectors continue to be the priority areas. The
annual plan actual expenditures of 2017-18 to 2018-19 again depict priority of transport and
communication, energy and education sector.

36
 Table No III.1
Actual Expenditure / Sub-sector Expenditures Under Five Years Plans
(Rs. in Crore)
th th th th th th
Sector 7 8 9 Plan 10 11 12 2017-18 2018-19
Plan Plan 1997- Plan Plan Plan (AE) (AE)
1985- 1992- 2002 2002- 2007-12 2012-17
90 97 07
All Expenditures 1325 3499 7897 8880 14057 22800 5700 6300
Agricultural and Allied 260 487 918 874 1791 2859 714 844
Rural Development 49 117 309 288 642 1256 114 128
Special Area 20 39 69 153 28 28
Programme
Irrigation & Flood 71 149 318 641 1687 1940 371 431
Control
Energy 352 662 1266 943 1493 2761 683 683
Industry and Mineral 43 87 116 70 119 221 119 114
Transport and 196 440 1113 1311 2660 4635 1074 1095
Communication
Science & Tech 0.91 5 7 42 76 102 17 17
General Economic 24 258 488 341 495 586 267 285
Services
ECONOMIC 996 2202 4545 4583 9221 14751 3387 3625
SECTOR
Education & Sports 98 1173 1535 2823 803 917
Health & Family 43 919 751 1370 334 401
Welfare
Sanitation, Housing and 140 932 1432 2095 543 616
Urban Dev
Information and 3 19 3 5 0.50 0.53
Publicity
Welfare of SC/ST and 6 75 493 828 186 203
Other Backwards
Labour Welfare 1 4 1 5 1 2
Women & Child Social 9 244 231 429 345 408
& Nutrition
SOCIAL 301 1213 3212 3993 4539 7681 2213 2548
DEVELOPMENT
OTHER GENERAL 28 84 128 215 288 367 100 127
SERVICES
Includes budget stipulated under BASP (Backward Area Special Plan), SCSP (Scheduled Castes Sub
Plan) and TSP (Tribal Sub Plan). AE (Anticipated Expenditure)
Source: Statistical Abstract of Himachal Pradesh: 2014-15, Department of Economics & Statistics and
Planning Department, Himachal Pradesh

37
 Table No. III.2
Per Cent Actual Expenditure/ Sub-sector Expenditures Under Five Years Plans and Annual Plans
(2017-18 and 2018-19)
th th
Sector 7 8 9th Plan 10th 11th 12th 2017- 2018-
Plan Plan 1997- Plan Plan Plan 18 19
1985- 1992- 2002 2002- 2007- 2012- (AE) (AE)
90 97 07 12 17
All Expenditures (Rs 1325 3499 7896 8880 14056 22800 5700 6300
Crore)
Agricultural and Allied 19.62 13.90 11.62 9.84 12.74 12.54 12.53 13.40
Rural Development 3.69 3.34 3.91 3.24 4.57 5.51 2.00 2.03
Special Area Programme 0.00 0.25 0.44 0.49 0.67 0.49 0.44
Irrigation & Flood 5.35 4.22 4.02 7.22 12.00 8.51 6.51 6.84
Control
Energy 26.56 18.89 16.03 10.63 10.62 12.11 11.98 10.84
Industry and Mineral 3.24 2.48 1.47 0.79 0.85 0.97 2.09 1.81
Transport and 14.79 12.56 14.09 14.77 18.92 20.33 18.84 17.38
Communication
Science & Tech 0.07 0.13 .08 0.48 0.54 0.45 0.30 0.27
General Economic 1.81 2.40 6.18 3.85 3.52 2.57 4.68 4.52
Services
ECONOMIC SECTOR 75.16 62.90 57.65 51.61 65.60 64.70 59.42 57.54
Education & Sports 7.39 13.21 10.92 12.38 14.09 14.56
Health & Family 3.42 10.36 5.34 6.01 5.86 6.37
Welfare
Sanitation, Housing and 10.56 16.49 10.19 9.19 9.53 9.78
Urban Development
Information and 0.02 0.21 0.02 0.02 0.01 0.01
Publicity
Welfare of SC/ST and 0.45 0.85 3.51 3.63 3.26 3.22
Other Backwards
Labour Welfare 0.07 0.04 0.01 0.02 0.02 0.03
Women & Child Social 0.67 2.75 1.64 1.88 6.05 6.48
& Nutrition
SOCIAL 22.71 34.66 40.68 44.97 32.29 33.69 38.82 40.44
DEVELOPMENT
OTHER GENERAL 2.11 2.40 1.63 2.42 2.05 1.61 1.75 2.02
SERVICES
Includes budget stipulated under BASP (Backward Area Special Plan), SCSP (Scheduled Castes
Sub Plan) and TSP (Tribal Sub Plan)
Source: Statistical Abstract of Himachal Pradesh: 2014-15 of Department of Economics & Statistics
and Data from Planning Department, Himachal Pradesh.

38
III.2 Sectoral and Departmental Actual Expenditures during 12 th Five Year Annual Plans
The first three years of Annual Plan expenditures depict consolidation of Economic sector as nearly 57-
65% of the total annual expenditure for the years (2012-13 2018-19) was incurred on this sector.
However, annual expenditure 2018-19 increased for Social sector substantially from 38% in the previous
year to 40%. The annual plan actual expenditures of 2012-13 to 2018-19 again depict priority of
transport and communication, energy and education sector.

Table No III.3
Per Cent Actual Expenditure/ Sub-sector Expenditures under Annual Plans and 12 th Five Year
Plan

Sector 2012- 2013-14 2014-15 12th Plan 2017-18 2018-19

13 Proposed (AE) (AE)
Outlay*
All Expenditures (Rs 3700 4100 4400 22800 5700 6300
Crore)
Agricultural and Allied 12.98 12.80 11.78 12.54 12.53 13.40
Rural Development 4.64 4.09 4.90 5.51 2.00 2.03
Special Area Programme 0.67 0.63 0.84 0.67 0.49 0.44
Irrigation & Flood Control 7.39 7.26 7.00 8.51 6.51 6.84
Energy 15.72 15.02 13.48 12.11 11.98 10.84
Industry and Mineral 0.99 1.18 1.83 0.97 2.09 1.81
Transport and 20.93 20.87 17.45 18.84 17.38
Communication 20.33
Science & Tech 0.41 0.38 0.56 0.45 0.30 0.27
General Economic Services 2.53 2.37 2.64 2.57 4.68 4.52
ECONOMIC SECTOR 65.26 65.35 59.81 64.70 59.42 57.54
Education & Sports 12.80 12.73 12.38 14.09 14.56
Health & Family Welfare 5.78 6.33 6.01 5.86 6.37
Sanitation, Housing and 8.75 8.71 9.53 9.78
Urban Dev 9.19
Information and Publicity 0.2 0.02 0.02 0.01 0.01
Welfare of SC/ST and 2.94 3.42 3.26 3.22
Other Backwards 3.63
Labour Welfare 0.01 0.02 0.02 0.02 0.03
Women & Child Social & 1.82 1.84 6.05 6.48
Nutrition 1.88
SOCIAL 32.6 33.48 38.38 33.69 38.82 40.44
DEVELOPMENT
OTHER GENERAL 2.38 1.17 1.81 1.61 1.75 2.02
SERVICES
Source: Statistical Abstract of Himachal Pradesh: 2014-15 of Department of Economics & Statistics
and Data from Planning Department, Himachal Pradesh.

39
.
III.3 Growth Rate Sectoral and Departmental Actual Expenditures during Five-Year Plans and
Annual Plans
The actual expenditures under the Five-Year plans showed 164% increase during 7th to 8th Plan period,
125% increase during 8th to 9th Plan period, 12.46 % increase during 9th to 10th Plan period, 58.28%
increase during 10th to 11th plan period, 62.20% increase during 11th to 12th Plan period, and 10.53%
during 2017-18 to 2018-19. Thus a substantial increase has been made in the actual expenditures under
Five-year Plans. Sector and sub-sector growth rate of the actual expenditures depict constant significant
increase under all Five-year Plans for transport and communication, Special Area programme, science
and technology, Welfare of SC/ ST and Backward Classes and Education sectors. The actual annual plan
expenditure during the 12th Five-year Plan also reflects higher growth for Social development sector.
(Refer Table No. III.4 and III.5)

40
 Table No III.4
Per Cent Growth Rate, Actual Expenditure / Sub-sector Expenditure Under Five Years Plans

Sector 7thPlan 8th Plan- 9thPlan-10th 10th Plan - 11th Plan 2017-18 to
8th Plan 9th Plan Plan 11th Plan 12th Plan 2018-19

All Expenditures (Rs 164.07 124.89 12.46 58.28 62.20 10.53

Crore)
Agricultural and Allied 87.30 88.69 -2.28 103.74 59.00 18.21
Rural Development 138.77 164.79 -4.50 122.12 94.61 12.28
Special Area Programme 103.67 72.37 123.27 0.00
Irrigation & Flood 109.85 114.35 107.41 161.48 16.17
Control 14.49
Energy 88.06 91.55 -23.44 57.23 84.05 0.00
Industry and Mineral 102.32 34.23 -37.82 69.06 83.79 -4.20
Transport and 124.89 153.26 21.01 101.60 1.96
Communication 73.43
Science & Tech 400.00 48.84 520.03 78.85 34.41 0.00
General Economic 975.00 88.87 -28.09 43.77 6.74
Services 18.21
ECONOMIC SECTOR 121.10 106.95 2.62 97.24 59.95 7.03
Education & Sports 30.13 82.97 14.20
Health & Family Welfare -18.96 81.82 20.06
Sanitation, Housing and -2.73 13.44
Urban Dev 45.62
Information and Publicity -85.45 37.72 6.00
Welfare of SC/ST and 547.95 9.14
Other Backwards 67.06
Labour Welfare -33.23 82.33 100.00
Women & Child Social & -5.93 18.26
Nutrition 84.28
SOCIAL 302.99 164.79 24.65 13.38 69.0 15.14
DEVELOPMENT
OTHER GENERAL 200.00 52.38 71.87 33.63 26.53 27.00
SERVICES
Source: Statistical Abstract of Himachal Pradesh: 2014-15 of Department of Economics & Statistics
and Data from Planning Department, Himachal Pradesh.
.

41
III.4 Plan/ Non-Plan26 Expenditures for Social Development Sub-Sectors
The expenditures for three important sub –sectors of Social development (education, sports, arts and
culture, health and family welfare and Social security and welfare) during 2001-02 to 2018-19 B.E.
depicts substantial proportion of the actual funds were spent under non-plan expenditure, while a small
proportion of funds were actually spent under the plan expenditures for education, sports and health and
family welfare. Nearly half of the expenditure under Sarva Shiksha Abhiyan (SSA) for education sector in
2001-2003 was incurred on plan expenditure as per the requirements of Central Government. Similarly,
nearly half of the funds under health and family welfare were also spent under plan expenditure till 2007-
08, as they were specifically meant for investment in creating health services by the central Governments.
However, after exhausting the Central government funds under SSA and health programme, majority of
the expenditure was spent under the non-plan expenditure by the state government.
A substantial proportion of expenditure on Social Security and Welfare was incurred from 2001-02 to
2018-19 under the Plan. Thus, creation of new infrastructure and new projects for the processes of human
development needs strengthening in future plans. A substantial finance needs to be generated by the State
for this purpose. (Refer Table No. III.5)

26
The plan expenditures are estimated after discussions between each of the ministries concerned and the Planning
Commission for new investments and developmental projects. Non-plan revenue expenditure is accounted for by
interest payments, subsidies (mainly on food and fertilizers), wage and salary payments to government employees,
grants to States and Union Territories governments, pensions, police, economic services in various sectors, other
general services such as tax collection, social services, and grants to foreign governments. Non-plan capital
expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign
governments

42
 Table No III.5
Health and Social Security and Welfare Services
(Rs. in Lakh)
Education, Sports, Art Health and Family Social Security and
and Culture Welfare Welfare
Plan Non- % Plan Non- % Plan Non- %
Year
Plan Plan Plan Plan Plan Plan
2001-02 40397 47356 46.03 13442 12509 51.80 4025 2810 58.89
2002-03 43966 49773 46.90 14625 13140 52.67 5191 2793 65.02
2003-04 8876 88022 9.16 13919 15651 47.07 3837 6062 38.76
2004-05 11057 92655 10.66 17312 13803 55.64 6657 4696 58.64
2005-06 17546 99718 14.96 19270 15215 55.88 8720 2534 77.48
2006-07 22337 110112 16.86 22526 17220 56.67 10663 3160 77.14
2007-08 14003 134411 9.44 23266 20505 53.15 12646 3304 79.28
2008-09 11103 161115 6.45 4121 44125 8.54 11397 11234 50.36
2009-10 17204 189985 8.30 4761 56207 7.81 15329 10659 58.98
2011-12 43498 255517 14.55 13326 66404 16.71 136114 441222 23.58
2012-13 53742 290200 15.63 16059 79110 16.87 158928 512040 23.69
2013-14 61081 300588 16.89 17053 83076 17.03 176026 555051 24.08
2014-15 84050 343432 19.66 40818 89127 31.41 33094 24550 57.41
2015-16 10285 40289 20.34 57006 84734 40.22 34633 30104 53.50
2016-17 120336 403755 22.96 33265 105420 23.99 39125 36690 51.61
2017-18(RE) 138870 465196 22.99 79655 120928 39.71 41124 47106 46.61
2018-19(BE) 128765 490991 20.78 90061 134030 40.19 45572 60237 43.07
Source: Annual Financial Statements (Budget) Finance Department, H.P.

III.5 Decentralized Planning in Himachal Pradesh

The aim of balanced regional planning is to identify a process of development, which will raise quality of
population and living standards and open out to the people new opportunities for a more prosperous life
which in sync with their environment requirements. The concept of decentralized planning is as old as the
Gandhian economic thought itself. It envisages developing village economy in sync with the grassroots
realities of the area, where active participation of people for their own development and the ideology of
self sustaining village economy is prime concern.
The basic objective is ensuring equitable growth and development processes so that human development
and improvement of quality of population is ensured. The purpose is to create necessary opportunities for
inclusiveness, and sustainability at the grassroots level. The concept of decentralized planning was
accepted in principle since the beginning of planning era in the country but the major step
towards the decentralization was taken during the Fifth Five Year Plan, so as to tackle the problems
of poverty, unemployment, inequality, infrastructure backwardness more directly and effectively. The
Decentralized Planning process was initiated in a phased manner and the steps taken in this direction to
ensure adequate involvement of people and their representatives in the decision making process.

43
Implementation of third tier of administration – the Panchayati Raj institution made this possible after the
promulgation of 73rd and 74th amendment of the constitution.
In case of Himachal Pradesh, the decentralised planning is formulated by engaging the District Planning
Cells for the preparation of schemes at the micro level ( Zila Panchayat and Panchayat Samitis level ) .
Aim is to monitor the process of the implementation of all the plan schemes being run by various
departments soon after the approval of the budget. In addition to the schemes already in progress by the
respective departments, some schemes are specifically implemented through decentralized planning
programme. The district planning cell play a pivotal role in reviewing the implementation of all these
Decentralized Planning Programmes.
These schemes include:
 Sectoral Decentralized Planning,
 Vikas Mein Jan Sahyog ,
 Vidhayak Keshetra Vikas Nidhi Yojna,
 Mukhya Mantri Gram Path Yojna and the
 Backward Area Sub-Plan
 Tribal Area Sub-Plan.
 Scheduled Caste Sub Plan
 MPLAND Schemes
 20-Point Programmes

III.6 Unit of Decentralized Planning in Himachal Pradesh

Himachal Pradesh – mostly a hill state consists of 12 districts. Two districts of Lahaul – Spiti and Kinnaur
fall in the Greater Himalayan ranges and are surrounded in the east with China border. These two districts
have a significant proportion of tribal population which requires special attention due to their
inaccessibility and difficult terrain and climatic variations. As per Census 2011 information, the state has
recorded population of 6,864,602 dwelling in 20,690 villages and 59 towns. The state has been divided
into 80 Development Blocks and each Block has Panchayat Samiti. The State has 3226 Gram Panchayats-
the lowest level of planning units for decentralised planning. (Refer Table No III.6 ).

44
 Table No III.6
Himachal Pradesh- 2019
Units of Decentralized Planning
District Population Number of Number Number Number of Number of
2011 Census Villages of of Blocks Panchayat Gram
(Inhabited + Towns Samitis Panchayats
Uninhabited) 2011
2011 Census Census
Bilaspur 3,81,956 1061 4 4 4 151
Chamba 5,19,080 1591 5 7 7 283
Hamirpur 4,54,768 1725 4 6 6 229
Kangra 15,10,075 3869 9 15 15 748
Kinnaur 84,121 660 ‐ 3 3 65
Kullu 4,37,903 326 5 5 5 204
Lahaul & 31,564 ‐ 2 2 41
Spiti 521
Mandi 9,99,777 3338 5 11 11 469
Shimla 8,14,010 3231 11 11 11 363
Sirmaur 5,29,855 976 3 6 6 228
Solan 5,80,320 2544 8 5 5 211
Una 5,21,173 848 5 5 5 234
H.P. 68,64,602 20690 59 80 80 3226

III.7 Sectoral Decentralized Planning Programmes (SDP) in Himachal Pradesh

This programme was introduced in ten Non- Tribal Districts of the State during the year 1993-94. For the
tribal districts the component of SDP is taken care of under the Tribal Sub-Plan (TSP). In addition to the
Five-Year plan and annual plan funds, under this programme, funds are allocated to the 10 districts of
non-tribal areas, on a formula of 60% on the basis of population and 40% on the basis of geographical
area. The schemes of local importance and missing links in budget are identified by the local planners.
The District Commissioner (DC) concerned is, required to get the works approved from the District
Planning, Development and 20-Point Programme Review Committee. The earmarked funds are utilized
for the identified programmes as per the development requirements of the people. The development
programmes should be approved technically and budget approval by competent authority.27 Repairs and
renovation of public assets like schools, health institutions, veterinary institutions, water supply works,
irrigation and road construction are some of the development projects undertaken under this programme.
III.7.1 Vikas Mein Jan Sahyog (VMJS)
In order to have effective people’s participation in the development of the respective areas, some funds
are being provided for developmental works, where people can identify the development project and can
be effective partner by contributing 30% cost of the expenses and the rest 70% is being provided under
this scheme. Currently people’s contribution has been reduced to 25% of the cost. Initially the scheme
was introduced in 1991-92 as “Gaon Bhi Apna, Kam Bhi Apna”, which has been now rechristened as
“Vikas Main Jan Sahyog”. In case of urban areas 50% funds are required from people and the other 50%

27
Planning Department, Government of Himachal Pradesh.

45
is provided through this scheme. The maximum limit of the project cost has been revised and authority to
approve the limit vests with several authorities. (Refer Table No. III.7)
Table No III.7
Vikas Mein Jan Sahyog (VMJS)
Sanctioning Authority and Limit of Funds
Sr. Authorized Offices/ Department Limit for Financial Sanction (Rs.
No. in lakh)

1. Deputy Commissioner 40.00

2. Adviser, Planning Department 70.00
3. Addl. Chief Secretary/ Pr. Secretary/ 100.00
Secretary (Planning)
4. Finance Department Above 100.00
Source: Planning Department, Government of Himachal Pradesh

III.7.2 Mukhya Mantri Gram Path Yojana (MMGPY)

The scheme was reintroduced to strengthen decentralized planning process through ensuring accessibility
and communication with the inaccessible villages. DCs are empowered to sanction works under this
scheme. A provision of Rupees 4.00 crores per year for the 10 non-tribal districts have been stipulated
under this scheme in 2013-14, which enhanced to Rupees 5.00 crores in 2014-15 and further enhanced to
Rupees 5.50 crores in 2015-16 till 2018-19. The funds are allotted on the basis of total rural population
and total number of inhabited villages in the district on 50:50 ratios as per 1991 census. The provisions
under the scheme stipulate construction of pucca paths / link roads in the Scheduled Castes concentrated
population villages. The road alignment should be got approved from the PWD, so that the jeepable
roads later on could be upgraded to normal bus roads, as per the PWD norms. Monitoring of all the
above projects should be done by the competent authorities regularly
A total of Rs.39.36 crore, Rs.10.00 crore, Rs.32.66 crore and Rs.4.00 crore were utilized by the 10
districts respectively under the SDP, VMJS, VKVNY and MMGPY programmes in 2013-14, which have
enhanced to Rs.59.04 crore, Rs.21.58 crore, Rs.71.85 crore and Rs.5.50 crore in 2017-18 and 2018-19.
The district wise performance of the funds utilized under these four programmes varied as Kangra, Mandi
and Shimla district were major beneficiaries of SDP, VMJS and MMGPY programmes. (Refer Table No.
III. 8A to D).

46
 Table No. III.8A
Himachal Pradesh Funds Utilized under
Decentralized Planning and other Direct Expenditure
For Non-Tribal Districts- (Rs. in lakh)

District Sectoral Decentralized Planning (SDP)

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Bilaspur 198.22 172.55 252.00 286.01 277.52 350.80
Chamba 258.31 238.64 385.80 416.00 424.92 468.20
Hamirpur 288.98 185.31 299.56 323.01 404.92 363.52
Kangra 760.81 682.22 1102.88 1304.16 1289.97 1392.58
Kullu 392.82 338.84 567.02 607.53 651.98 627.48
Mandi 535.35 441.48 713.67 783.84 788.54 1476.15
Shimla 662.31 530.02 851.84 744.78 815.72 856.24
Sirmaur 287.28 263.39 428.82 459.35 439.28 646.51
Solan 291.94 227.32 340.56 381.51 400.07 418.28
Una 260.29 218.31 326.00 365.81 411.58 395.64
H.P. 3936.31 3298.10 5268.15 5672.00 5904.50 6995.40
Table No. III.8B
Himachal Pradesh Funds Utilized under
Decentralized Planning and other Direct Expenditure
For Non-Tribal Districts- (Rs. in lakh)

District Vikas Main Jan Sahyog (VMJS)

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Bilaspur 43.91 41.55 87.94 88.85 94.38 102.13
Chamba 67.22 63.61 134.62 136.03 144.47 156.39
Hamirpur 52.19 49.39 104.54 105.63 112.20 121.42
Kangra 202.76 227.39 375.44 379.36 403.01 436.09
Kullu 99.76 195.20 180.43 194.92 253.52 258.58
Mandi 140.32 176.00 249.05 350.00 267.33 313.20
Shimla 208.23 521.20 259.18 334.36 330.33 317.38
Sirmaur 69.48 65.76 139.19 140.64 149.41 161.66
Solan 59.33 106.15 317.06 233.50 281.02 160.00
Una 56.80 53.75 113.77 114.96 122.13 132.14
H.P. 1000.00 1500.00 1961.22 2078.25 2157.80 2159.00

47
 Table No. III.8C
Himachal Pradesh Funds Utilized under
Decentralized Planning and other Direct Expenditure
For Non-Tribal Districts- (Rs. in lakh)

District Vidhayak Kshetra Vikas Nidhi Yojana (VKVNY)

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Bilaspur 200.00 200.00 300.00 400.00 440.00 500.00
Chamba 216.18 216.00 324.00 432.00 475.20 540.00
Hamirpur 250.00 250.00 375.00 500.0 550.00 625.00
Kangra 750.00 750.00 1125.00 1500.00 1650.00 1875.00
Kullu 200.00 200.00 300.00 400.00 440.00 500.00
Mandi 500.00 500.00 750.00 1002.75 1100.00 1250.00
Shimla 400.00 400.00 600.00 800.00 880.00 1000.00
Sirmaur 250.00 250.00 375.00 500.00 550.00 625.00
Solan 250.00 250.00 375.00 500.00 550.00 625.00
Una 250.00 250.00 375.00 500.00 550.00 625.00
H.P. 3266.18 3266.00 4899.00 6534.75 7185.20 8165.00

Table No. III.8D

Himachal Pradesh Funds Utilized under
Decentralized Planning and other Direct Expenditure
For Non-Tribal Districts- (Rs. In lakh)

District Mukhya Mantri Gram Path Yojana (MMGPY)

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Bilaspur 23.18 28.97 31.87 31.87 31.87 31.87
Chamba 29.38 36.74 40.40 40.40 40.40 40.40
Hamirpur 34.16 42.71 46.99 46.99 46.99 46.99
Kangra 90.22 112.77 124.01 124.01 124.01 124.01
Kullu 14.02 17.52 19.28 19.28 19.28 19.28
Mandi 64.80 81.00 89.11 89.11 89.11 89.11
Shimla 52.38 65.48 72.03 72.03 72.03 72.03
Sirmaur 26.68 33.35 36.70 36.70 36.70 36.70
Solan 43.56 54.44 59.88 59.88 59.88 59.88
Una 21.62 27.02 29.73 29.73 29.73 29.73
H.P. 400.00 500.00 550.00 550.00 550.00 550.00

Source: Planning Department, Government of Himachal Pradesh

48
III.7.3 Backward Area Sub Plan
In order to bring backward areas in the mainstream of development for removing economic disparities,
the identification of backward areas was taken up in Fourth Five Year plan (1969-74) period. Efforts were
made to identify backward areas which were neglected due to their remoteness and inaccessibility.
Indicators for identifying these backward areas were remoteness, inaccessibility, socio-economic
development and infrastructural backwardness. The process formulated Sub Plan for the identified
backward areas for specific development.
The government declared 321 Panchayats as backward, vide notification No. PLG-FC (F)3-55/82 dated
10-1-1986. As a result of reorganization of Panchayats a total of 551 Panchayats out of 3243 Panchayats
have been identified as backward areas in 2006. The scheme is operationalised in 10 non-tribal districts
For the overall development of backward areas, the Government of Himachal Pradesh framed a
comprehensive policy during the year 1995-96. A separate Sub Plan for the development of Backward
Areas in the State came into existence. Sectoral outlays under the Economic and Social Development
Sub-Sectors are earmarked. The Sub-Sectors identified include; agriculture, Soil Conservation
(Agriculture), Horticulture, Minor Irrigation, Animal Husbandry, Forestry, Village and Small Scale
Industries, Rural Roads & Bridges, Elementary Education, General Education, Rural Health (Allopathy),
Ayurveda and Rural Water Supply.
A total of Rs. 20650.00 lakh were stipulated under Backward Areas Sub Plan during 12 th Five- Year Plan,
out of which Rs. 20575.67 lakh were actually spent under BASP. In 2017-18 and 2018-19, Rs. 5447.00
lakh and Rs. 5945.00 lakh respectively have been earmarked for the Backward Areas Sub Plan. Funds of
Rs. 5411.28 lakh and Rs.5939.81 lakh were actually spent under this programme during annual plan
2017-18 and 2018-19 respectively. (Refer Table No. III.9)
Table No. III.9
Himachal Pradesh
BASP Outlay and Actual Expenditure under 12th Five Year Plan and 2012-13 to 2018-19
(Rs. in lakh)
Year Outlay Expenditure
12th Plan 20650.00 20575.67
2017-18 5447.00 5411.28
2018-19 5945.00 5939.81
Source: Department of Planning, Government of Himachal Pradesh.

III.7.4 Tribal Area Sub Plan

Himachal Pradesh has tribal population living in Scheduled Areas as well as in the other areas. Districts
of Lahaul-Spiti, Kinnaur and Chamba have high concentration of Scheduled Tribe (ST) population. Total
ST Population constitutes 5.7 per cent as per 2011 Census.
The concept of tribal sub plan was adopted in the state, as elsewhere, from the beginning of the 5th Five
Year Plan, i.e. 1974-75. As per State planning policy of the Government 9% of the total State Plan outlay
is earmarked for Tribal Sub Plan every year. The State Planning Department communicates 9% ceiling of
State Plan outlays to the Tribal Development Department
For budgetary provision, a single consolidated demand has been adopted in the State since 1981-82. Such
an arrangement is very helpful in diverting funds from one scheme to another in the same major head and
from one major head to another. Such a single demand also ensures non-divertibility of Tribal Sub-Plan

49
funds outside the tribal area.
12th Five year plan period (2012-2017) has envisaged Rupees 2052 crore , out of which 61 % have been
stipulated for Economic sector, 34% for Social development and the rest 5% for General services. An
amount of Rupees 369 crore was actually spent under the TSP during 2013-14, out of which 28% funds
were spent on energy sector, 17% on transport and communication and 12% for education sector. (Refer
Table No III.10)
III.7.5 Scheduled Caste Area Sub Plan
A Special Component Plan (SCP) was formulated in 1979-80, which has been now renamed as Scheduled
Castes Sub Plan (SCSP). Himachal Pradesh has a quarter of population (25.19%) as Scheduled Castes
dwelling in all districts. In order to specifically provide support to SC population, SCSP was incorporated
in 5th Five Year Plan. The Scheduled Caste Sub Plan is specifically designed to channelize the flow of
benefits and outlays from the general sector in the state plan and from the union ministry of Social Justice
and Empowerment for the development of Scheduled Caste in physical as well as financial terms. The
Scheduled Caste Sub Plan is designed to help poor Scheduled Caste families through composite income
generating programmes. The Sub-Plan directly benefits the individuals/families and infrastructural
facilities in the habitation where Scheduled Caste concentration is 40% or more.
An actual expenditure of rupees 3377.75 crore were spent under SCSP plan in Himachal Pradesh, which
was more than the outlay of Rupees 2500 crore during the 11th Five-year plan. A significant proportion of
the actual expenditure was spent on Social development (62%). The 12th Five-Year Plan (2012-17) has
made an outlay of Rs.5636 crore, out of which 40% funds have been stipulated for social development,
giving priority for education and sanitation sector. A total of 60% funds have been allocated for economic
development sector out of which agricultural development and transport sector have been given priority.
An amount of Rs.1586.97 Crore was spent under SCSP during 2018-19, out of which 55.57%, 43.25%
and 1.18% funds were spent on Economic Sector, Social Development Sector and Other General Services
Sector respectively. (Refer Table III.10)

50
 Table No III.10
Himachal Pradesh
Percent Actual Expenditure under 12th Five-Year Plan and Annual Plan 2013-14
For Backward Area, Scheduled Castes and Scheduled Tribes
Sector Wise (Percentage)
Sector 12th Five Year Plan (2012- Annual Plan Annual Plan
17) Percent Outlay 2017-18 Percent Actual 2018-19 Percent Actual
Expenditure Expenditure
BASP SCSP TSP BASP SCSP TSP BASP SCSP TSP
Agricultural and Allied 7.30 11.86 8.99 6.93 12.06 11.98 7.08 12.89 12.60
Rural Development 0.00 8.27 6.17 0.00 2.08 2.73 0.00 1.83 2.62
Special Area Programme 0.00 0.00 7.59 0.00 0.00 5.42 0.00 0.00 4.90
Irrigation & Flood 0.35 11.98 6.54 0.43 6.31 5.70 0.46 6.21 5.79
Control
Energy 0.00 8.73 9.40 0.00 11.00 22.35 0.00 9.95 20.22
Industry and Mineral 0.85 0.12 0.60 0.50 0.27 0.08 0.53 1.90 0.66
Transport and 24.75 17.83 20.89 36.34 22.34 12.90 37.06 21.31 12.21
Communication
Science & Tech 0.00 0.37 0.05 0.00 0.17 0.05 0.00 0.19 0.11
General Economic 0.00 0.53 0.44 0.00 1.51 0.13 0.00 1.29 0.17
Services
ECONOMIC 33.24 59.68 60.71 44.20 57.57 62.01 45.14 55.57 59.30
SECTOR
Education & Sports 24.75 11.22 16.83 33.97 13.32 14.62 32.63 13.87 15.40
Health & Family 20.99 5.25 8.28 8.00 4.22 5.72 8.14 4.57 6.72
Welfare
Sanitation, Housing and 21.01 11.55 5.52 13.83 11.12 3.43 14.10 11.04 3.59
Urban Dev
Information and 0.00 0.03 0.03 0.00 0.01 0.03 0.00 0.01 0.03
Publicity
Welfare of SC/ST and 0.00 10.47 2.05 0.00 7.99 3.01 0.00 7.68 2.93
Other Backwards
Labour Welfare 0.00 0.00 0.02 0.00 0.00 0.03 0.00 0.00 0.02
Women & Child Social 0.00 1.58 1.46 0.00 5.45 5.18 0.00 6.08 5.87
& Nutrition
SOCIAL 66.76 40.09 34.19 55.80 42.11 32.02 54.86 43.25 34.56
DEVELOPMENT
OTHER GENERAL 0.00 0.23 5.10 0.00 0.32 5.97 0.00 1.18 6.14
SERVICES
All Expenditures (Rs 135.0 5636 2052 70.00 1435.83 513.00 75.55 1586.97 567.00
Crore)
BASP(Backward Area Sub- Plan), SCSP( Scheduled Caste Sub-Plan), TSP(Tribal Area Sub-Plan
Source: Department of Planning, Government of Himachal Pradesh.

51
III.7.6 Programme Covered under Rural Infrastructure Development Fund (RIDF)
The RIDF was set up by the Government in 1995-96 for financing ongoing rural Infrastructure projects.
The Fund is maintained by the National Bank for Agriculture and Rural Development (NABARD).
Domestic commercial banks contribute to the Fund to the extent of their shortfall in stipulated priority
sector lending to agriculture. The main objective of the Fund is to provide loans to State Governments and
State-owned corporations to enable them to complete ongoing rural infrastructure projects.28 It is a major
component of Annual Plan 2018-19 for building infrastructure to supplement growth in productivity. In
the Annual Plan 2018-19 an outlay of Rupees 650.00 crore has been proposed which constitutes 10.32%
of the total plan outlay. (Refer Table III.11)
Table No III.11
Component wise RIDF provisions for Annual Plan -2018-19

Sr. No. Component Proposed Outlay

Rupees Crore
1. Soil Conservation (Agriculture) 38.00
2. Minor Irrigation/FPW 114.00
3. Roads & Bridges 368.00
4. Rural Water Supply 130.00
Total 650.00
Source: Department of Planning, Government of Himachal Pradesh.

III.7.7 Finance Commission Award

Finance Commission Grants to Himachal Pradesh from 12th Finance Commission to 14th Finance
Commission are main source for rejuvenation of finance of the State (Refer Table No. III.12).
Table III.12
Award of 12 to 14th Finance Commissions
th

Head 12th FC Grants 13th FC Grants 14th FC Grants

Revenue Deficit Grants 10202.00 7889.00 40624.00

Share in Central Taxes 3203.00 11327.00 28225.00

Rural Local Bodies 147.00 560.00 1810.00
Urban Local Bodies 8.00 82.00 202.00
State Disaster Response 401.00 670.00 1173.00
Fund
Others 489.00 1164.00 0.00
14450.00 21692.00 72034.00
Source: Finance Department of Planning, Himachal Pradesh.

III.7.8 Externally Aided Projects (EAPs)

Externally Aided Projects play an important role in the economy of a Special Category State like
Himachal Pradesh to supplement the State resources. The Special Category States get 90% grant and
10% loan under the Externally Aided Projects. The State Government has given a very high priority for
the Externally Aided Projects (EAPs) in the resource mobilization strategy of the state. The State

52
Government is implementing Externally Aided Projects (EAPs) in the sectors of Forestry, Power,
Tourism, Horticulture, Skill, Urban Development, Agriculture etc. The implementation of these projects
would help in achieving the objectives of increasing productivity and raising the quality of life
especially of the rural masses and is expected to provide impetus for human development. An amount of
Rupees 561.15 crore have been spent in the annual plan 2018-19 under the EAP project (Refer Table
III.13)
Table No III.13
Himachal Pradesh
Components Wise Externally Aided Project
Total Outlay and Actual Expenditure Annual Plan 2013-14

Sector Wise Revised Cost Sharing Pattern Annual Plan Donor

Project Rs. Crore EAP State 2018-19 Agency
Power / 2845.00 77.00 23.00 365.00 ADB
Energy
Forest 308.45 85.00 15.00 17.86 KfW
Forest 800.00 80.00 20.00 0.00 JICA
Tourism 685.00 70.00 30.00 100.00 ADB
Agriculture 321.00 85.00 15.00 25.62 JICA
Horticulture 1135.67 80.00 20.00 49.23 World Bank
Urban 280.01 100.00 0.00 0.00 World Bank
Development
Skill 650.00 80.00 20.00 15.40 ADB
Development
Grand Total 7025.13 573.11
Source: Department of Planning, Government of Himachal Pradesh.

III.8 Research Questions Evaluated

Whether advocacy through dissemination and outreach of SHDRs is ensured to internalize public
expenditure for human development and social priority sectors by planners and implementers for
identified development programmes.
 Special efforts have been made to build capacity of state planners for devising strategies to
prepare priorities for the economic and social sectors leading to overall human development. In
fact separate fund allocations and actual expenditures stipulated under these sectors have been
operationalized during 10th, 11th and Annual plans under 12th Five year Plan. This strategy has
definitely increased actual financial expenditures for the prioritized economic and social sub
sectors especially transport, energy, sanitation and housing, education and health care.
Whether Capacity building of State Planners for human development, including building capacities in
making available disaggregated District level data has been accomplished
The capacity build among the state planners should have led to the availability of district level
disaggregated data on budget allocations and actual expenditures. This data would have helped to
measure the district wise outcomes of such allocations and actual expenditures on the human
development indicators. But unfortunately the state planners have not yet internalized the process

53
of providing district wise allocations and actual expenditures; hence measuring the impact of
financial expenditures on human development at district level is not possible. Thus the objective
of building capacities in making available disaggregated District level data has not been
accomplished.

54
 Chapter-IV: Status of Human Development
IV.I Human Development in Himachal Pradesh
Human resource development is the key to utilize the resources optimally in any society. Positive
contribution of public expenditure on provisions of processes of human development like; health,
education, employment, energy, transport, communication and special programmes for Scheduled Castes,
Scheduled Tribes and other backward population largely determine the outcomes of the human
development processes. In view of the above, decentralized budget allocations and monitoring of actual
performance of financial budgeting provided through both state and centrally sponsored programmes has
gained importance. The importance of public expenditure in the process of human development is well
recognised and has gained tremendous significance after Eighth Five Year Plan.
As already stated in the previous chapters, Himachal Pradesh has embarked on decentralized planning
approach under Five-Year Plans. The analysis of the actual expenditures under the Five Years plans
reflected several positive steps for strengthening the processes of human development. The present
section attempts to analyze the impact of such public provisioning of funds on the indicators of human
development.
Following indicators have been selected to measure the outcomes of human development in Himachal
Pradesh. These indicators have been measures at district level in order to examine the regional variations.
 Demographic Characteristics
 Education Development Characteristics
 Health related Indicators
 Women’s participation
 Sanitation, Safe Drinking Water and other Public Services
 Natural Resource Management
 Infrastructure: Connectivity and Road Network.

IV.2 Demographic Characteristics

Among the demographic indicators, growth rate of population, average size of households, percent urban
population, sex ratio of all ages, sex ratio below 6 years have been selected. Temporal variation of
decennial growth rate of population in Himachal Pradesh depicts significant decrease from 23.71 percent
in 1981 to 12.94 percent in 2001-2011 as compared to the national average. (Refer Table No.IV.1).
The decrease in the population growth rate has been achieved in spite of declining death rates and
insignificant out- migration from the state. Thus economic growth and development parameters are
essentially reflected through declining population growth by decreasing both births and death rate. This
reflects advanced stage of demographic transition model. A satisfying picture indicates that all the
districts have achieved lower decennial population growth rate as compared to the national average. The
decrease in the population growth rate has also translated into less household size population of 4.63
persons per household, which is one of the ideal condition for promoting growth generative policies for
the population. Except for Chamba district all the districts have around 4.60 household population size.
(Refer Table No.IV.2)
Percent urban population to total population shows insignificant changes in Himachal Pradesh since last
two decades. This is due to strong agriculture and horticulture base of the state. Urbanization although
considered as a requirement for development but it may not be construed as a negative indicator in case of

55
Himachal Pradesh owing to its location in Himalayas, where concentration of population at specific nodes
are not feasible. In fact, less urbanization in Himachal Pradesh is more positive to maintain the ecological
balance in this fragile eco-system.
Table No IV.1
Himachal Pradesh
Temporal Variation of Some Demographic Indicators
Percentage of rural/urban
Year Himachal India Himachal India population to total population
Pradesh Pradesh

Rural Urban
1981 23.71 24.66 973 934 92.39 7.61
1991 20.79 23.87 976 927 91.31 8.69
2001 17.54 21.54 968 933 90.20 9.80
2011 12.94 17.7 972 940 89.97 10.03
Source: (i) Census of India1991, 2001, Primary Census Abstract.
(ii) Census of India - 2011.
Table No IV.2
Himachal Pradesh- 2011

District Population Population Average Size Per Cent

2011 Growth Rate of Households Urban
2001-11 Population
Bilaspur 3,81,956 12.05 4.75 6.58
Chamba 5,19,080 12.63 5.07 6.96
Hamirpur 4,54,768 10.19 4.31 6.91
Kangra 15,10,075 12.77 4.46 5.71
Kinnaur 84,121 7.39 4.21 -
Kullu 4,37,903 14.76 4.62 9.45
Lahaul Spiti 31,564 ‐5.00 4.73 -
Mandi 9,99,777 10.92 4.56 6.27
Shimla 8,14,010 12.67 4.42 24.74
Sirmaur 5,29,855 15.54 5.40 10.79
Solan 5,80,320 15.93 4.74 17.60
Una 5,21,173 16.26 4.72 8.62
H.P. 68,64,602 12.94 4.63 10.03
Source: (i) Census of India1991, 2001, Primary Census Abstract.
(ii) Census of India - 2011.
IV.3 Sex Ratio
Sex ratio is considered as one of the powerful indicators to measure the social development and attitude
of the society towards gender justice and women status. Himachal Pradesh has constantly recorded more
balanced sex ratio since 1981, where as the national average of sex ratio has been declining constantly,
depicting Himachal Pradesh as one of the most developed state in terms of gender justice and women’s

56
empowerment. (Refer Table No. 1) District wise variations in the sex ratio of Himachal Pradesh have
been recorded. Kinnaur, Lahaul-Spiti, Shimla and Sirmour recorded lower sex ratio both in 2001 and
2011. Low sex ratio in these districts as compared to the state average can perhaps be associated with
variations in the sex selective mortality rates as these districts are located in far flung regions with least
accessibility and sex selective healthcare is still being promoted, which is also reflected by low sex ratio
for 0-6 years in these districts. Unfortunately, Himachal Pradesh has recorded lower sex ratio for (0-6
years) as compared to national average, which itself has very low sex ratio. Creating awareness among the
population to increase sex ratio below 6 years of age should be one of the major target during the 12 th
Five- Year Plan. (Refer Table No. IV.3)
Table No IV.3
Himachal Pradesh
Sex Ratio
District Sex Ratio All Ages Sex Ratio 0-6 Age Group
2001 2011 1991 2001 2011
Bilaspur 990 981 923 882 900
Chamba 959 986 965 955 953
Hamirpur 1099 1095 938 850 887
Kangra 1025 1012 939 836 876
Kinnaur 857 819 958 979 963
Kullu 927 942 966 960 962
Lahaul Spiti 802 903 951 961 1033
Mandi 1012 1007 968 918 916
Shimla 896 915 958 929 925
Sirmaur 901 918 973 934 928
Solan 852 880 951 900 899
Una 997 976 923 837 875
H.P. 968 972 951 896 909
India 933 940 945 927 914
Source: (i) Census of India1991, 2001, Primary Census Abstract.
(ii) Census of India - 2011

IV.4 Levels of Education Development

The role of education to meet basic learning needs of every person- child, youth and adult in shaping
human development have been emphasized through several cross cultural studies. Development
economists have shown that more educated and literate educated parents have healthier lives, reduced
fertility and less disease prone children. There has been significant positive impact of the quantity of
primary and secondary education (measured as enrolment ratios or average years of schooling) on
aggregate economic growth. The education needs comprise of both essential learning tools (such as
literacy, oral expression, numeracy, and problem solving) and the basic learning content (such as
knowledge, skills, values, and attitudes) which are required by human beings to be able to survive, to
develop their full capacities, to live and work in dignity, to participate fully in development, to improve
the quality of their lives, to make informed decisions, and to continue learning. The scope of basic
learning needs and how they should be met varies with individual countries and cultures, and inevitably,

57
changes with the passage of time. Refer: (Chabbott and Ramirez, 2000) 29 ; (Topel, 1999) 30 , (Weiner,
1991) 31 (Hannum and Buchmann, 2004 32 , Walter, 2000) 33 , (Stash and Hannum, 2001) 34 . (UNESCO.
2008)35, (Zutshi , 2006)36

IV.4.1 Educational Institution Access and Availability

The school education structure in India constitutes the primary stage (Class I-V), elementary/upper
primary stage (Class VI-VIII) and high and higher secondary stage (Class IX-XII). The Census of India
2011 reveals that despite a host of schemes and programmes, only 74 per cent of the Indian people were
literate (82 per cent men and 65 per cent women). However, Himachal Pradesh recorded better literacy
rate as compared to the national average. Access and availability are the two major constraints in
universalizing the education in India. Efforts have been made to open new schools in far flung areas so
that educational institution are made easily available within short distances. In a hilly state like Himachal
Pradesh access is challenging task as people live in small size hamlets which are far away from each other
due to terrain constraints. As per education department information the State had 15,368 primary, middle,
high and higher secondary educational institutes in 2017-18 under Education Department, whereas under
All Management, these Institutes are 18212. In Education Department, it translates to nearly 2.04
educational institutes per ‘000’ population. A significant variation was recorded in the availability of
schools per ‘000’ population among the districts. In case of districts falling in plain areas the distribution
was lower as population tend to cluster in few nodes, while it was high for districts falling within difficult

29
Chabbott, C. and Ramirez, F. O. 2000. Development and education. Hallinan, M. (ed.), Handbook of the
Sociology of Education. New York, Kluwer Academic, pp. 163–88.
30
Topel, R. 1999. Labour markets and economic growth. Ashenfelt, O. and Card, D. (eds), Handbook of Labor
Economics,Vol. 3C. Amsterdam, North Holland, pp. 2943–84
31
Weiner, Myron; (1991): The Child and the State In India, Child Labour and the Education Policy in Comparative
Perspective. Princeton University Press, Princeton.
32
Hannum, E. and Buchmann, C. 2004. Global educational expansion and socio-economic development: an
assessment of findings from the social sciences. World Development, Vol. 33, No. 3, pp. 1–22.
33
Walters, P. B. 2000. The limits of growth: expansion and school reform in historical perspective.
34
Schultz, P. T. 2002. Why governments should invest more to educate girls. World Development, Vol. 30, No. 2,
pp. 207–25.
35
UNESCO , EFA Monitoring Report 2008.
36
Zutshi,B. 2006, India Country Report – 2006, Global March against Child Labour and International Centre on
Child Labor and Education

58
terrain as people dwell in sparsely distributed hamlets. Thus government has taken due care to provide
more schools in difficult terrain districts to provide easy access to the population.
Another indicator of access and availability of educational institutes under Education Department was
worked out, which was number of schools per ‘00’ settlements (both rural and urban settlements). The
data indicates that 86 schools were available per ‘00’ settlements, which shows that government have
made all possible efforts to provide easy access and availability of education institutes to the people.
Kullu district has much higher availability of schools, while Hamirpur and Solan recorded lower schools
per ’00; settlements. (Refer Table No IV. 4)
Table No.IV.4
Himachal Pradesh
Schools Information 2018-19
District Number of Number of Schools per Schools per ‘00’
Schools* Schools* (All ‘000’ Settlements (2011
(Education Management) Population Census)
Department) (2019)
Bilaspur 847 1028 2.00 88.51
Chamba 1660 1835 2.87 148.88
Hamirpur 754 976 1.51 45.01
Kangra 2515 3148 1.49 69.36
Kinnaur 264 311 2.95 109.54
Kullu 1035 1221 2.07 324.45
Lahaul Spiti 251 259 7.85 89.64
Mandi 2448 2854 2.20 85.74
Shimla 2278 2663 2.61 83.87
Sirmaur 1456 1630 2.51 149.95
Solan 1094 1370 1.76 45.75
Una 766 917 1.41 96.35
H.P. 15368 18212 2.04 85.66
* Primary, Middle, High and Higher Secondary Schools
Source: SSA, Himachal Pradesh

IV.4.2 Teacher/ Pupil Ratio in Educational Institutions

Himachal Pradesh has also performed better in proving adequate number of teacher to pupil over a period
of time. Teacher/Pupil ratio has improved significantly in primary/ junior basic schools since 2003-04.
The teacher /pupil ratio in primary schools has gone down to 1:11 in the schools in 2018-19. Similarly,
the ratio has also improved for middle/ senior schools. However insignificant changes are recorded since
2003-04 in the teacher/ pupil ratio for high/ higher secondary schools and for colleges. This may be
attributed to large number of students enrolling in these institutions for higher education. But the ratio in
these higher education schools/ colleges seems to be within the norms. (Refer Table No. IV.5)

59
 Table No. IV. 5
Himachal Pradesh Teacher/ Pupil Ratio

Teacher/ Pupil Ratio

Year Primary / Middle/ Senior High/ Higher Colleges

Junior Basic Basic Secondary

2003-04 1:22 1:46 1:14 1:48

2004-05 1:22 1:20 1:13 1:43
2005-06 1:21 1:19 - -
2006-07 1.20 1.16 1:16 1:43
2007-08 1:19 1:12 1:16 1:40
2008-09 1:16 1:14 1:15 1:48
2009-10 1:16 1:15 1:14 1:42
2010-11 1:16 1:14 1:16 1:43
2011-12 1:16 1:13 1:19 1:46
2012-13 1:15 1:29 1:14 1:38
2013-14 1:14 1:28 1:13 1:46
2014-15 1:13 1:31 1:12 1:55
2015-16 1:13 1:32 1:11 1:59
2016-17 1:12 1:34 1:10 1:60
2017-18 1:11 1:32 1:05 1:59
Source: Economics & Statistics Department, H.P.

IV.4.3 General Literacy Rate

Literacy rate in Himachal Pradesh has recorded better results as compared to the national average for both
males and females. In fact, right from 1991 onwards Himachal Pradesh has improved literacy levels for
both men and women and as per 2011 Census data Himachal Pradesh has 90% literacy rate for men and
76% for women as compared to 82% for men and 65% for women for India. All districts of Himachal
Pradesh have recorded impressive literacy rates for both men and women as compared to the national
average. Even the far flung and inaccessible districts of Chamba, Kinnaur and Lahaul–Spiti have
performed better and improved the literacy levels continuously from 1991. The public finance
expenditures on education programmes under SSA and other state budgets seem to have played important
role in making the education accessible and enrolling students for education. (Refer Table No IV.6)

60
 Table No IV.6
Himachal Pradesh General Literacy Rate

District 1991 2001 2011

Male Female Total Male Female Total Male Female Total
Bilaspur 77.97 56.55 67.17 86.0 69.5 77.8 91.2 78.0 84.59
Chamba 59.96 28.57 44.70 76.4 48.8 62.9 82.6 61.7 72.17
Hamirpur 85.11 65.90 74.88 90.2 75.7 82.5 94.4 82.6 88.15
Kangra 80.12 61.39 70.57 87.5 73.0 80.1 91.5 80.0 85.67
Kinnaur 72.04 42.04 58.36 84.3 64.4 75.2 87.3 71.0 80.00
Kullu 69.64 38.53 54.82 84.0 60.9 72.9 87.4 70.9 79.40
Lahaul & 71.78 38.05 56.82 82.8 60.7 73.1 85.7 66.8 76.81
Spiti
Mandi 76.65 49.12 62.74 85.9 64.8 75.2 89.6 73.7 81.53
Shimla 75.96 51.75 64.61 87.2 70.1 79.1 89.6 77.1 83.64
Sirmaur 63.20 38.45 51.62 79.4 60.4 70.4 85.6 71.4 78.80
Solan 74.67 50.69 63.30 84.8 66.9 76.6 89.6 77.0 83.68
Una 81.15 61.01 70.91 87.7 73.2 80.4 91.9 81.1 86.53
H.P. 75.36 52.13 63.75 85.3 67.4 76.48 89.53 75.9 82.80
India 64.13 39.23 52.21 75.26 53.67 64.84 82.14 65.46 74.04
Source: (i) Census of India1991, 2001, Primary Census Abstract.
(ii) Census of India – 2011

IV.4.4 Levels of Education

Levels of education among the literates is a powerful indicator to measure the transition and retention rate
of the educated population continuing the higher levels of education. About 25% population have
education up to higher education and above levels, which includes 9% having education up to graduation
and above graduation levels. However technical education is very low as only 1% of the population have
technical diploma. Although the picture is better than the national average, still H.P is lagging in technical
education. Districts-wise education levels do not depict any significant variations from the state averages.
Thus, the benefits of extension of higher education have spread across all areas and sections of
population. (Refer Table No. IV.7)

61
 Table No IV. 7
Himachal Pradesh
Education Levels 2011
District Literate Per Cent Education Levels
Population Below Primary Middle Matric/ Hr. Non- Tec Gradu Un-
Pri. Sec Sec Tech Dip. ate & Specif
above ied
Bilaspur 284733 9.90 22.91 17.30 24.12 14.22 0.23 1.35 9.84 0.13
Chamba 313304 17.14 31.45 15.91 18.81 10.29 0.15 0.80 5.22 0.22
Hamirpur 349658 9.47 21.01 17.57 25.17 14.73 0.17 1.23 10.52 0.13
Kangra 1116992 10.27 22.90 17.20 24.89 14.77 0.16 1.14 8.54 0.14
Kinnaur 59182 17.57 24.27 15.88 19.09 12.83 0.06 0.80 8.55 0.96
Kullu 297038 16.87 27.14 17.04 18.47 11.68 0.08 0.59 7.95 0.17
Lahaul &
Spiti 21020 17.53 22.73 13.92 17.23 15.92 0.14 0.97 10.82 0.75
Mandi 705148 12.42 23.47 15.94 23.88 14.57 0.22 1.34 7.89 0.27
Shimla 600648 12.43 19.70 15.11 22.93 14.51 0.17 0.74 14.14 0.27
Sirmaur
356740 16.58 29.09 18.02 18.13 9.91 0.16 0.73 7.24 0.14
Solan 416417 12.05 22.29 18.13 22.99 12.66 0.21 1.37 10.07 0.22
Una
388833 11.84 23.09 17.51 25.22 12.75 0.19 1.39 7.92 0.09

H.P 4909710 12.45 23.69 16.84 22.97 13.49 0.17 1.09 9.10 0.20
Source: Census of India, Himachal Pradesh

IV.4.5 Gross and Net Enrolment Ratio at Primary, Middle, High and Higher Secondary Levels
Gross and Net enrolment ratio are a powerful indicator to measure the extent of enrollments at different
level, which also highlights the extent of dropout and retention rates. The role of educational access,
availability, community awareness, quality of education provided in the schools that motivates the parents
to enroll their wards in the schools and educational governance are reflected through these two indicators.
Gross and Net enrolment rates have been worked separately for primary, upper primary, secondary and
higher secondary levels on the basis of 2017-18 school records and projections of number of population in
the school going ages.
The results point out that the target of Gross enrolment rates have been achieved in all districts for both
boys and girls for the primary and upper primary levels. The Net enrolment rates are slightly behind in
some districts but are very close to the targets of 100% requirement.
Gross enrolment rates at secondary level are showing better results both for boys and girls across all the
districts which indicated that students from higher ages are now pursuing their education at these levels.
The efforts of the education department in making these students agree to enroll at secondary level even if
they are at higher ages are laudable. However, Net enrolment rate at secondary level is still lower at
around 60-65 percent. The far flung and inaccessible districts of Lahaul-Spiti and Kinnaur have lower
GER as compared to other districts for both boys and girls.

62
The picture of GER at higher secondary is varied among the districts. Districts located in the plains with
better road network and accessibility have higher GER as compared to the districts with difficult terrain.
The NER at higher secondary level is much less than the targets among all the districts, especially for
Kullu and Lahaul-Spiti districts. NER at higher secondary level requires further improvement. (Refer
Table No IV. 8-IV.11)
Table No. IV.8
GROSS and NET ENROLEMENT RATES 2018-19 Primary Level
GER NER
District Boys Girls Total Boys Girls Total
1. 2. 3. 4. 5. 6. 7.
1. Bilaspur 101.15 10068 100.93 99.54 99.44 99.49
2. Chamba 101.47 101.26 101.37 99.73 99.67 99.70
3. Hamirpur 101.71 101.59 101.66 99.74 99.79 99.76
4. Kangra 102.87 102.56 102.72 99.83 99382 99.83
5. Kinnaur 102.15 101.51 101.84 99.87 99.90 99.88
6. Kullu 102.50 101.85 102.18 99.71 99.59 99.65
7. Lahaul-Spiti 100.30 101.43 100.84 97.67 99.67 98.63
8. Mandi 101.34 101.18 101.26 99.83 99.89 99.86
9. Shimla 104.68 103.90 104.30 99.91 99.92 99.91
10. Sirmour 103.62 103.29 103.46 99.89 99.94 99.92
11. Solan 104.85 104.03 104.47 99.93 98.87 98.90
12. Una 101.67 101.85 101.75 98.40 99.15 98.75
Total 102.76 102.37 102.58 99.58 99.65 99.62

Table No. IV.9

GROSS and NET ENROLEMENT RATES 2018-19 Upper Primary Level
GER NER
District Boys Girls Total Boys Girls Total
1. 2. 3. 4. 5. 6. 7.
1. Bilaspur 102.53 103.23 102.86 98.57 98.95 98.75
2. Chamba 103.71 103.08 103.40 97.68 97.59 97.63
3. Hamirpur 104.46 104.36 104.41 98.43 98.39 98.41
4. Kangra 103.16 103.18 103.17 96.74 96.95 96.84
5. Kinnaur 103.11 103.12 103.12 96.49 96.48 96.49
6. Kullu 103.20 103.67 103.43 96.80 97.53 97.16
7. Lahaul-Spiti 91.32 101.75 96.45 84.72 93.37 88.97
8. Mandi 103.90 104.30 104.09 98.91 99.14 99.02
9. Shimla 101.25 100.70 100.99 93.07 93.74 93.39
10. Sirmour 103.43 103.02 103.23 95.07 95.43 95.24
11. Solan 101.41 100.47 100.98 91.83 92.52 92.15
12. Una 103.40 103.59 103.49 95.52 95.86 95.68
Total 102.95 102.87 102.91 96.07 96.47 96.26

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 Table No. IV.10
GROSS and NET ENROLEMENT RATES 2018-19 Secondary Level
GER NER
District Boys Girls Total Boys Girls Total
1. 2. 3. 4. 5. 6. 7.
1. Bilaspur 104.83 104.73 104.79 97.15 96.96 97.06
2. Chamba 109.11 108.15 108.65 93.89 94.44 94.15
3. Hamirpur 107.76 107.01 107.42 96.59 96.47 96.53
4. Kangra 109.29 109.68 109.47 94.54 94.93 94.72
5. Kinnaur 108.56 109.03 108.79 91.73 93.28 92.50
6. Kullu 109.31 109.16 109.24 93.04 93.80 93.41
7. Lahaul-Spiti 105.90 109.14 107.63 91.15 92.00 91.60
8. Mandi 106.65 105.62 106.15 96.56 96.73 96.64
9. Shimla 107.11 105.87 106.51 90.34 91.63 90.96
10. Sirmour 110.26 109.77 110.02 90.60 91.53 91.05
11. Solan 104.88 104.58 104.74 89.18 91.89 90.44
12. Una 109.76 108.47 109.17 93.74 93.79 93.76
Total 107.99 107.47 107.74 93.51 94.19 93.83

Table No. IV.11

GROSS and NET ENROLEMENT RATES 2018-19 Hr. Secondary Level
GER NER
District Boys Girls Total Boys Girls Total
1. 2. 3. 4. 5. 6. 7.
1. Bilaspur 83.72 86.83 85.21 77.62 80.28 78.89
2. Chamba 78.59 79.69 79.12 64.45 95.81 65.11
3. Hamirpur 89.68 90.44 90.03 80.55 81.37 80.93
4. Kangra 90.00 92.27 91.05 75.40 76.89 76.09
5. Kinnaur 80.17 81.41 80.81 67.95 70.71 69.37
6. Kullu 80.08 81.86 80.97 64.48 68.20 66.35
7. Lahaul-Spiti 89.29 85.10 87.00 62.30 64.90 63.72
8. Mandi 85.18 85.48 85.33 75.16 76.68 75.92
9. Shimla 81.17 80.92 81.05 67.28 69.28 68.27
10. Sirmour 76.71 78.12 77.41 60.89 62.87 61.87
11. Solan 82.35 83.20 82.76 69.60 72.31 70.89
12. Una 87.88 92.38 89.95 74.09 77.71 75.75
Total 84.42 85.63 85.00 71.50 73.31 72.37
Source: SSA, Himachal Pradesh

64
IV.5 Health Care and Family Welfare
Health should be viewed as not merely the absence of disease but as a state of complete physical, mental
and social well-being37. The determinants of good health are: access to various types of health services
and an individual’s choice and liberty to reproductive health system and lifestyle choices, personal, family
and social relationships. Quality health care is one of the most fundamental requisite for building
individual capabilities. Himachal Pradesh has a vast health infrastructure which is one of the best in the
country in terms of the availability of per capita health infrastructure. The Twelfth Plan envisages
strengthening the already existing infrastructure to ensure delivery of quality health service at the desired
time and place.
Health is one of the most important component of attaining quality human resource as health component
is directly associated with economic growth, development and productivity. Health quality is directly
related to health institutions access and availability, quality of health professional staff and modern
technology used in providing care for patients. Health care quality can be measured by the following
indicators.
 Distribution of health services measured through access and availability of health institutions
 Crude death rates, infant mortality rates and life expectation at birth
 Crude birth rates, Age specific fertility rates, total fertility rates
 Reproductive Healthcare and Anti-Natal care
IV.5 .1 Health Care Institutions Access and Availability
The district wise distribution of the medical institutes* and hospital beds shows variations among the
districts. Lahaul- Spiti and Kinnaur being located in difficult terrain and as a border district has sparse
population dwelling in small size hamlets. These all hamlets have been provided with basic health sub-
center facility. Number of medical beds again depicts variations among the districts. Una district
recorded the lowest hospital bed/ population ratio as compared to the State average. (Refer Table No.
IV.12)

37
Twelfth Five-Year Plan Document, Planning Commission, GoI.

65
 Table No IV.12
Himachal Pradesh Access and Availability of Medical Institutes 2018-19

District Medical Hospital Beds Medical Medical Hospital Beds Per

Institutes* Institutes Institutes Per Lakh
Per 000 Sq. Lakh Population (2011)
Kms Population
(2019)
Bilaspur 50 621 42.84 11.81 146.71
Chamba 57 1236 8.74 9.86 213.86
Hamirpur 40 720 35.78 8.00 144.01
Kangra 125 3327 21.78 7.39 196.74
Kinnaur 30 271 4.69 33.53 302.90
Kullu 38 806 6.91 7.62 161.55
Lahaul & Spiti 21 204 1.52 65.67 637.96
Mandi 113 2178 28.61 10.16 195.75
Shimla 155 3029 30.21 17.78 347.52
Sirmour 59 786 20.88 10.19 135.75
Solan 61 931 31.51 9.80 149.58
Una 41 594 26.62 7.54 109.20
H.P 790 14703 14.19 10.47 194.94
*Hospital, Dispensaries, CHC/RH, PHCs (It does not include Sub Centres)
Source: Economics & Statistics Department, H.P.

Himachal Pradesh recorded 59.56 medical institutes per lakh population, which showed decline in the
availability of medical institutes as compared to 2001. The decline can be attributed to recorded increase
in population as per Census 2011 data. The medical institutes have increased from 3791 in 2001 to 4084 in
2018, but population increase during 2001-11 has outpaced the increase in medical institutes. The data
reflects that fewer medical intuitions have been increased from 2001 to 2018 and has not kept pace with
increasing population. However, number of medical institutes per ‘000’ square kilometer and number of
beds per ‘000’ population have increased from 2001 to 2018. The data clearly reflects that capital
investment in terms of making more medical institutes and hospital beds available has not been
accomplished. In spite of this, the availability of medical institutions and hospital beds is in conformity
with the appropriate norms and even better than the national average. (Refer Table No IV.13)

66
 Table No IV.13
Himachal Pradesh Access and Availability of Medical Institutes
Year Medical Institutes Medical Institutes per Number of Hospital Beds per
*per lakh ‘000’ Square ‘000’
Population** Kms. Area Population**
2001 62.37 68.09 1.62
2002 62.47 68.20 1.66
2003 62.44 68.17 1.66
2004 62.52 68.26 1.66
2005 62.54 68.27 1.65
2006 62.36 68.08 1.62
2007 62.55 68.29 1.60
2008 62.80 68.56 1.68
2009 62.77 68.53 1.51
2010 62.77 68.53 1.51
2011** 55.63 68.60 1.34
2012** 55.75 68.74 1.41
2013** 55.84 68.85 1.41
2014** 56.23 69.33 1.44
2015** 56.45 69.60 1.46
2016** 57.15 70.39 1.68
2017** 58.44 71.97 1.71
2018** 59.56 73.36 1.92
Source: Economics & Statistics Department, H.P./ Health & Family Welfare Department, H.P.
*Medical Institutes includes Allopathic, Ayurveda, Primary Health Centers, Community Health Centers,
Sub Centers, All Dispensaries- Allopathic, Ayurveda, Homeopathic ** As per Population of 2011
Census.

IV.6 Health Care Indicators

Healthcare indicators reflect the productive, sexual and health related characteristics of population. Some
of the indicators selected to measure the health of population are;
 Crude Death Rate, Infant Mortality Rate and Expectation of Life at Birth.
 Birth Rates and Fertility Rates.
 Total Fertility Rate
 Reproductive Health

IV.6.1 Crude Death Rate, Infant Mortality Rate

Crude death rate and infant mortality rates are important indicators to depict the health care services of
any region. Himachal Pradesh has performed better in case of both these indicators as compared to the
national average. The State has achieved the target fixed for both crude death rate and infant mortality
rate. Crude death rate was 6.6 per ‘000’ population in Himachal Pradesh as compared to 6.3 for India in
2017. Infant mortality rate in Himachal Pradesh has shown significant decline from 50 per ‘000’ live
births in 2006 to 22 per ‘000’ live birth in 2017. (Refer Table No IV. 14)

67
 Table No. IV. 14
Himachal Pradesh
Crude Death rates and Infant Mortality Rates (Per ‘000’ Live births)
Year Death Rate Per ‘000’ Population Infant Mortality Rate

H.P India Himachal Pradesh India

1990 8.5 9.7 69

1991 8.9 75 80
1992 8.8 67
1993 8.6 63
1994 8.6 67
1995 8.7 61
1996 8.0 62
1997 8.1 63
1998 7.7 64
1999 7.3 62
2000 7.2 9.0 60
2001 7.1 8.7 54 66
2002 7.5 8.6 52
2003 7.1 8.4 49
2004 6.8 8.3 51
2005 6.9 8.2 49
2006 6.8 8.1 50 57
2007 7.1 47 55
2008 7.4 44 53
2009 7.2 45 50
2010 6.9 8.0 40 47
2011 6.7 7.4 38 44
2012 6.7 7.4 36 42
2013 6.7 7.0 35 40
2014
2015 6.6 6.5 28 37
2016 6.8 6.4 25 34
2017 6.6 6.3 22 33
Source: SRS Bulletin, Registrar General of India.

IV.6.2 Expectation of Life at Birth

Expectation of life at birth again depicts better performance for Himachal Pradesh state as compared to
the national average. Female expectation of life at birth has depicted significant improvement which is in
sync with any developed society. (Refer Table No IV. 15).

68
 Table No IV.15
Himachal PradeshExpectation of life at Birth
All India Himachal Pradesh
Period Male Female Male Female
1. 2. 3. 4. 5.
1976-80 52.2 52.1 58.1 54.9
1981-85 55.9 55.9 58.5 62.9
1986-90 57.7 58.1 62.4 62.8
1993-97 60.4 61.8 64.6 65.2
1995-99 60.8 62.5 65.1 65.8
1997-01 61.3 63.0 65.5 66.1
1998-02 61.6 63.3 65.7 66.3
1999-03 61.8 63.5 65.8 66.6
2000-04 62.1 63.7 66.1 66.8
2001-05 62.3 63.9 66.3 67.1
2002-2006 62.6 64.2 66.5 67.3
2006-2010 64.6 67.7 67.7 72.4
2009-2013 65.8 69.3 69.9 73.1
2010-2014 66.4 69.6 69.3 74.1
2011-2015 66.9 70.0 69.1 75.2
2012-2016 69.4 75.5 67.4 70.2
Source: Economics & Statistics Department, H.P./ Health & Family Welfare
Department, H.P.

IV.6.3 Birth Rate and Fertility Rate

Crude Birth rates and fertility rates are also important indicators to measure the health status of society
especially for women. Fertility rates indicate social development in terms of women’s empowerment to
determine their marital age and productivity behaviour. In the process of social and economic
development both birth rates and fertility rates show decline as was observed from the developed
societies. Crude birth rate for Himachal Pradesh was 15.8 per ‘000’ population in 2017 as compared to
20.2 per ‘000’ population for India. Thus the state has achieved the target in reducing the crude birth rate
effectively and the decline in the birth rate has been continuous since 2000 onwards. (Refer Table No
IV.16)

69
 Table No. IV. 16
Himachal Pradesh
Crude Birth Rate (Births per ‘000’ population)
Year Birth Rate per ‘000’ Population
Himachal Pradesh India
1990 27.4
1991 28.5
1992 28.1
1993 26.7
1994 26.3
1995 25.2
1996 23.0
1997 22.6
1998 22.6
1999 23.8
2000 22.1 24.7
2001 21.2 24.2
2002 20.7 23.7
2003 20.6 23.2
2004 19.2 22.8
2005 20.0 22.3
2006 18.8 22.0
2007 17.4 22.6
2008 17.7 22.2
2009 17.2 22.5
2010 16.9 22.1
2011 16.5 21.8
2012 16.2 21.6
2013 16.0 21.4
2014
2015 16.3 20.8
2016 16.0 20.4
2017 15.8 20.2
Source: SRS Bulletin, Registrar General of India.
IV.6.4 Total Fertility Rate
Total fertility rates of 2.1 indicate the replacement rates have been achieved in any society. The Himachal
Pradesh State has attained a TRF of 1.7 for combined areas, where as it was 1.2 for urban areas and 1.7
for rural areas in 2012. The TFR for India was 2.4 for combined areas, 1.8 for urban areas and 2.6 for
rural areas in 2012. As per NFHS-4, The Himachal Pradesh State has attained a TRF of 1.9 for combined
areas, where as it was 1.4 for urban areas and 1.9 for rural areas in 2016. The TFR for India was 2.2 for
combined areas, 1.8 for urban areas and 2.4 for rural areas in 2016. The figures clearly indicate that
Himachal Pradesh has already achieved below replacement rates, which is higher than the targeted and
expected rates. (Refer Table IV.17)

70
 Table No. IV.17
Total Fertility Rates of H.P. and India (since 1988 SRS)
Himachal Pradesh India
Year Rural Urban Combined Rural Urban Combined
1988 3.7 2.5 3.7 4.3 3.1 4.0
1989 3.3 2.3 3.2 4.2 2.8 3.9
1990 N.A. N.A. N.A. 4.1 2.8 3.8
1991 3.2 2.0 3.2 3.9 2.7 3.6
1992 3.1 2.2 3.1 3.9 2.6 3.6
1993 2.9 2.2 2.8 3.8 2.8 3.5
1994 3.0 2.0 2.9 3.8 2.7 3.5
1995 2.8 1.9 2.7 3.9 2.6 3.5
1996 2.5 1.8 2.4 3.7 2.4 3.4
1997 2.4 1.8 2.4 3.6 2.4 3.3
1998 2.4 1.8 2.4 3.5 2.4 3.2
1999 2.5 1.8 2.4 3.5 2.3 3.2
2000 2.3 1.8 2.3 3.5 2.3 3.2
2001 2.2 1.8 2.2 3.4 2.3 3.1
2002 2.1 1.8 2.1 3.3 2.2 3.0
2003 2.1 1.7 2.1 3.2 2.2 3.0
2004 2.2 1.4 2.1 3.3 2.1 2.9
2005 2.2 1.5 2.2 3.2 2.1 2.9
2006 2.1 1.4 2.0 3.1 2.0 2.8
2007 1.9 1.4 1.9 3.0 2.0 2.7
2008 2.0 1.4 1.9 2.9 2.0 2.6
2009 1.9 1.3 1.9 2.9 2.0 2.6
2010 1.9 1.3 1.8 2.8 1.9 2.5
2011 1.8 1.2 1.8 2.7 1.9 2.4
2012 1.7 1.2 1.7 2.6 1.8 2.4
2016* 1.9 1.4 1.9 2.4 1.8 2.2
Source: (i) SRS Bulletin, Registrar General of India. Health & Family Welfare Department, H.P.
(ii) *NFHS-4(2015-16)
IV.7 Reproductive Health and Ante Natal Care
Reproductive health was undertaken as a major component in the National Health Mission – Government
of Health and Family Welfare Programme across all states of India. Under this programme the following
activities were undertaken in the State of Himachal Pradesh.
 Janani Suraksha Yojana : To reduce maternal and infant mortality, institutional deliveries are
being promoted by providing cash assistance to pregnant women under Janani Suraksha Yojana
(JSY). Though institutional deliveries have increased in rural (39.7 to 68 per cent) and urban
areas (79 per cent to 85 per cent) over the 2005–09 period. Himachal Pradesh has performed well
in terms of providing institutional mechanism of safe delivery system and Ante-Natal care.
 Maternal and Child Care: The programme envisages for ensuring health reproductive health for
women by providing free treatment for pregnant women and infants upto 1 year of age especially
complete immunization drive for (DPT, Polio, BCG and measles) for new born children. More
than one hundred thousand children are being immunized annually with 100% coverage. (Refer
Table No. 18)

71
  Accredited Social Health Activist – ASHA
One of the key components of the National Rural Health Mission is to provide every village in
the country with a trained female community health activist ASHA or Accredited Social Health
Activist. ASHA is usually selected from the village itself and is accountable take care of the
reproductive health of mothers and children. ASHA worker is fully trained to work as an interface
between the community and the public health system. To further enhance the skill of ASHAs,
they are also being trained on Home Based New Born Care and have been provided HBNC kits.
This is to improve new born care practices at the community level and early detection and referral
of sick new born babies in first 42 days of life. The state has strong ASHA support across all
villages, which has clearly brought down maternal mortality rates (MMR) as well are infant
mortality rates.
 Other Programmes
Other programmes include nutrition mission for lactating mothers and infants through
Anganwadi’s by proving nutrition meals for “Anaemia Free Himachal”. Under this programme
weekly free iron folic supplements are given to lactating mothers. In addition, a number of
programmes relating to children, women, old, infirm and handicapped are being implemented.

Table No. IV.18

Immunization in Himachal Pradesh
Number of Children Immunized
Year DPT OPV(Polio) BCG Measles
1. 2. 3. 4. 5.
2000-01 138294 138243 142716 131434
2001-02 135246 135089 140786 133451
2002-03 134296 134397 144019 133908
2003-04 136347 136367 141459 130748
2004-05 133505 133499 136114 131098
2005-06 131548 131288 134050 128306
2006-07 129173 129140 133212 126284
2007-08 127471 127475 129882 125056
2008-09 130842 130839 134334 122206
2009-10 127350 127358 131262 123899
2010-11 121582 121330 128046 116789
2011-12 113040 113559 119455 112573
2012-13 113566 113642 120481 110370
2013-14 112212 112300 115335 108719
2014-15 108419 108515 108406 106932
Source: National Rural Health Mission, H.P./ Health and Family Welfare Department, Himachal
Pradesh

IV.8 Women’s Empowerment and Participation

One of the major outcomes of human development is changing attitude to women and gender justice,
showing equal respect to both gender groups. Participation of women in governance issues especially
identifying their courses of development and choosing their paths for health, education and sustenance of
economic opportunities has been the major hallmark of developed societies. Indian constitution took a

72
vital step towards providing equal opportunities to both gender groups in governance by adopting 73 rd and
74th constitutional amendment. The amendment empowers people at Gram Panchayat level to identify
their development issues and specific financial allocations were made so that they can oversee and
monitor these developmental activities. Special provisions were made for women, by reserving specific
seats in these Gram Panchayats, Panchayat Samiti’s and Zila Panchayat. Himachal Pradesh has reserved
50% seats in all these three tiers of administration levels for women to have equal participation in
identifying development projects related to the processes of human development and also having close
monitoring of these developmental projects. Himachal Pradesh election results for 2016-20 term,
demonstrated that a significant number of women were even elected on non-reserved position in all the
three tiers of lower level of administration set up. In fact, at all the three levels the proportion of elected
women candidates- Panchayat members as well as Pradhan/ Up-Pradhan/ Chairperson are higher as
compared to their men counterpart. Thus women have achieved empowerment in real sense in Himachal
Pradesh in governance issues. These results have clearly influenced gender justice and favorable
healthcare and educational development for women (Refer Table No IV.19 and IV. 20).
Table No. IV. 19
Himachal Pradesh- 2016-2020 Term Members of Rural Local Bodies

District Gram Panchayat Panchayat Samiti Zila Parishad

Total Reserved Total Reserved Total Reserved
Posts for Posts for Posts for
Women Women Women
Bilaspur 1081 616 97 50 14 7
Chamba 1697 990 136 70 18 9
Hamirpur 1377 803 125 65 18 9
Kangra 4682 2705 363 186 55 28
Kinnaur 355 332 45 15 10 5
Kullu 1310 757 103 63 14 7
Lahaul & Spiti 207 0 30 15 10 5
Mandi 3003 1738 241 118 36 18
Shimla 2159 1264 181 94 24 12
Sirmour 1504 865 120 62 17 8
Solan 1443 826 118 61 17 9
Una 1541 881 114 58 17 9
H.P. 20359 11777 1673 857 250 126

73
 Table No IV. 20
Himachal Pradesh- 2016-2020 Term Panchayat Pradhan

District Gram Panchayat

Total Posts Reserved for Women
Bilaspur 151 77
Chamba 283 144
Hamirpur 229 116
Kangra 748 378
Kinnaur 65 33
Kullu 204 102
Lahaul & Spiti 41 21
Mandi 469 237
Shimla 363 183
Sirmaur 228 115
Solan 211 107
Una 234 118
H.P. 3226 1631
Source: H.P. State Election Commission.

IV.9 Women Employment

The status of women participation and employment in economic activities is comparatively much higher
in case of Himachal Pradesh. Female participation rate was 44.81 percent for Himachal Pradesh, as
compared to 58.68 percent for men. However, if we compare the rates at all India level than Himachal
Pradesh has better participation rates for women. This could be attributed, as major economic activities
are related to agriculture, horticulture and forestry and livestock rearing activities, where women work in
large numbers. Work participation rate did not show any significant variations among the districts of
Himachal Pradesh. (Refer Table No. IV. 21)

74
 Table No. IV.21
Himachal Pradesh- 2011
District Per Cent Per Cent Workers
Workers to
Population
Male Female Cultivators Agriculture HH Others
Labourers Industry
Bilaspur 57.87 49.86 61.77 2.01 1.24 34.97
Chamba 60.76 52.47 66.88 3.13 1.54 28.45
Hamirpur 54.69 51.83 60.80 3.65 1.38 34.17
Kangra 53.79 35.74 44.88 8.12 2.32 44.68
Kinnaur 73.22 59.17 58.63 4.51 1.68 35.18
Kullu 66.01 56.60 73.26 4.60 1.01 21.13
Lahaul & Spiti 64.88 56.97 58.19 2.96 0.87 37.98
Mandi 59.72 54.85 67.74 2.76 1.25 28.25
Shimla 60.85 44.30 57.96 6.06 1.85 34.13
Sirmaur 61.31 43.65 65.32 3.83 1.90 28.95
Solan 61.54 40.04 47.29 3.44 1.66 47.61
Una 53.70 28.64 39.38 9.10 1.59 49.93
H.P. 58.68 44.81 57.93 4.92 1.65 35.50
Source: Census of India

IV.10 Women Participation in Mahatma Gandhi National Rural Employment Guarantee Act.
Government of India sponsored a centrally financed scheme to provide job opportunities in the rural area
for the unemployed workers. The scheme is fully funded by the Central government, but the role of Gram
Panchayat is significant to identify the unemployed person and also provide the nature of work to be
undertaken. A minimum of 100 days’ work is guaranteed under this scheme. The appraisal of the scheme
across the country slows variations in performance depending upon the active participation of the elected
member for the scheme. The performance of MGNREGA is good in case of Himachal Pradesh. This is
probably due to active participation of elected members at Gram Panchayat level, supported by the district
administration. The performance in terms of generating works ‘Mandays’ have been exceptionally good,
however variation was found in terms of generation of ‘Mandays’ among the districts. Better performance
districts were Mandi, Chamba and Kullu, whereas Lahaul-Spiti and Kinnaur were poor performed
districts. (Refer Table No 22)
In spite of the variation in the performance of generating ‘Mandays’ the participation of women has been
strong across all districts. More women than men were provided jobs under this scheme. This could be
attributed to more women being elected in the Gram Panchayats. Thus women’s empowerment and
participation has been exceptionally good in Himachal Pradesh, which directly reflects better human
development in the state. (Refer Table IV.22)

75
 Table No. IV.22
Himachal Pradesh MGNREGA Performance for Women
District 2015-16 2016-17 2017-18 2018-19

Mandays Mandays Mandays Mandays Mandays Mandays Mandays Mandays

Generated Generated Generated Generated Generated Generated Generated Generated
(In Lakh) by (In Lakh) by (In Lakh) by (In Lakh) by
Women Women Women Women
(In lakh) (In lakh) (In lakh) (In lakh)
Bilaspur 8.55 4.84 12.43 7.16 10.29 6.17 11.84 7.45
Chamba 24.72 12.42 37.14 17.95 34.87 17.61 47.98 24.49
Hamirpur 7.24 5.44 10.05 7.63 8.99 6.95 11.12 8.71
Kangra 29.82 21.45 37.68 26.78 37.20 26.41 47.94 35.55
Kinnaur 4.26 2.80 4.10 2.80 3.44 2.33 7.04 4.85
Kullu 12.73 7.05 17.32 9.41 18.32 9.96 20.49 11.57
Lahaul & 1.71 1.14 1.38 0.94 0.97 0.65 1.06 0.71
Spiti
Mandi 53.01 39.22 65.67 48.44 56.04 40.63 72.25 53.42
Shimla 14.87 7.53 18.38 9.59 19.01 9.82 20.51 10.81
Sirmaur 9.17 3.88 15.62 6.03 14.74 5.71 21.78 8.81
Solan 5.11 2.21 7.10 3.10 7.55 3.32 9.80 4.57
Una 6.49 4.22 9.72 6.39 8.62 5.95 13.38 9.48
177.68 112.20 236.59 146.22 220.04 135.51 285.19 180.42
(63.15%) (61.80%) (61.84%) (63.26%)
Source: Ministry of Rural Development, GoI.
IV.11 Status of Infrastructure Development
Infrastructure development is closely linked to outlays and actual expenditures under Five Year Plan. The
infrastructural development provides necessary impetus for human development. Some of the important
infrastructure developments related to human development are:
 Connectivity and Road Network
 Sanitation, Safe Drinking Water and Public Services
IV.11.1 Connectivity and Road Network
The economic growth needs support of a reliable and efficient transport system. Himachal Pradesh being
in the lap of Himalayas with mountainous and difficult terrain is mainly served by road transport with
more or less absent rail and air transport services. Any rapid growth in the economy and transformation of
resources into economic and human wealth requires connectivity and communication services. Road
Transport plays pivotal role in the development of economy. Road network length was 37,586 kilometre
as per 2017-18 data as compared to 34,647 kilometres in 2012-13. Right from 11th Five-Year Plan strong
emphasis has been made for road network development. Himachal Pradesh has recorded 65.78 kilometres
of road length per ‘00’ square kilometres in 2016-17. District-wise variation was observed in the
availability of road network length per ‘00’ settlements, and per lakh population. Bilaspur, Hamirpur,
Solan and Sirmour were better connected districts in terms of these indicators. Poor connected districts
were Chamba, Kullu, Shimla and Lahaul-Spiti. (Refer Table IV.23)

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 Table No.IV. 23
Himachal Pradesh Road Network and Connectivity Indicators2016-17
District Road Length* Road Length Road Road Villages/
(In Kms) per ‘00’ Length Length per Settlements
Settlements per ‘00’ Lakh 2011 Census
Sq. Kms Population
(2019)
Bilaspur 1731 180.88 148.33 408.95 953
Chamba 3299 295.87 50.58 570.81 1110
Hamirpur 1914 114.27 171.20 382.84 1671
Kangra 6030 166.30 105.07 356.57 3617
Kinnaur 1098 455.60 17.15 1227.27 241
Kullu 1937 607.21 35.20 388.25 314
Lahaul Spiti 1262 450.71 9.12 3946.59 280
Mandi 5740 201.05 145.32 515.89 2850
Shimla 5519 203.20 107.56 633.21 2705
Sirmaur 3110 320.29 110.09 537.11 968
Solan 3006 125.72 155.27 482.97 2383
Una 1977 248.68 128.38 363.44 790
H.P 36623 204.13 65.78 485.57 17882
* Road Length includes Motorable, Jeepable and Less than Jeepable
Source: Economics & Statistics Department, H.P.

IV.11.2 Sanitation, Safe Drinking Water and Other Public Services

Sanitation, safe drinking water, electricity supply complement each other and contribute to a sound state
of health for population and are inter-related with human services. Better sanitation and hygiene and
treated safe drinking water supply creates conditions for improved health leading to higher productivity
and efficiency. The Twelfth Plan had envisaged to achieve the status of the state being 100% open
defecation free State and shifting focus to other aspects of sanitation requirement. Himachal Pradesh was
declared ‘Open Defecation Free’ (ODF), the country’s second state, after Sikkim to get this status. All
the households in the state have toilet facility. Among bigger states, Himachal Pradesh is the first state to
become ODF. All 12 districts of the state have been covered as ODF districts.
In case of drinking water service within the house premises, nearly 56 % households had this facility.
Variations in the service of drinking water facility at house premises were found. In case of Himachal
Pradesh many dwelling and villages are located in the difficult terrain. They get drinking water from
streams and the quality of this water is good because they are directly fed by glaciers without having any
pollution up to the household premises. Thus 55% coverage is considered better in case of Himachal
Pradesh. The State Government also envisages provision of drinking water at the rate of 70 LPCD in all
the rural areas of the State against the national norm of 55 LPCD as mentioned in the Twelfth Five Year
Plan document. It would also be the endeavour of the State Government to provide drinking water supply
to all the 53,201 habitations of the State by the end of the Twelfth Five Year Plan. There were 10,725
habitations in the State at the beginning of 12th Five-Year plan period that were without the provision of
drinking water.

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As per 2011 Census information, 96.8% households had electricity facility in Himachal Pradesh. All
districts except, Lahaul-Spiti have more than 95% households with electricity facility. In 2017-18, all
17882 inhabited villages have been electrified i.e. 100% electrification.
Food security in a hilly state with limited accessibility is essential to maintain the supplies of essential
food items during connectivity disruptions. The supplies are ensured through public distribution system
for providing basic food requirement like; rice, wheat, sugar supply. All these basic food requirements are
provided by ‘Fair Price Shops’. In 2017-18, total ‘Fair Price Shops’ were 4932. The distribution of ‘Fair
Price Shops’ per settlement as per data of Census 2011 of settlements was 27.49 per ‘00’ settlements.
Kullu has recorded higher number of ‘Fair price shops’ per ‘00’ settlements, where as Solan, Shimla,
Lahaul-Spiti and Kinnaur recorded lesser number of these shops. (Refer Table No. IV.24)
Table No. IV. 24

Himachal Pradesh Public Service Infrastructure

District Fair Price Shops Fair Price Shops per '00'

(2017-18) Settlements (2011 Census)

Bilaspur 235 24.56

Chamba 490 43.95
Hamirpur 294 17.55
Kangra 1065 29.37
Kinnaur 61 25.31
Kullu 443 138.87
Lahaul &Spiti 65 23.21
Mandi 782 27.39
Shimla 568 20.91
Sirmaur 338 34.81
Solan 302 12.63
Una 289 36.35
H.P 4932 27.49

IV.12 Natural Resource Management

Himachal Pradesh is one of the ecologically sensitive State with 66.52 percent square kilometre of forest
area. This is most preserved carbon free state of the country. The state has used all possible abilities and
prudence in managing the natural resources. Several measures have been taken by government and people
to maintain the pristine natural ecological balance. Several forest areas have been declared as National
and preserved natural parks to reduce the human intervention and exploitation in these national parks.
The State’s previous plans have perpetually strived to enhance forest and other natural resources through
increasing forest cover and conserving the already existing resources. Himachal Pradesh has the
distinction of being one of the first States in the country to have taken decisions in the direction of
conserving its environment. Himachal Pradesh has been the first State in the country to have put a
blanket ban the felling of green trees in the State. District wise distribution of forest covers indicates

78
Chamba, Kinnaur, Lahaul-Spiti, Shimla, Kullu, Sirmour have more than 50% area under forests and the
areas under forests in these districts has been maintained during last one decade. In fact the forest cover
has increased in these districts.
The Twelfth Plan period envisages to see a comprehensive review of the State’s forest policy. The forest
policy needs a reorientation to ensure that excessive emphasis on the conservation of forest resources
does not adversely affect the livelihood options of the rural and tribal communities. It would also seek to
ensure that the growth and expansion of tourism, as an industry do not take place at the cost of
environment.
Alternative arrangements have been provided to people to use LPG gas, electricity and other non
pollution based energy for cooking and lighting purposes. kerosene and LPG cylinders are essential
requirements for the state to reduce the exploitation of green cover in the state. This has indirectly
increased the quality of health of people which is also reflected by high expectation of life at birth in
Himachal Pradesh. As already discussed the public distribution system in terms of ‘Fair price shops’ per
‘00’ villages was as high as 23 for the state. LPG gas and kerosene is being distributed to households
through the network of these ‘Fair Price Shops’.
LPG consumers were more than 100% indicating, more than one consumer per household in the state.
This indicates that conscious efforts were made to provide supply of LPG gas to households, so that forest
and other green cover is not used for cooking purpose. Similarly, electricity connections have been
provided to 96.8 per cent households. The distribution of electricity to households was found distributed
across all districts. (Refer Table No. IV.25)

Table No. IV.25

Himachal Pradesh Natural Resource Management Indicators

District Forest Area Per Cent Forest LPG Per Cent HH Per Cent
In Kilometres Areas to total Consumers With Electricity HH With
2017-18 Area 2017-18 2017-18 (In 2011 Census. Electricity
lakh) 2017-18
Bilaspur 428 36.68 0.73 98.4 100
Chamba 5,030 77.12 0.82 94.2 100
Hamirpur 219 19.59 1.21 99.1 100
Kangra 2,842 49.52 4.00 98.1 100
Kinnaur 5,093 79.57 0.36 91.5 100
Kullu 4,952 89.99 1.17 95.6 100
Lahaul& 10,133 73.21 0.10 83.9 100
Spiti
Mandi 1,860 47.09 1.89 97.5 100
Shimla 3,418 66.61 2.24 95.6 100
Sirmaur 1,843 65.24 0.86 94.3 100
Solan 728 37.60 1.50 97.2 100
Una 487 31.62 1.16 96.6 100
H.P. 37,033 66.52 16.04 96.8 100

79
IV.13 Research Questions Evaluated
Whether effective human development actions through informed decisions and human development
strategies have been incorporated in the financing framework in Himachal Pradesh
 Effective human development actions in terms of improving demographic, social and economic
characteristics have been accomplished through financial allocations and actual expenditures on
human development sub-sectors. (like education sector, health sector, road connectivity, energy
and power sector, natural resource regeneration and women’s empowerment through Panchayati
Raj. These financial allocations and actual expenditures have reflected in decreased population
growth rate, reduction in average household population size, decline in death rates ( both crude
and infant), increase in expectation of life at birth (both men and women), reduction in General
and Total fertility rate, presence of overall balanced sex ratio, better literacy rates ( both men and
women), higher gross and net enrolment rates at all levels ( primary, middle, higher secondary
and higher education levels).

80
 Chapter V: Focused Group Discussion Findings

V.1 Focused Group Discussion Sample Size and Its Characteristics.

Five districts, 18 Gram Panchayats and 72 Focused Groups (four from each Gram Panchayat) were
selected for detailed FDGs survey. Criterion selected for districts were actual expenditure incurred in
education, health, transport and energy sub-sectors. Within the districts selected accessibility level and
proportion of Schedules Castes and Scheduled Tribe population were considered for selection of Gram
Panchayats. Four Focused Groups selected from each selected Gram Panchayats were
Selection of Focused Groups from Each Gram Panchayat
 Women aged 18-54 years (10-12 members) selected randomly
 Adults (Male) aged 18-65 (10-12 Members) selected randomly
 Children (both boys 6 and girls 6) selected randomly
 All members of Panchayat (including males/ female, General/ SC/ ST/ OBC) 10-12 members

The FGDs were conducted in the districts of Bilaspur, Shimla, Solan, Hamirpur and Mandi. These
districts represent the different relief and socio-economic condition and actual financial expenditures
incurred for various human development sectors in the state. These districts also cover multiple and
complex socio-economic conditions of the state population dwelling in different geographical locations in
terms of topography and physical conditions. Six blocks namely Jhandutta, Narkanda, Basantpur, Solan,
Sujanpur and Sandhol were selected for the FGDs surveys. These blocks represent different physical,
cultural and social characteristics that represent the whole state. Eighteen Gram Panchayats (GP) were
selected for the detail FGDs. Four GPs from Bilaspur, ten GPs from Shimla, two GPs from Mandi and
one GP each from Solan and Hamirpur were selected for detailed survey. In all 72 Focused Groups (FGs)
were selected, four from each GPs. From each of the selected GPs, four Focused Groups (FGs) were
selected for detailed survey. The selected FGs were
 Gram Panchayat members
 Women members
 Adult members
 Children members

A total of 184 Panchayat members (101 males and 83 females) participated in the detailed survey from all
GPs. Similarly, 175 women, 205 men, 123 boys and 107 girls participated in the detailed survey. (Refer
Table No. V.1).
A detailed questionnaire was prepared for all FGDs to initiate the discussion among the selected groups,
but all the FGDs members were free to share any other information, which they felt were important (Refer
Focused Groups Discussion Pointers /questionnaire Annexure I-IV).
The questionnaires were just pointers to initiate the discussion, as other aspects from the respondents were
also covered in the survey. Both men and women investigators were given appropriate training and
capacity building strategies before conducting the FGDs. Efforts were made to create good rapport with
the Panchayat members and other elected members in the selected Gram Panchayats so that people feel
free to participate in the discussions. Appropriate knowledge of ethical values was shared with the

81
 investigators before conducting the survey. All participants were informed about the aims and objectives
of the survey and they were requested to participate voluntarily without any force or coercion.
Table No.V. 1
Selected Sample Size for Focused Group Discussion
District Block Gram Focused Groups
Panchayat GP WG AG CG
No Members No Members No Members No Members

M F B G
Bilaspur Jhandutta Galiyan 1 7 3 1 8 1 9 1 5 4
Kalol 1 6 4 1 7 1 12 1 6 4
Gadhavi 1 5 4 1 9 1 13 1 7 5
Kulzayar 1 4 5 1 8 1 9 1 6 5
Koseria 1 5 4 1 12 1 10 1 7 4
Shimla Narkanda Kumarsain 1 7 3 1 11 1 11 1 6 7
Sihal Narkand 1 6 4 1 10 1 9 1 5 6
Basantpur Basantpur 1 6 5 1 9 1 8 1 5 6
Mandholghat 1 6 4 1 8 1 11 1 6 7
Neen 1 5 5 1 9 1 16 1 6 5
Shakrori 1 7 5 1 10 1 15 1 7 6
Baldeyan 1 6 4 1 11 1 14 1 8 7
Ghaini 1 4 6 1 9 1 12 1 7 8
Mashobra 1 5 5 1 12 1 13 1 8 6
Solan Solan Solan 1 5 6 1 10 1 10 1 9 7
Hamirpur Sujanpur Jangal 1 7 5 1 11 1 9 1 8 6
Mandi Sandol Sandhol 1 6 5 1 12 1 11 1 9 7
Datwar 1 4 6 1 9 1 13 1 8 7
ALL 18 101 83 18 175 18 205 18 123 107
Source: Field Survey Conducted in Himachal Pradesh

V.2 Field Survey Information on Fund Allocation, Expenditure and Utilization

The field survey conducted among the selected Gram Panchayats indicate that financial allocations were
directly made to the Gram Panchayats under MGNREGA, Indira Awas, Rajiv Awas, Haryali, Financial
Commissions, NBA, Relief Grant, Guru Ravidas Yojana, Mukhayamantri Aadarsh Gram Yojana, SDP,
BKBNY, Sampurna Awas Yojana, Scheduled Castes Yojana, Zila Parishad Yojana, 14 th Financial
Commission and Sampurna Swachhata Abhiyan programmes. Majority of the funds above Rs.50 lakh
were allocated and spent under the MGNREGA by all the selected Gram Panchayats. Two Gram
Panchayats has spent between Rupees 25-50 rupees under Zila Parashad Funds; One Gram Panchayat had
spent up to Rs.15 lakh for ‘Haryali’ Programme and all other Gram Panchayats has spent below Rupees
10 lakh for the above stated programmes. All Gram Panchayats were happy with the release of funds
without any difficulty and they stated that the funds were released within one-week period. (Refer Table
V. 2)

82
 Table No. V.2
Abstract of Information from Gram Panchayats
Financial Allocations Provided for Gram Panchayats

Names of Scheme Actual Allocations Spent during Time period taken to release
last three years funds(in weeks)

Above 25-50 10-15 Below Below 1-3 3-6 Above

50 Lakh Lakh 10 one weeks weeks 6
Lakh Lakh week weeks
MGNREGA 18 1
Indira Awas 18 1
Rajiv Awas 18 1
Haryali 1 3 1
13th Financial Aayog 18 1
NBA 18 1
Relief 3 1
TSC 1 1
Guru Ravidas Yojana 2 1
Mukhayamantri 1 1
Aadarsh Gram Yojana
SDP 18 1
CDPO 1 1
BKBNY 2 1
Sampurn Awas Yojana 1 1
Scheduled Caste 1
Yojana
Zila Parishad 2 1
14th Financial 18 1
Sampuran Swachhata 1 1
Abhiyan

The respondents indicated that several infrastructure development works were accomplished through
these developmental projects, which directly contributed towards human welfare measures. The
developmental works completed included land Improvement, road improvement, digging of well, pond
construction, Kurli construction, goat grazing area fencing, rain harvesting tank, school boundary wall
construction, sport stadium construction, Construction of Mahila Mandal Bhawan, installation of
computer with furniture at Gram Panchayats, renovation of boundary wall, cattle fencing, repairing of
PHC, crematorium sheds, house construction, toilet construction, construction of community halls, solar
energy development. (Refer Table No V.3)

83
 Table No. V.3
Abstract of Information from Gram Panchayats
Financial Allocations Provided for Gram Panchayats
Names of Scheme Major Activities undertaken under each Major hurdles/ problems
Schemes faced while implementing
the Scheme
MGNREGA Land Improvement, Route improvement,
Digging of well, pond Construction, Kurli
Construction, Goat Fencing, Rain Harvesting
Tank, Boundary Wall, Sport stadium, Mahila
Mandal Bhawan, Installation of Computer with
 Irresponsibility of
furniture, Renovation of Boundary Wall, Cattle
departmental
fencing, Repairing of PHC, Crimination Shed
Employee
Indira Awas Home Construction, (SC category)
 No hurdle
Rajiv Awas Home Construction-General and BPL Family
 Main Issue of NOC
Benefits
problem related to
Haryali Check dam, well digging, Pound, Plantation
Land
etc.(SHG Group)
 Filtration of Drinking
13th Finance Commission Well, Pound etc. construction
water
NBA Toilet Construction for all Category
 Insufficient Fund
Sampurna Awas Yojana Community Hall
 Maintenance of Road
Relief Security for Soil reform, House construction
Problem
TSC Toilets construction for school
Guru Ravidas Yojana Construction of Route, drainage system
Mukhayamantri Aadarsh Linkage of road and construction
Gram Yojana
SDP Construction of Bhawan, Community centre,
Repairing of PHC
CDPO Construction of Boundary wall of school Majority of respondents
and stakeholders were
satisfied with the work.
VKBNY(Vikas Pay jan Route for general Public Several routes in the
Sahayog) mountainous regions
have been developed
satisfactorily
Scheduled Caste Up Yojana Community Hall Satisfactory but demand
for more such community
centers.
Zila Parishad Repairing of PHC and Road maintenance Stakeholders were happy
as it helped to reduce the
time for such repairs
14th Finance Commission Pound construction, Solar Energy light Satisfactory

84
V.3 Gram Panchayat Initiatives for Infrastructure Development
A discussion with the FDGs of Panchayat members, Women’s group and Adult men groups indicated that
Gram Panchayat elections have been regularly held with transparency and people’s participation in the
election process has been highly satisfactory. The women reservation of 50% members in the Gram
Panchayats and Zila Panchayats has been appreciated. Women have been elected even from non reserved
quota in many of these Gram Panchayats indicating women’s participation level in the governance
system. Participation level in the Gram Panchayat meetings has been satisfactory. Several infrastructure
developments have been identified by the members after seeking views from the community. Funds
allocated to the Gram Panchayats have been effectively utilized by a majority of Gram Panchayats.
Members expressed high level of satisfaction for the timely release of funds from respective departments.
Infrastructure at the Panchayat offices was satisfactory. Developmental works related to road
connectivity, construction of drains, sanitation works and waste collection were taken as priority works in
most of the Gram Panchayats. MGNREGA has been major activity of the Gram Panchayats for poverty
alleviation. This scheme was appreciated by majority of Gram Panchayats. However, some difficulty was
also expressed especially shortage of raw material and labour. Members felt department should look into
these issues regularly. Job opportunity for women has been created in many Gram Panchayats especially
small scale handicraft development programmes. (Refer Table No. V.4 to V.14)

V.4 Education Levels

Discussion with FDGs(Panchayat Members, Women’s Group, Adult Group and Children Group) among
the selected Gram Panchayats indicate that Himachal Pradesh has achieved good results in developing
school and college education infrastructure. Education access and enrolments for both gender groups were
appreciated by all respondents. All children in the school going ages have been enrolled in the schools.
Drop-out rates are insignificant. However, availability of education institutes in inaccessible areas was
also stated by the respondents in very few cases. Respondents expressed high levels of satisfaction for
education services including availability of qualified teachers. Children respondents also appreciated the
level of infrastructure available in the schools especially toilets, drinking water facility, quality of mid-
day meals, healthcare services in schools, play fields.
Some of the suggestions for improving quality of education were as follows.
 More rooms is required because of shortage of rooms in some school were observed as at presents
separate classrooms for each class were not found in few schools.
 Shortage of teachers was also found in high and higher secondary schools.
 Some students do not attend schools during rainy season due to poor road connectivity. Even bus
facility for students is not easily available.
 Healthcare services, medicines and play ground facilities are not available among many schools.
 Paucity of science labs were found in may high and higher secondary schools.
 Students also expressed that books are not available in time.
 Short-age of medicine.

V.5 Healthcare Services

Although health indicators like infant mortality rate, crude death rate and expectation of life at birth have
shown significant improvement in Himachal Pradesh, but respondents were not happy with the quantity
and quality of the health services. Respondents stated that only basic health services are available, but

85
specialized healthcare is poor. Infrastructure at the health centres, hospitals and health institutes are not
adequate. Availability of doctors both basic services and for specialized services were very poor. There is
severe shortage of lady doctors. Medicines were not easily available and people had to travel long
distances to purchase even basic medicines.
Reproductive health services were appreciated by the women groups, especially the work and dedication
of ASHA workers. Institutional delivery system has strengthened yet there is a scope for its improvement
in difficult terrain regions. (Refer Table No 4-14)

V.6 Village Infrastructure

Respondents were satisfied with the basic infrastructure development through several developmental
funds made available by Gram Panchayats. (Refer Table No 4-14)

86
 Table No. V.4
Abstract of Information from Gram Panchayats Perception of FGD
Names of Scheme Percent Respondent FGDs
Yes No General Remarks
Education 100% 0 Yes
 Whether all people get its benefit 100% 0 Yes
 Whether all children enrolled in schools 100% 0 Generally yes but in
 Whether education services available near by few cases it needs
 Whether sufficient teachers in school support
 State quality of teaching – Good 0 100% Shortage of Teachers
 Are you satisfied with level of education? 100% Generally Yes
100% Yes
Health 50% 50%
 Whether all people getting health services 0 100% No, very far
 Whether education services available nearby 0 100%- Shortage of Doctors
 Sufficient doctors/ staff in health institution No specially Lady doctor
 Available facilities in hospitals
0 100% Shortage of PHC and
No Medicine
Gram Panchayat Manpower/ Infrastructure Gram Panchayat Manpower/
Whether members selected as per norms of reservation Infrastructure
Peoples Participation Level 20%-yes 80%-No
Good Peoples Participation Level
Satisfactory 50%-50%
Poor 0%
0%
Panchayat Infrastructure
Panchayat Infrastructure
Good
80%, No facility of Drinking water
Satisfactory
0%
Poor
0%
Village infrastructure
Village infrastructure
60% 40%
Roads
75% 25% less
Drains
Sanitation/ waste Collection 75% 25% less
100% Problem in winter
Electricity season
20% 80% shortage of
Health
staff

87
 Table No. V.5
Abstract of Information from Women FGDs
Major Development Projects Major Activities undertaken Major hurdles/ problems faced
undertaken by under each Schemes while implementing the Scheme
Govt./ NGOs/ Gram
Panchayats
JSY( janani Surakshya Caring of women
Yojana)
MGNREGA Land Improvement, Route
improvement, Digging of  Irresponsibility of
well, pound Construction, departmental Employee
Kurli Construction, Goat  Shortage of teachers in
Fencing, Rain Harvesting schools
Tank, Sport stadium, Mahila  Shortage of staff at PHC
Mandal Bhawan, Installation  Main Issue of NOC
of Computer with furniture, problem related to Land
Renovation of Boundary
Wall, Cattle fencing,
Repairing of PHC,
Crimination Shed
Matriya Shakti Yojana Sewing Centre, Training, Satisfactory. Women were
Centre, Mahila Mandal appreciative of this Yojana.
Beti Ho Anmol Safety of female child Satisfactory Results
ASHA Workers Health activity Good Initiatives, supported by all
PM Sadak Yojana Road connectivity to gram This Yojana has provided access
panchayat with many remote villages.
SSA Mid-Day meal is provided Satisfactory

88
 Table No V. 6
Abstract of Information from Women FGDs
Schemes/ Activities Undertaken for Women in Gram Panchayat

Major Development Projects Major Activities undertaken Major hurdles/ problems/

undertaken by under each Schemes Positive Aspects faced
Govt./ NGOs/ Gram Panchayats for while implementing the
women Scheme
Education Access Enrollment 100%  Irresponsibility of
Healthcare Services Caring of Women under departmental
ASHA and Benefit Rs 700/- Employee
under JSY  Shortage of staff at
Poverty Alleviation Ration, benefit to BPL family Hospital and doctors
and Awas is provided,  Shortage of Teachers
Employment under in some school
MGNERGA  Forest Land NOC
Employment Opportunities- MGNERGA Project and Problem
Sewing Centre, Goat fencing  FC & FRA Rule are
and Training Centre not Good, Fund
Other Activities of Infrastructure Problem
development  Road construction  Toilets Problem
 Road Construction  Indira Awas
 School Construction construction
 Housing under Indira Awas  Construction of school
 Latrine / Toilet  Toilets construction
 Drinking Water

89
 Table No V. 7
Abstract of Information from Women FGDs
Perception of FGD
Names of Scheme Percent Respondent FGDs
Yes No General Remarks
Education Education Yes, Women
 Whether all people get its benefit 100% stakeholders were
 Whether all children enrolled in satisfied with
100%
schools education services
100% and quality of
 Whether education services available
near by No education provided
 Whether sufficient teachers in school in these schools.
100% Good
 State quality of teaching – Good Teachers were
100% responsive to the
 Are you satisfied with level of
satisfaction needs of students.
education?
Health Health No Facility at all,
 Whether all people getting health 100% One PHC should be
services 20% less there
 Whether Health services available
nearby 50% less
 Sufficient doctors/ staff in health
institution 80% less
 Available facilities in hospitals
Gram Panchayat Manpower/ Infrastructure Gram Panchayat Manpower/ Infrastructure
Whether members selected as per norms of 100%, Open sitting, motivation by GP,
reservation Administrative by People
Peoples Participation Level Peoples Participation Level
 Good
100%
 Satisfactory
 Poor
Panchayat Infrastructure
Panchayat Infrastructure
100%
 Good -
 Satisfactory -
 Poor Village infrastructure
100%
Village infrastructure
 Roads 100%
 Drains
 Sanitation/ waste Collection 100%
 Electricity 100%

90
 Table No V.8
Abstract of Information from Women FGDs Perception
Perception Related to General Remarks

Marriage Age Marriage Age

 Men 21
 Women 18 or up 20
Children Children
 Average Children 1 or 2
 Spacing of Children 2 years ,3-5 years
 Sex Preference None
 Whether facilities available forNutrition for  No Balance and Nutrition diet is
Lactating Mothers provided and it should be imposed.
 No facility of delivery of children
 Delivery of Children in Health Institutes  Yes and done proper in time
 Inoculation / Vaccination

Facilities at Health Centers/ Hospitals Facilities at Health Centers/ Hospitals

 Security of the pregnant lady and
 Maternity related Issues Delivery facility should be at
Panchayat level, A lady doctor is also
there and After delivery an amt. of
Rs.10000/- should be provided to
 Child birth mothers.
 Other healthcare in hospitals  Child caring should be done carefully
 Free treatment for economic poor
section people and good doctors.

Governance and Participation Governance and Participation

 Women’s Participation in Gram Panchayat 100%
 Violence and Cruelty against women
Strict action should be taken.
 Work Participation under different programmes
100% Participation
 Any Issues raised by Women
At least one PHC should be at Panchayat level
with all facility in it, Schools are very far away
and therefore there should be fear from Tiger
and bear, Individual Hospital for Gram
Panchayat

91
 Table No V.9
Abstract of Information from Men FGDs
Major Development Projects Major Activities undertaken Major hurdles/ problems faced
undertaken by under each Schemes while implementing the Scheme
Govt/ NGOs/ Gram
Panchayats
Indira Awas Home Construction Satisfied with the work but
Rajiv Awas Home Construction community were unhappy with the
NBA Toilet Construction criterion selected for identification.
Sarv Sikasha Abhiyan Imparting education to all It should be more transparent.
children under aged(6-14),
Mid-Day meal is provided
JSY( Janani Surakshya Caring of women
Yojana)
MGNREGA Land Improvement, Route  Irresponsibility of
improvement, Digging of departmental Employee
well, pound Construction,  Shortage of Material and
Kurli Construction, Goat labour in MGNERGA
Fencing, Rain Harvesting  Main Issue of Forest land
Tank, Sport stadium, Mahila NOC problem
Mandal Bhawan, Installation  Insufficient Fund
of Computer with furniture,  Problem of Drinking water
Renovation of Boundary and Drainage problem
Wall, Cattle fencing,
Repairing of PHC,
Crimination Shed
Matri Shakti Yojana Sewing Centre, Training, Satisfied
Centre, Mahila Mandal
Beti Hai Anmol Safety of female child Highly Satisfied
ASHA Workers Health activity Good Initiative community highly
supportive.
PM Sadak Yojana Road connectivity to gram Good initiative. Many remote
panchayat villages have been connected.

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 Table No. V. 10
Abstract of Information from Men FGDs
Schemes/ Activities Undertaken for Men in Gram Panchayat
Major Development Projects undertaken Major Activities Major hurdles/ problems/
by undertaken under each Positive Aspects faced
Govt/ NGOs/ Gram Panchayats for Schemes while implementing the
women Scheme
Education Access Enrollment 100%
Healthcare Services Caring of Women under
ASHA and Benefit Rs
700/-under JSY  Irresponsibility of
Poverty Alleviation Ration, benefit to BPL departmental
Employment Opportunities- family and Awas is Employee
provided, Employment  Shortage of
under MGNERGA Material and labour
MGNERGA Project and in MGNERGA
Sewing Centre, Goat  Shortage of
fencing and Training teachers in school
Centre  Shortage of
Other Activities of Infrastructure  Road Doctors.
development construction
 Road Construction  Awas
 School Construction construction Good Initiative.
 Housing under Indira Awas  Construction of Community highly
 Latrine / Toilet school supportive.
 Drinking Water  Toilets
construction

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 Table No. V. 11
Abstract of Information from Men FGDs
Perception of FGD
Names of Scheme Percent Respondent FGDs
Yes No General Remarks
Education Education Yes, stakeholders
were satisfied with
 Whether all people get its benefit 100% education services
 Whether all children enrolled in 100% and quality of
schools No education provided in
 Whether education services No these schools.
available near by Teachers were
100% Good responsive to the
 Whether sufficient teachers in
100% needs of students
school
satisfaction
 State quality of teaching – Good
 Are you satisfied with level of
education
Health Health  No Facility at all,
 Whether all people getting health 50% yes One PHC should
services No 50% less be there
 Whether Health services available  Medicine should
nearby 50% less be provided at
 Sufficient doctors/ staff in health 80% less home for
institution Cancer/TB Patients
 Available facilities in hospitals
Gram Panchayat Manpower/ Infrastructure Gram Panchayat Manpower/ Infrastructure
Whether members selected as per norms of
100%, Open sitting, motivation by GP,
reservation
Administrative by People
Peoples Participation Level
Good Peoples Participation Level
Satisfactory 100%
Poor
Panchayat Infrastructure Panchayat Infrastructure
100%
Good
Satisfactory
Poor

Village infrastructure
Village infrastructure
 Roads 100%
100%
 Drains
100%
 Sanitation/ waste Collection
100%
 Electricity

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 Table No. V. 12
Abstract of Information from Men FGDs
Perception
Perception Related to General Remarks

Marriage Age Marriage Age

Men 21-25
Women 18 or upto 20
Children Children
Average Children 2
Spacing of Children 3-5 years
Sex Preference
Not provided
 Whether facilities available for Nutrition for Balanced diet should be provided and
Lactating Mothers Vitamins on behalf of Govt., Awareness to
the pregnant women
 Delivery of Children in Health Institutes No, it should be and qualified lady doctors
should also be there
 Inoculation / Vaccination Done in proper time
Facilities at Health Centers/ Hospitals Facilities at Health Centers/ Hospitals
It should be there. Need of lady doctors and
 Maternity related Issues
delivery facility at gram panchayat level.
Caring should be better and proper
 Child birth
Not better

 Other healthcare in hospitals

Governance and Participation Governance and Participation

 Men’s Participation in Gram Panchayat 100% Contribution
There should be law and strict action should
 Violence and Cruelty against women
be taken
100% contributions in work participation
 Work Participation under different
programmes Lack of medicine and requirement of lady
Doctor and no facility at all related to health.
Delay in progress from Govt. side and
 Any Issues raised by Men
Destroy of harvest from Animals,
Maintenance of Link Road

95
 Table No 13
Abstract of Information from Children (6-18 years) FGDs
Information Yes No If Yes Major Reasons / Remarks
Whether
Boys Girls
Whether Children Out-of-School No A few(one of two) because
of no earning of their
parents
School Education Facility in G. Panchayat School Education Facility in G. Panchayat
 Access to Schools 100% and better
Infrastructure in Schools Building
Infrastructure in Schools
-Very Good/Satisfactory/Poor
Building
 Toilet Very Good
 Drinking Water
Very Good
 Black Boards
 Books Very Good
 Play field Very Good
 Sufficient Teacher Very Good
 Mid-day meals
Satisfactory Shortage of teachers
 Quality of mid-day meals
Very Good
 Health service if falls sick in
schools Very Good
Good
 Whether any children drops outs No Sometime 1-2 children
 Quality of teaching Very
Good
 Gram Panchayats Role for Very Good
Education Very Good -Playground for Basket ball and Badminton games,
 State Development Activities for Science Lab, Library
School Very Good
 Building of Schools Satisfactory
 Extension of Rooms Very Good
 Building of Toilets Good
 Drinking water facilities More rooms is required because of shortage of rooms in school.
Shortage of Teachers. Road should be pucca and Treatment
 Any Other Specify facility should be there in school. Enlarge the playground. Science
lab should be there. Books are not available in time, shortage of
medicine. There should be school bus facility from govt. side,
There should be a separate English medium school. Separate
classes for Boys and Girls above 5th class, shortage of laboratory
and sports facility, There is demand of ITI, Demand of Cricket
Stadium, free treatment of children in Pvt. Hospitals, Construction
of old drinking Yojana, Furniture Problem, Schools are very far
away due to this there should be terror/fear from Animals like
tiger, bear etc.

96
 Table No. V.14
Abstract of Information from Children FGDs Information

Information Remarks
Yes
Yes Satisfactory. Community
Does Schools have PTA, VEC participates in such meetings
Yes Majority of children stated
Do teacher come to schools regularly teachers were responsive to
their requirements
Quality of teaching
Very Good Satisfactory

97
 Chapter VI: Linkages and Outcomes of Expenditures on Human
Development
VI.1 Context and Significance
The present chapter examines linkages and relationship between financial allocations, actual expenditures
and appropriate management like; good governance with the outcomes of processes of human
development in Himachal Pradesh. It has been observed the planned development initiatives,
decentralised planning and higher expenditures on economic sectors like transport and communication,
energy have significantly contributed towards achieving high scores on the indicators of human
development.
As already stated one of the basic conditions for Human Development (HD) is development of the people
through building human capabilities of the people by improving their living conditions and increasing
their active participation in the processes that shape their lives. It encompasses broader and multifaceted
approaches that includes; the human resource development through appropriate and effectively monitored
financing, along with the basic needs for developing human skills as well as creating conducive
conditions for human welfare approach.38
Appropriate and monitored financing for processes contributing to human development is a very critical
aspect for ensuring that public policies become concrete realities and that the poor and other vulnerable
sub-populations are supported by the state, enabling them to become empowered beings, capable of
realising their inherent potential in a participatory and democratic context. In view of the above,
strengthening of state pans for human development has attained significance, since 8 th Five-Year Plan
period. To formalise this approach, the Planning Commission and United Nations Development
Programme (UNDP) project (2004-09) aimed beyond the mere preparation on of Human Development
Reports (HDRs) for the states to concentrate developing capacities of States to operationalize (HD) and
make it an integral tool in the state and district planning processes. Under this project, state plan processes
and dialogue were intended to be strengthened to focus more on human development concerns.
In view of the above, decentralized budget allocations and monitoring of actual performance of financial
budgeting provided, through both state and centrally sponsored programmes has gained importance for a
number of reasons. The importance of public expenditure in the process of human development is well
recognised.
As discussed in the Chapter-II of this report, the state of Himachal Pradesh has depicted significant
progress in the economy as annual growth rate of economy (both during the Five Year Plans and annual
Plans) has increased significantly as compared to the national average especially after Ninth Five Year
plan (1997-02). Trends in the growth rate of Gross Domestic Product were higher as compared to the
neighbouring States. The contribution of Domestic Product has significantly increased for secondary and
tertiary sectors during the last two decades, signifying changes in the employment opportunities in these
sectors and a corresponding increase in the average income and investment rates.

38
UNDP and Planning Commission-GOI, October 2010, Human Development in India : Analysis to Action:
Publication based on reports from partner State governments; compiled and edited by Pia Lindstrom.

98
Himachal Pradesh State being a ‘Special Category State’ ever since its formation in 1971 is financially
dependent on Central Government funds. One of the major challenges faced by Himachal Pradesh state is
the fiscal management and creation of financial capital for the developmental activities. The state
requires to generate financial resources for processes of economic and human development to broaden the
budget base for Social and economic development. The government is conscious of the precarious
financial situation and thus all steps are being taken to reduce unproductive expenditures, generate new
resources, impose financial discipline and accelerate development through promotion of tourism and
horticulture and also enhance the incomes of the state through sale of hydro-power, for which power
projects have been executed expeditiously. Fiscal management has also improved as actual revenue and
per capita revenue has increased due to development in infrastructure sector.
VI.2 State Economy and Decentralization Planning
The growth of the State’s economy has been extra-ordinary as compared to other neighbouring states with
similar physical, topographical, social and economic conditions. The growth rate till the Sixth Plan period
was half as compared to the national average. From the Seventh Plan period (1985-90), the state has
depicted higher economic growth rate as compared to the national average and the state has maintained
the growth rate in spite of its weakness in the development of manufacturing sector due to geographical
location, difficult topography and inaccessibility in major areas of Himachal Pradesh. After 2000, the
economy has shown a shift from agriculture sector to industries and services as the percentage
contribution of agriculture and allied sectors in total State Domestic Product (SDP) has declined from
58.56 percent in 1970-71 to 13.44 percent in 2018-19. On the other hand, the contribution of secondary
sector to SDP has increased from 16.73 per cent in 1970-71 to 43.60 per cent in 2018-19.
Several efforts were made under the UNDP- Planning Commission programme to create essential
environment at the state level to specify annual budgets that could contribute development of human
quality and also provided all necessary infrastructural support to transform the quality of human
development. In this direction state planning departments were sensitized to allocate funds judiciously for
balanced regional development, covering various social and economic sub sectors across all regions. A
decentralised planning approach was adopted, where Panchayats (Lowest tier of administration) had the
power to identify the development activities which were in sync with their requirement and adequate fund
allocations were provided for such development programmes.
The state also focussed on the development agenda for weaker sections dwelling in the far-flung regions
by utilizing the funds effectively through balance regional development and good governance measures.
The basic objective is ensuring equitable growth and development processes so that human development
and improvement of quality of population is ensured. The purpose is to create necessary opportunities for
inclusiveness, and sustainability at the grassroots level. The Decentralized Planning process was initiated
in a phased manner and the steps taken in this direction to ensure adequate involvement of people and
their representatives in the decision making process. Implementation of third tier of administration – the
Panchayati Raj institution made this possible after the promulgation of 73 rd and 74th amendment of the
constitution. In addition to the schemes already in progress by the respective departments, some schemes
are specifically implemented through decentralized planning programme. The district planning cell plays
a pivotal role in reviewing the implementation of all these Decentralized Planning Programmes.
Special efforts have been made to build capacity of state planners for devising strategies to prepare
priorities for the economic and social sectors leading to overall human development. In fact separate fund
allocations and actual expenditures stipulated under these sectors have been operationalized during 10 th,
11th, 12th Five Year Plans and subsequent Annual Plans. This strategy has definitely increased actual

99
financial expenditures for the prioritized economic and social sub sectors especially transport energy,
sanitation and housing, education and health care services.
VI.3 Focused Group Discussion Findings
The field survey conducted among the selected Gram Panchayats indicate that financial allocations were
directly made to the Gram Panchayats under MGNREGA, Indira Awas, Rajiv Awas, Haryali, 13 th
Finance Commission, NBA, Relief Grant, Guru Ravidas Yojana, Mukhayamantri Aadarsh Gram Yojana,
SDP, BKBNY, Sampurna Awas Yojana, 14th Finance Commission and Sampurna Swachhata Abhiyan
programmes.
The respondents indicated that several infrastructure development works were accomplished through
these developmental projects, which directly contributed towards human welfare measures. The
developmental works completed included land Improvement, road improvement, digging of well, pond
construction, Kurli construction, goat grazing area fencing, rain harvesting tank, school boundary wall
construction, sport stadium construction, Construction of Mahila Mandal Bhawan, installation of
computer with furniture at Gram Panchayats, renovation of boundary wall, cattle fencing, repairing of
PHC, crematorium sheds, house construction, toilet construction, construction of community halls, solar
energy development.
VI.4 Human Development Linkages and outcomes
Chapter-IV of the report indicates that the state has achieved fourth stage of demographic transition,
where both fertility rates and mortality rates especially neo-natal and infant mortality rates have been
significantly decreased. Himachal Pradesh has recorded decreased population growth rate, reduction in
average household population size, decline in death rates (both crude and infant), increase in expectation
of life at birth (both men and women), reduction in General and Total fertility rate, presence of overall
balanced sex ratio, better literacy rates (both men and women), higher gross and net enrolment rates at all
levels (primary, middle, higher secondary and higher education levels).
Linkages between economic growth, Five-Year Plan expenditures (for All sectors and separately for
Economic and Social sectoral) and selected indicators of human development is depicted in Table VI.1
and VI.2. The analysis was attempted for the selected Five-Year Plan periods for which data was
available for the selected economic growth and actual expenditures for economic and social sectors.
Selected human development indicators were selected corresponding to the Five-Year Plan periods to
examine the relationships. Since the selected human development indicators data is available for specific
periods from Census reports, and Sample Registration Surveys (SRS) reports. An attempt was made to
workout average data of these indicators corresponding to the plan period.
Table No.VI.1 clearly indicates that annual economic growth rate in Himachal Pradesh has been sustained
during the Five-Year Plan periods in spite of strong variations in agricultural growth rates due to rainfall
and climatic variations in Himachal Pradesh which is largely agricultural economy. GDP growth rate at
constant process (2018-19) has also depicted significant growth rate especially from 10 th Five-Year Plan
period. Actual expenditures during the plan periods have increased substantially both for economic and
social sectors and sub-sectors. The expenditures in the sub-sectors of economy especially transport,
communication, energy, rural development, education, health, women and child development, and
sanitation has depicted constant sustained increase. (Refer Table No.VI.1)

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 Table No. VI.1
Himachal Pradesh Economic Growth, Financial Expenditure Indicators

Period Economy GDP Actual Actual Expenditure

Annual Growth Rate Expenditure Expenditure Social Sector
Growth Current Prices Rs. Crore Economic (Rs. Crore)
Rate 2014-15 Sector
(Rs. Crore)
Seventh Plan +8.8 +5.8 1324 996 301
1985-90
Eighth Plan +6.3 +5.3 3480 2202 1213
1992-97
Ninth Plan +6.4 +6.3 7899 4545 3212
1997-02
Tenth Plan +7.6 +12.6 8880 4583 3993
2002-07
Eleventh Plan +8.1 +16.7 14056 9221 4539
2007-12
Twelfth Plan +6.3 +13.8 22800 14751 7681
2012-17*
Annual Plan +6.5 +7.03 5700 3387 2213
2017-18*
Annual Plan +7.3 +6.5 6300 3624 2549
2018-19*
*Anticipated Expenditure.
Table No. VI.2 indicates that there have been continuous improvements in the human development
indicators during the selected Five-Year Plan periods. Population growth rate has declined and Himachal
Pradesh has reached at a level of below replacement levels in terms of Total fertility rate. Sex ratio which
indicates empowerment of women has also improved during the selected plan period. However infant and
children sex ratio is still cause for worry and it requires some pro-active measures. Literacy rates have
improved but still gender gap in the literacy rate exists which requires more positives measures like;
covering girls and women in inaccessible and far flung areas. Crude Birth rate and Infant Mortality Rate
has declined sharply depicted better health status.

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 Table No. VI.2
Himachal Pradesh
Demographic Indicators (Averages for the Five Year Plan Periods*)

Period Population Sex Literacy Literacy Death IMR Birth TFR

Growth Ratio Rate Rate Rate Rate
Male Female
Seventh Plan 20.79 973 75 52 8 69 27 3.7
1985-90
Eighth Plan 17.56 976 80 60 8 65 23 2.7
1992-97
Ninth Plan 17.54 976 85 67 7 52 20 2.1
1997-02
Tenth Plan 12.90 968 85 70 7 47 18 1.9
2002-07
Eleventh Plan 12.90 972 89 75 7 36 16 1.7
2007-12
Twelfth Plan 11.90 972 92 78 6 34 15 1.6
2012-17
*Averages of the above indicators have been worked out for the Five- Year plan periods for
comparison purposes.

VI.4 Research Questions Evaluated

Whether allocations and expenditures by various government departments associated with human
development has actually translated into desired outcomes contributing to accelerate the process of human
development.
 Effective human development actions in terms of improving demographic, social and economic
characteristics have been accomplished through financial allocations and actual expenditures on
human development sub-sectors. (like education sector, health sector, road connectivity, energy
and power sector, natural resource regeneration and women’s empowerment through Panchayati
Raj. These financial allocations and actual expenditures have reflected in decreased population
growth rate, reduction in average household population size, decline in death rates ( both crude
and infant), increase in expectation of life at birth (both men and women), reduction in General
and Total fertility rate, presence of overall balanced sex ratio, better literacy rates ( both men and
women), higher gross and net enrolment rates at all levels ( primary, middle, higher secondary
and higher education levels).

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 Chapter VII: Twelfth Five Year Plan Targets and Beyond
Assessment and Projections of Financial Allocation Required
VII.1 Twelfth Five-Year Plan Targets
The state of Himachal Pradesh strives for achieving the Twelfth Five Year Plan period targets in a
phased manner so as to achieve the broader goal of “Faster, More Inclusive and Sustainable
Development”. The development strategy adopted during the Eleventh Five-Year Plan period and
Annual plans of Twelfth Five-Year Plan period was to have a synergy with the efforts made at the
national level so that the goal of “Faster, More Inclusive and Sustainable Development” is realized. The
development strategy adopted had an orientation to achieve each of these elements of comprehensive
development, as all of them are of critical importance
The Twelfth Plan document emphasizes on achieving the objective of broad-based improvement in the
economic and social condition of the people and it also recognizes the need to achieve rapid growth of
GDP as it was felt that both economic growth and human development are inter-related with each other.
“Rapid growth rate helps in achieving more inclusiveness as it results in faster expansion in income and
production which, in turn, would result in income enhancements and greater employment through a
distribution mechanism designed as a policy measure to achieve the objective of more inclusiveness.
Second, revenue generated through rapid expansion in income and production can be used to finance
critical programmes of inclusiveness. These programmes are either aimed at benefiting the poor and the
excluded groups directly or enhance their abilities to access the income and employment opportunities
38
generated by the growth process”.
Several targets were approved by the National Development Council (NDC). The targets were finalized
for sub-sectors of economic growth and social development, which are directly or indirectly related to
the processes of human development.
The 12th Five -year plan targets have been categorized into several sub-sectors like; Economic
development, demographic, education, healthcare, drinking water, transport and communication and
power and energy (Refer Table No VII.1)
VII.2 Economic Development Targets
The economic development targets for GDP growth rate, agricultural growth rate and manufacturing
sector growth rate, fixed for 12th Five Year Plan are progressing as per the requirements for
manufacturing sector. However, GDP growth rate and agricultural growth rate were lagging. In order to
achieve the set targets more investments in capital expenditures are required for which fiscal discipline is
required to reduce the debts and increase capital investments. (Refer Table No.VII.1)
VII.3 Demographic Characteristics Targets
Low Sex ratio (906) below 6 years of age is major concern as the figures are far below the targets (921)
fixed during 12th Five Year Plan. Special measures need to be taken to create awareness of strict
implementation of PCPNDT Act -1994. Cash incentives for first issue as girl child should also be
considered to improve child sex ratio in Himachal Pradesh. Education scholarships till high education
should be provided to women students. (Refer Table No. VII.1)
VII.4 Education Status Targets
The 12th Five-year Plan targets for education status especially universal literacy rate seem to be below
required efforts as female literacy rate is only 77% as compared to required 95%. Although Net
Enrolment rate are fully achieved at primary level, yet female adult education targets have not been

103
achieved. Enrolments for weaker sections of society especially ST and SC population are still low.
Incentives for women adult education should be strengthened in inaccessible areas. Dropout rate at
primary and Upper Primary levels are also below expected levels. Figures of actual enrolment in primary,
middle and upper middle and high levels are progressing well and expectations are that the targets will be
achieved. Net Enrolment rates at primary, middle, secondary and senior secondary levels for both male
and females are in sync with the targets fixed for 12th Five-Year Plan and subsequent Annual Plans.
However, the targets fixed for opening new schools and colleges are well below the required levels.
Capital expenditures need to be provided for fulfilling these required targets. Similarly, recruitment of
teachers in the educational schools and colleges are also far below the required targets. (Refer Table No.
VII.1)
VII. 5 Healthcare Status Targets
The targets fixed for healthcare indicators like; Infant mortality rate, Total Fertility rate, expectation of
life at birth has already been achieved in Himachal Pradesh. But the quality of healthcare services as
evinced from the FDG survey is poor and needs immediate attention. Due to lack of funds public-private
partnerships at required to improve the healthcare system.
VII. 6 Twelfth Five Year Plan Targets, Present Status and Recommendations to achieve Targets
Twelfth Five Year Plan (2012-2017) had identified several targets to be achieved to meet the essential
requirements for human development progress. The targets selected were related to some of the human
development indicators which affect directly or indirectly. The indirect were related to like; GDP growth
rate, agricultural growth rate and development of manufacturing sector. All these indicators create
conducive conditions for investments in developing infrastructure and income opportunities for
improving quality of human development. Remarks and suggested recommendations on the status of
targets have been stated in the table based on researcher’s objective analysis. (Refer Table no VII.1)

104
 Table No VII.1
Himachal Pradesh Twelfth Five Year Plan
Targets and present status of these targets
Sector wise Revised Twelfth Present Remarks Recommendations to
Indicators Five Year Plan Status achieve Targets
Target 2018-19
Economic Lagged due More investments in Capital
Development 8.2 % 6.5% to global Expenditures
 GDP Growth Rate 4.5 % 3.4 % problems Fiscal Discipline to reduce
 Agricultural 15 % 5.7 % Conditional debts
Growth Rate to many
 Manufacturing strong
Sector policy
decisions
Demographic Requires Create awareness for strict
 Sex Ratio (Below 6 921 906 immediate implementation of MTP Act
year) and urgent Encouraging Parents through
 Other attention cash incentives for first issue
Demographic as girl child
Indicators are
satisfactory
Education Enrolment Separate Allocation for
 Literacy Rate of girls are Enrolment drive for adult
o Male 98% 91% below education for both men and
o Female 95% 77% among SC/ women as 100% literacy has
ST and BC been achieved for children.
Inaccessible
hamlets in Efforts to be made to make
difficult inclusiveness for education
terrain areas access among Scheduled
and border Castes, Scheduled Tribes and
areas not Other backward classes in
covered at border areas and areas with
present least accessibility.

Adult women need to be

covered for literacy mission
to achieved literacy targets.
Gender Gap in 3% 14% Inaccessible  Incentives and awareness
Literacy Rate hamlets in for adult education for
difficult women in hamlets located
terrain areas in inaccessible areas and
and border border areas
areas not

105
 covered at
present

Dropout Ratio Inaccessible Girls drop-out rates at

 Primary 0.00 0.26 hamlets in middle, secondary and higher
 Upper 0.00 0.20 difficult secondary levels needs to be
Primary terrain areas lessoned especially among
and border SCs, STs and other backward
areas not classes
covered at
present
Enrolments Gender Gap Enrolments of girls to be
(Primary) 309 304 in increased especially STs and
 Boys ‘000’ 276 277 Enrolments in far flung areas.
 Girls ‘000’ 585 581 still exists
 Both ‘000’
Enrolments (Middle) Gender Gap Enrolments of boys to be
 Boys ‘000’ 169 179 in increased especially STs and
 Girls ‘000’ 151 162 Enrolments in far flung areas, who
 Both ‘000’ 320 341 reduced dropout for seeking earning
opportunities.
Enrolments (9th-10th) Gender Gap Enrolments of boys to be
 Boys ‘000’ 125 133 in increased especially STs and
 Girls ‘000’ 110 119 Enrolments in far flung areas, who
 Both ‘000’ 235 252 reduced dropout for seeking earning
opportunities.
Enrolments (11th- Gender Gap Enrolments of boys to be
12th) 100 103 in increased especially STs and
 Boys ‘000’ 91 97 Enrolments in far flung areas, who
 Girls ‘000’ 191 200 reduced dropout for seeking earning
 Both ‘000’ opportunities.
Net Enrolments Satisfactory
(Primary) 100
 Boys ‘000’ 100
 Girls ‘000’

Net Enrolments Satisfactory

(Middle) 100
 Boys ‘000’ 100
 Girls ‘000’

106
Net Enrolments (9th- Satisfactory
10th) 100
 Boys ‘000’ 100
 Girls ‘000’
Net Enrolments (11th- Satisfactory
12th) 100
 Boys ‘000’ 100
 Girls ‘000’
Opening of Targets Needs outlay of funds for
Schools/Coll.  200 achieved opening educational
 Primary  250 are far institutions for increasing
School  250 below. education levels.
 Middle School  750
 Secondary  5
School
 Sr. Sec. School
 College
Appointment of Significant Appointments need to be
Teachers  1250 Shortfall in made urgently.
 Middle School  1000 targets
 High School  5250
 Sr. Sec.  720
School
 College Staff
Technical Education Significant Stipulated funds for opening
 Engineering 2 Shortfall in these colleges.
College 3 targets
 Poly Technic 2
College
 PT College (
Tribal)
Health Care
Indicators Effective Public-Private
 Infant  22 22 partnership to improve the
Mortality Rate  1.7 1.9 quality of healthcare services
 Total Fertility  25 especially at community
Rate health centres where
 Malnutrition of  22
Children (0-3)
 Anaemia
among
women/girls

107
Drinking Water Piped water supply to the
Drinking water 70LPCD habitations not served
Habitations to be 10725 currently is priority area to
covered under drinking have safe health for people
water supply schemes
Installation of hand pumps is
Installation of Hand 10000 the key requirement.
Pumps
Transport and 7500 Kms Both state Connectivity with the un-
Communication highways served habitations in the
and district difficult terrain areas is
roads in required to achieve other
border areas targets of education
are difficult development and healthcare
and cost services
intensive
due to
difficult
terrain
Power and Energy State is Power and energy sector
Growth Rate 5.7 % likely to continues to be priority to
harnessing achieve GDP target growth
about 8,368 rate of 8-9 %
MW of Focus should be on small
available Hydro-power projects as
potential by Himachal Pradesh has
the end of potential of 23,000 MW.
the year
2012-13.

VII. 7 Twelfth Five Year Plan and Annual Plans (2017-18 to 2018-19) Sectoral Outlays and
Priorities
In view of the significance attached to the human development, the allocations of Twelfth Five Year Plan
and subsequent Annual Plans have prioritised social sector development followed by transport and
communication, agriculture and allied activities and energy sector. The focus on Social sector
development indicates the priority to provide financial outlays education, health and sanitation and urban
infrastructure development. The focus on transport and communication development has continued since
9th Five- Year Plan as road density in the mountainous state requires top attention to make majority of the
human settlements accessible, so that fruits of development can be reached to such far flung habitations.
Since Himachal Pradesh is mostly agricultural economy depending mostly on forestry, horticulture and
allied activities third priority in terms of financial outlays has been rightly given to agricultural sector.
Energy sector has been identified as fourth major priority sector for development in view of existing
hydro-power resource base in the State. The state has a potential to develop the energy sector and earn
revenue to sell the electricity to the neighbouring states. The National Electricity Grid is already

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developed in the state, thus ample opportunities exist in the state to convert the potential energy into
hydro-power energy. In view of the importance of agriculture sector in the Himachal Pradesh economy,
development of irrigation assumes significant importance in the state. Development of hydro-power can
also create conducive conditions for irrigation sector development. Rural development is another priority
in the State as majority of population dwell in rural areas. Providing basic infrastructure services in these
rural habitations will go a long way to create conducive conditions for improving quality of population in
these rural habitations. So developing quality human development continues the major focus in
Himachal Pradesh. (Refer Table No. VII. 2)

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 Table No VII. 2
Sectoral Priority Outlays during the Twelfth Five Year Plan (2012-17) and Annual Plans (2017-
18 to 2018-19)
Rs. in Crore
Sr. Sector Proposed % age Proposed % age Propose % age
No. Outlays of Total Outlays of d of

Priority

Priority

Priority
(2012- Outlays (2017-18) Total Outlays Total
17) Outlay (2018- Outlay
s 19) s
1 2 3 4 5 6 7 8 9 10 11
1. Agriculture and Allied 2906.79 12.75 III 713.66 12.52 III 843.88 13.39 III
Activities
2. Rural Development 1276.73 5.60 VI 113.88 2.00 VII 127.92 2.03 VII
I
3. Special Are Programme 155.75 0.68 X 27.78 0.49 X 27.78 0.44 X
4. Irrigation And Flood 1972.37 8.65 V 371.30 6.51 V 430.85 6.84 V
Control
5. Energy 2805.59 12.31 IV 682.70 11.98 IV 682.70 10.84 IV
6. Industry and Minerals 224.42 0.98 IX 118.96 2.09 VII 113.76 1.81 VII
I
7. Transport and 4709.88 20.66 II 1073.52 18.83 II 1094.89 17.38 II
Communication
8. Science, Technology, 104.92 0.46 XI 17.37 0.30 XI 16.89 0.27 XI
Environment and IT
9. General Economic 596.59 2.62 VII 267.35 4.69 VI 284.97 4.52 VI
Services
10. Social Services 7674.22 33.66 I 2213.16 38.83 I 2548.66 40.45 I
11. General Services 372.74 1.63 VIII 100.32 1.76 IX 127.70 2.03 IX
Total 22800.00 100 5700.00 100.00 6300.00 100.00

VII. 8 Projections for Financial Requirements to meet Targets of Next Financial Years.

As reflected by (Table No VII.1), the outcomes of first three year Annual Plans (2012-2016) of Twelfth
Five Year Plan and subsequent Annual Plans, depict, that many targets related to social sector and
economic sector development especially for opening of new educational institutions, appointment of
teachers in the existing and proposed new educational institutions and development of health institutions,
provision of portable drinking water to all habitations, road connectivity to all major habitations have not
been achieved due to paucity of appropriate financial allocations in the 12th Five Year Plan and
subsequent Annual Plans. Unfortunately, the data on actual expenditures and current targets of various
social sector and economic sector indicators for the Annual Plans 2016-17 to 2018-19 is still not
available. Due to the gaps existing in the targets and actual performance in the Twelfth Five Year Plan
and subsequent Annual Plans, it was not possible to achieve many targets by the end of Annual Plan
(2018-19). Therefore, efforts are being made to provide more funds for social development sectors in the
next five years.

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An analysis of Table No III.2 - III.4 (Chapter-III) indicates that there has been substantial increase from
Rs. 8880 to 14057 crore depicting growth rate of 58% during 10th-11th Five-Year Plan, Rs. 14057 to
22800 crore depicting growth rate of 62% during 11th-12th Five –Year Plan periods and from Rs. 5700
crore to Rs. 6300 crore depicting growth rate of 11% during 2017-18 to 2018-19. Out of the total
expenditure, during 11th, 12th Five-Year Plan and subsequent Annual Plans around 65-66% expenditure
was spent for Economic Sector followed by 32-40% for Social Development Sector.
Even with the substantial increase in the Five-Year Plan expenditures during 11 th and 12th Plan and
subsequent Annual Plans, the set targets for human development indicators fell short especially in
developing new educational and health institutions and providing them adequate staff requirements. Even
existing potential of energy sector could not be fully optimised due to lack of financial allocations in the
Five-Year Plans and subsequent Annual Plans. Transport and Ccommunication Sector again requires
further strengthening to make the fruits of development easily accessible to human habitations located in
difficult terrains. In view of this, allocations for the next five years need to be enhanced by creating
synergy between public and private sector partnership.
Himachal Pradesh state being a ‘Special Category State’ ever since its formation in 1971 is financially
dependent on Central Government funds. One of the major challenges faced by Himachal Pradesh State is
the fiscal management and creation of financial capital for the developmental activities. The State
requires to generate financial resources for processes of economic and human development to broaden the
budget base for Social and Economic Development. The government is conscious of the precarious
financial situation and thus all steps are being taken to reduce unproductive expenditures, generate new
resources, impose financial discipline and accelerate development through promotion of tourism and
horticulture and also enhance the income of the State through sale of hydro-power, for which power
projects have been executed expeditiously.
Total revenue receipts for 2018-19 were fixed at Rs. 30,400 crore. However, a significant proportion of
these revenue receipts were from Grant-in Aid as direct transfers from the Central Government under
‘Special Category Status’. The data depicts that the dependence from Central Government was reduced
during this period as more revenue was generated under the tax and non-tax revenue heads. (Refer Table
No. II.12).
Since more funds are required for creating conducive conditions for human development for next five
years the State needs to generate more revenue locally and also it needs to enter into public-private
partnerships to generate extra resources for next years. Keeping in view of the targets to be achieved
during next years, an additional budgetary allocation must be made for the next years.
Ideally an increase of a minimum of 50% budgetary allocations for the next years should be stipulated.
Since Grant-in-Aid from Central Government cannot meet demands for the extra burden required for the
next years, therefore funds have to be generated locally by reducing unproductive expenditures, generate
new resources, impose financial discipline and accelerate development through promotion of tourism and
horticulture and also enhance the incomes of the state through sale of hydro-power, for which power
projects have been executed expeditiously. Externally aided projects must be also encouraged by
providing effective administrative and good governance environment. Public –Private Partnerships in
economic and social development projects like; hydro-power development, tourism development,
development of higher education and technical college institutions require impetus. Leased land should be
provided to private partners subject to the condition that their services should be monitored for benefitting
Scheduled Castes, Scheduled Tribes and other marginalised communities.
Projections for the financial requirements have been made based on the premises that a minimum of 50%

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budget allocations must be enhanced during next five years as compared to 12 th Five-Year Plan period. In
this period nearly 65% budget allocations are provided for economic sector and around 32-40% budget is
allocated to Social sector development. This needs to be increased up to 42-45% of the total allocations
for Social sector.

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 Chapter VIII: Summary, Conclusions and Recommendations

Addressing issues of human development in India is of vital importance since a significant proportion of
population are still living below the poverty line, and income inequalities are rising by the day. One of the
basic conditions for Human Development (HD) is development of the people through building human
capabilities of the people by improving their living conditions and increasing their active participation in
the processes that shape their lives. It encompasses broader and multifaceted approaches that includes; the
human resource development through appropriate and effectively monitored financing, along with the
basic needs for developing human skills as well as creating conducive conditions for human welfare
approach.
Appropriate and monitored financing for processes contributing to human development is a very critical
aspect of ensuring that public policies become concrete realities and that the poor and other vulnerable
sub-populations are supported by the state.
The present study examines and analyses the pattern of financial management, allocations and
expenditures by various government departments engaged in the processes of human development in
Himachal Pradesh state of India. The study also examines how far expenditures incurred by the state
departments have actually translated into the desired outcomes contributing to further the process of
human development in Himachal Pradesh. Last section of the report examines the on-going progress of
the indicators of human development during the annual periods of the 12th Five-Year Plan and subsequent
Annual Plans.
The study also examines and evaluates the following research questions.
 Whether Capacity building of State Planners for human development, including building
capacities in making available disaggregated District level data has been accomplished?
 Whether advocacy through dissemination and outreach of SHDRs is ensured to internalize public
expenditure for human development and social priority sectors by planners and implementers for
identified development programmes.
 Whether effective human development actions through informed decisions and human
development strategies have been incorporated in the financing framework in Himachal Pradesh
 Whether allocations and expenditures by various government departments associated with human
development has actually translated into desired outcomes contributing to accelerate the process
of human development.
The study is based on both primary and secondary sources of information. Secondary data includes all
reports and statistical data published / available on the websites by the Economics and Statistics
department of Government of Himachal Pradesh, Planning Department of Himachal Pradesh, Finance
Department of Himachal Pradesh and NITI Aayog, Government of India. In addition, books, research
articles other published data related annual budgets published/ available in the websites were also
referred. Primary data was collected through a field survey among the appropriately selected Focused
Groups in selected Gram Panchayat across the state. Pointer questions were prepared to initiate the
discussion among the selected Focused Groups in the selected samples.
Himachal Pradesh being located in the lap of Himalayan mountain ranges is predominantly an agrarian
economy as more than 60% of population depends on agricultural and allied activities (horticulture,
livestock rearing and forestry). Although the State possesses resources conducive for hydro-power
development and other manufacturing activities but due to poor road connectivity and difficult terrain

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conditions for development of railway network, the state has is least accessible for development of
manufacturing and service sector.
As per the survey conducted by Government of Himachal Pradesh a significant proportion of Scheduled
Castes and Scheduled Tribes population are still living below poverty line (24 percent of State population
in 2007).
Economic Growth and Development
The economic growth and development of Himachal Pradesh has been extra-ordinary as compared to its
neighbouring states with similar physical, topographical and socio-economic conditions. The state took
advantage of being ‘Special Category State’ status for transfer of funds from the tax collections of Central
government. The state has received special funds and grants under different Central Government
schemes. The state has converted its weakness into strengths by developing agricultural and horticulture
activities its main resource of the economy. The state also focused on the development agenda for weaker
sections dwelling in the far- flung regions by utilizing the funds effectively through balance regional
development and good governance measures.
The economic development trajectories of the State as depicted by indicators such as income-growth, and
structural composition of states gross and net domestic product and the priorities of plan outlays under
different economic and social sectors during last the two decades of planned development indicate that
from the Seventh Plan period (1985- 90), the state recorded higher economic growth rate as compared to
the national average. This growth rate has been mainly achieved through commercialization of
agricultural and allied activities. The maintaining of high annual economic growth rate in Himachal
Pradesh is in sync with the national average. After 2000, the economy has shifted from agriculture sector
to industries and services. The percentage contribution of agriculture and allied sectors in total State
Domestic Product (SDP) has declined from 58.56 percent in 1970-71 to 13.44 percent in 2018-19. On the
other hand, the contribution of secondary sector to SDP has increased from 16.73 per cent in 1970-71 to
43.60 per cent in 2018-19. Service sector has also increased significantly during the same period from
24.71 per cent in 1970-71 to 42.97 percent in 2018-19.
In spite of this negative growth of agricultural sector for these specified periods, economy of Himachal
Pradesh grew in sync with national economy. This was made possible through diversification of the
economy, especially developing service sector as well as industrial sector focusing on small scale
handicraft and manufacturing activities.
The Gross State Domestic Product and Net State Domestic Product growth rate at factor cost at current
prices increased at a much faster rate as compared to the national average. The State Gross Domestic
Product (SGDP) for Himachal Pradesh at current prices was estimated at Rs.136542 crore in 2017-18 as
against Rs.14,112 crore in 1999-2000, while the Net Domestic Product was estimated at Rs. 117191 crore
in 2017-18 as against Rs.12,467 crore in 1999-2000. This depicts an impressive annual growth rate
ranging from a minimum of 9.49 percent during 2004-05 to 2005-06 and maximum of 22.12 percent
during 2007-08 to 2008-09 for SGDP. Similarly, the SNDP recorded a minimum growth rate of 9.83
during 2001-02 to 2002-03 and a maximum growth rate of 18.20 per cent during 2008- 09 to 2009-10.
Both the SGDP and SNDP growth rate for India at current and constant prices during the same period was
comparatively less than for the Himachal Pradesh Domestic Product growth rates.
The contribution of transport and communication, trade and financial and real estate sectors increased
significantly in the State’s Domestic and Net Product. The per capita Net Domestic Product for Himachal
Pradesh was much higher than the per capita Net Domestic Product for its neighbouring states as well as
for the national average. The per capita Net Domestic Product annual growth rate was impressive

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(between 9-17%) during 2006-2010 period as compared to the national average. Such an impressive
growth rate can be attributed to adopting of planned balanced development policies especially targeting
the marginal communities across different geographical regions. Development expenditure for social
sector and for capital outlay in Himachal Pradesh was much higher than the national average during last
one decade especially during last 4 years.
The State per Capita Net Domestic Product at Current Prices was Rs. 1,23,299 in 2018-19 as compared
to Rs. 88,533 crore at Constant Prices. While till Eighth Five Year Plan, per Capita Net Domestic
Product was more or less similar for both the State of Himachal Pradesh and for the country, it depicted
higher growth rate from Tenth Five -year Plan (2002-07) onwards for the State of Himachal Pradesh.
The State recorded insignificant investments during First to Fifth Five Year Plan period. However, the
overall investment and per capita investment increased substantially after 7th Five-Year plan in the State,
due to the creation of income generation activities especially in horticulture, cultivation of fresh vegetable
seeds and tourism related activities. This was made possible due to budgetary provisions for the
development of transport and communication activities under five year plans and annual plans. This also
increased employment opportunities in the real estate services. Several Centrally sponsored programmes
were implemented for developing processes of human development especially higher investments in
sanitation, housing and education. Fortunately, most of other investments were spent on development
programmes related to improving the dominant agricultural and allied activities especially fruit
cultivation. The annual investment from 2007-08 onwards depicts substantial increase which also resulted
in the significant increase in the per capita annual investment.
Fiscal Management and Decentralized Sectoral Planning
One of the major challenges faced by Himachal Pradesh state is the fiscal management and creation of
financial capital for the developmental activities. The state requires to generate financial resources for
processes of economic and human development to broaden the budget base for Social and economic
development. The government is conscious of the precarious financial situation and thus all steps are
being taken to reduce unproductive expenditures, generate new resources, impose financial discipline and
accelerate development through promotion of tourism and horticulture and also enhance the incomes of
the state through sale of hydro-power, for which power projects have been executed expeditiously.
Himachal Pradesh’s revenue and capital receipts in 2017-18 were Rs. 34034 crore, out of which Rs.10164
crore were grants from Central Government as the State being ‘Special Category State.’ This accounts for
29.86 percent dependence on the central grants of its total budget in 2017-18. This higher tax devolution
allows states greater autonomy in financing and designing of schemes as per their needs and
requirements.
Although there is significant increase in the revenue receipts during last five years, however a significant
proportion of these revenue receipts are from ‘Grants from Central Government’ and other Centrally
Sponsored Programmes. The proportion of per capita expenditures under capital heads, indicate the
potential for developing investments for the processes of human development. The proportion of per
capita expenditure under revenue head hovers around 78-80 percent, while only 20-22 percent of this
expenditure is spent under capital expenditure head. Thus the state requires to improve the financial
management and generate financial resources for processes of economic and human development to
broaden the budget base for Social and economic development. Thus to improve the investments, the state
requires to improve the financial management and generate financial resources for processes of economic
and human development to broaden the budget base for Social and economic development.
One of the major challenges faced by Himachal Pradesh State is the fiscal management and creation of

115
financial capital for the developmental activities. The state requires to generate financial resources for
processes of economic and human development to broaden the budget base for Social and Economic
Development. The government is conscious of the precarious financial situation and thus all steps are
being taken to reduce unproductive expenditure, generate new resources, impose financial discipline and
accelerate development through promotion of tourism and horticulture and also enhance the incomes of
the State through sale of hydro-power, for which power projects have been executed expeditiously.
Himachal Pradesh has formulated decentralized planning by engaging the District Planning Cells for the
preparation of schemes at the micro level ( Zila Panchayat and Panchayat Samitis level ). Aim is to
monitor the process of the implementation of all the plan schemes being run by various departments soon
after the approval of the budget. These schemes include, Sectoral Decentralized Planning (SDP), Vikas
Mein Jan Sahyog (VMJS), Vidhayak Keshetra Vikas Nidhi Yojna (VKVNY), Mukhya Mantri Gram Path
Yojna (MMGPY) and the, Backward Area Sub-Plan, Tribal Area Sub-Plan., Scheduled Caste Sub Plan,
MPLAD Schemes, 20-Point Programmes and special grants under 13th and 14th Finance Commission. A
total of Rs. 183.93 crore, Rs. 67.49 crore, Rs.94.54 crore and Rs. 35 crore were utilized by the 10 non-
tribal districts respectively under the SDP, VMJS, VKVNY and MMGPY programmes during the 11 th
Five-Year Plan (2007-12). Similarly, Rs.69.95 crore, Rs.21.59 crore, Rs.81.65 crore and Rs.5.50 crore
were utilized respectively under the SDP, VMJS, VKVNY and MMGPY programmes during the annual
plan of 2018-19.
Several efforts have been made under the UNDP- Planning Commission programme to create essential
environment at the state level to specify annual budget that could contribute development of human
quality and also provided all necessary infrastructural support to transform the quality of human
development. In this direction State Planning departments were sensitized to allocate funds judiciously for
balanced regional development, covering various social and economic sub sectors across all regions. A
decentralized planning approach was adopted, where Panchayats (Lowest tier of administration) had the
power to identify the development activities which were in sync with their requirement and adequate fund
allocations were provided for such development programmes.
There has been substantial increase in the actual expenditure under Five-year plans and annual plans from
2007 onwards for sub-sectors under the Economic Sector, Social Sector and other General Sector
contributing towards the processes of human development. The actual expenditure increased substantially
for transport and communication, energy, sanitation and housing, education and health and family
welfare. This created conducive infrastructure for improving human development processes. About 40-45
percent expenditure was made under the social development sector (Sanitation and housing, education
and health and family welfare) during 9th and 10th Five-year plan period. Growth rate of expenditures was
impressive depicting more attention given to developing infrastructure for human development processes.
Although actual expenditures under for Social Development Sector increased during 11 th and 12th Five-
Year Plan but the percent to total expenditure for the Social Development Sector decreased to 32-34% of
the total expenditure incurred for all sectors.
Strengthening economic based like investments in transport and communication, and
development of small scale industry for employment generation especially small scale industries was
visualised as prime requirement to consolidate the human development processes in the 11 th and 12th
Five-year plan. Thus, the plan laid emphasis for investing the transport and communication sector,
industries, energy sector and rural development activities in addition to the Social development sector
especially sanitation, housing and education sub- sector. Thus creation of new infrastructure and new
projects for the processes of human development needs strengthening in future plans. A substantial

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finances needs to be generated by the state for this purpose.
Human Development Status
Himachal Pradesh scores reasonably high on the indices of Human Development in comparison to other
neighbouring states of the country. The demographic indicators like growth rate or population and
average size of households were exceptionally good for Himachal Pradesh. Thus economic growth and
development parameters are essentially reflected through declining population growth by decreasing both
births and death rate. This reflects advanced stage of demographic transition model. A satisfying picture
indicates that all the districts have achieved lower decennial population growth rate as compared to the
national average. The decrease in the population growth rate has also translated into less household
population size. , which is one of the ideal conditions for promoting growth generative policies for the
population.
Himachal Pradesh has constantly recorded more balanced sex ratio since 1981, where as the national
average of sex ratio has been declining constantly, depicting Himachal Pradesh as one of the most
developed state in terms of gender justice and women’s empowerment. However unfortunately, Himachal
Pradesh has recorded lower sex ratio for (0-6 years) as compared to national average, which itself has
very low sex ratio. Keeping significance of increase in child sex ratio, 12th Five-Year Plan and subsequent
Annual Plans have fixed target to increase the child sex ratio.
The educational achievements in terms of overall literacy rate, female literacy rate, gross and net
enrolment rates and drop-out rates at primary, middle and high/ higher secondary levels are impressive
compared to the national average and other neighbouring states.
Efforts have been made to open new schools in far flung areas so that educational institutions are made
easily available within short distances. In a hilly state like Himachal Pradesh access is challenging task as
people live in small size hamlets which are far away from each other due to terrain constraints. Currently
2.04 schools/ educational institutes are available per “000‟ population. However, a significant variation
was recorded in the availability of schools per “000‟ population among the districts. In case of districts
falling in plain areas the distribution was lower as population tends to cluster in few nodes, while it was
high for districts falling within difficult terrain as people dwell in sparsely distributed hamlets. Thus
government has taken due care to provide more schools in difficult terrain districts to provide easy access
to the population. The data indicates that 85.66 schools were available per “00‟ settlements, which shows
that government has made all possible efforts to provide easy access and availability of education
institutes to the people.
Himachal Pradesh has also performed better in proving adequate number of teacher to pupil ratio over a
period of time. Teacher/Pupil ratio has improved significantly in primary/ junior basic schools since
2003-04. About 25% population has education up to higher education and above levels, which includes
9% having education up to graduation and above graduation levels. However technical education is very
low as only 1% of the population have technical diploma. Although the picture is better than the national
average, still Himachal Pradesh is lagging in technical education.
Gross and Net enrolment rates for primary, upper primary, secondary and higher secondary levels point
out that the target of Gross enrolment rates have been achieved in all districts for both boys and girls for
the primary and upper primary levels. The Net enrolment rates are slightly behind in some districts but are
very close to the targets of 100% requirement. Gross enrolment rates at secondary level are showing
better results both for boys and girls across all the districts which indicate that students from higher ages
are now pursuing their education at these levels. The efforts of the education department in making these
students agree to enroll at secondary level even if they are at higher ages are laudable. However, Net

117
enrolment rate at hr. secondary level is still lower at around 61-78 percent. The far flung and inaccessible
districts of Lahaul-Spiti and Kinnaur have lower GER as compared to other districts for both boys and
girls.
The healthcare indicators like infant mortality rate, crude death rates, expectation of life at birth recorded
impressive improvement and these indicators were exceptionally good as compared to the national
average. The state has already achieved the target fixed for both crude death rate and infant mortality rate.
Crude death rate was 6.6 per “000‟ population in Himachal Pradesh as compared to 6.3 for India in 2017.
Infant mortality rate in Himachal Pradesh has shown significant decline from 57 per “000‟ live births in
2006 to 22 per “000‟ live birth in 2017. Expectation of life at birth again depicts better performance for
Himachal Pradesh State as compared to the national average. Female expectation of life at birth has
depicted significant improvement which is in sync with any developed society.
Crude birth rate for Himachal Pradesh was 15.8 per “000‟ population in 2017 as compared to 20.2 per
“000‟ population for India. Thus, the State has achieved the target in reducing the crude birth rate
effectively and the decline in the birth rate has been continuous since 2000 onwards. The State has
already reached replacement levels in terms of births as Total and General fertility rates were below
national level at both rural and urban places. Though institutional deliveries have improved in the State,
yet some far-flung regions require these services. Quality of health services especially human resources
availability of specialized staff in the State requires attention.
Himachal Pradesh recorded 59.56 medical institutes per lakh population which was lower than available
10 years earlier. Whereas population increase during 2001-11 outpaced the increase in medical institutes.
The data clearly reflects that capital investment in terms of making more medical institutes and hospital
beds available has not been accomplished. However, the availability of medical institutions and hospital
beds is in conformity with the appropriate norms and even better than the national average.
Women empowerment and participation in the State is impressive. In addition to the women being elected
in the reserved seats, even women have been elected for un-reserved seat in the Gram Panchayats and
women members outnumber men in the Gram Panchayats. Thus women have achieved empowerment in
real sense in Himachal Pradesh in governance issues. These results have clearly influenced gender justice
and favorable healthcare and educational indicators.
The performance of MGNREGA is good in case of Himachal Pradesh. This is probably due to active
participation of elected members at Gram Panchayat level, supported by the district administration. The
performance in terms of generating ‘Mandays’ has been exceptionally good, however variation was found
in terms of generation of ‘Mandays’ among the districts. Better performance districts were Mandi,
Chamba and Kullu, whereas Lahaul-Spiti and Kinnaur were poor performed districts.
Himachal Pradesh was declared “Open Defecation Free” (ODF) State in the country and stood the second
State, after Sikkim to get this status. All the households in the State have toilet facility. Among bigger
States, Himachal Pradesh is the first State to become ODF. All 12 districts of the State have been covered
as ODF districts.
Food security in a hilly State with limited accessibility is essential to maintain the supplies of essential
food items during connectivity disruptions. The supplies are ensured t h r o u g h public distribution system
for providing basic food requirement like; rice, wheat, sugar supply. All these basic food requirements are
provided by “Fair Price Shops‟.
Natural Resource Management Himachal Pradesh is one of the ecologically sensitive States with 66.52
percent square kilometre of forest area. This is most preserved carbon free State of the country. The State
has used all possible abilities and prudence in managing the natural resources. Several measures have

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been taken by government and people to maintain the pristine nature. Himachal Pradesh has been the first
State in the country to have put a blanket ban on the felling of green trees in the State. Alternative
arrangements have been provided to people like use of LPG gas, electricity and other non pollution based
energy for cooking and lighting purposes.
The State has set targets of 12th Five-Year Plan and subsequent Annual Plans to improve the processes of
human development especially for improving demographic indicators, educational services, healthcare
facilities and other infrastructure for improving overall quality of life. Majority of the set targets are in
sync with the requirements and are progressing well. The status of target fixed during the 12 th Five-Year
plan period shows mixed results.
The study points out
 Special efforts have been made to build capacity of state planners for devising strategies to
prepare priorities for the economic and social sectors leading to overall human development. In
fact, separate fund allocations and actual expenditures stipulated under these sectors have been
operationalized during 10th, 11th and Annual Plans under 12th Five- Year Plan and subsequent
Annual Plans. This strategy has definitely increased actual financial expenditures for the
prioritized economic and social sub sectors especially; transport, energy, sanitation and housing,
education and health care. These actual expenditures have significantly contributed towards
improving indicators of human development in Himachal Pradesh.
 The capacity build among the state planners should have led to the availability of district level
disaggregated data on budget allocations and actual expenditures. This data would have helped to
measure the district wise outcomes of such allocations and actual expenditures on the human
development indicators. But unfortunately the state planners have not yet internalized the process
of providing district wise allocations and actual expenditures; hence measuring the impact of
financial expenditures on human development at district level is not possible. Thus the objective
of building capacities in making available disaggregated District level data has not been
accomplished
 Effective human development actions in terms of improving demographic, social and economic
characteristics have been accomplished through financial allocations and actual expenditures on
human development sub-sectors. (like education sector, health sector, road connectivity, energy
and power sector, natural resource regeneration and women’s empowerment through Panchayati
Raj. These financial allocations and actual expenditures have reflected in decreased population
growth rate, reduction in average household population size, decline in death rates ( both crude
and infant), increase in expectation of life at birth (both men and women), reduction in General
and Total fertility rate, presence of overall balanced sex ratio, better literacy rates ( both men and
women), higher gross and net enrolment rates at all levels ( primary, middle, higher secondary
and higher education levels).
 The respondents indicated that several infrastructure development works were accomplished
through developmental projects, which directly contributed towards human welfare measures.
The developmental works completed included land Improvement, road improvement, digging of
well, pond construction, Kurli construction, goat grazing area fencing, rain harvesting tank,
school boundary wall construction, sport stadium construction, Construction of Mahila Mandal
Bhawan, installation of computer with furniture at Gram Panchayats, renovation of boundary
wall, cattle fencing, repairing of PHC, crematorium sheds, house construction, toilet construction,
construction of community halls, solar energy development.

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Recommendations
 The state planners have not yet internalized the process of publishing district wise allocations and
actual expenditures at micro level units, hence measuring the impact of financial expenditures on
human development at district level is not possible. Thus, the objective of building capacities in
making available disaggregated District level data has not been accomplished. This must be taken
immediately by the planners so that exercises of finding and analyzing financial expenditures on
different sub-sectors of social and economic components can be attempted at micro level units
(district units).
 The State’s complete dependence on Central government funds needs to be relooked and efforts
should be made to generate more revenue locally, so that expenditures on infrastructure is
increased on capital investment and capacity building of human resources.
 In view of the adoption of Goods and Sales Tax Act, the State might be in better position
financially, so identification of new infrastructure requirements in sync with the processes for the
human development especially road network development, health and educational infrastructure
and improving manpower in these sectors need priority.
 The economic development targets for GDP growth rate, agricultural growth rate and
manufacturing sector growth rate, fixed for 12th Five Year Plan and subsequent Annual Plans are
progressing as per the requirements for manufacturing sector. However, GDP growth rate and
agricultural growth rate were lagging. In order to achieve the set targets more investments in
capital expenditures are required for which fiscal discipline is required to reduce the debts and
increase capital investments.
 Low Sex ratio (906) below 6 years of age is major concern as the figures are far below the targets
(921) fixed during 12th Five Year Plan. Special measures need to be taken to create awareness of
strict implementation of PCPNDT Act -1994. Cash incentives for first issue as girl child should
also be considered to improve child sex ratio in Himachal Pradesh.
 The 12th Five- year Plan targets for education status especially universal literacy rate seem to be
below required efforts as female literacy rate is only 77% as compared to required 95%. Although
Net Enrollment rate are fully achieved at primary level, yet female adult education targets have
not been achieved. Enrolments for weaker sections of society especially ST and SC population
are still low. Incentives for women adult education should be strengthened in inaccessible areas.
Dropout rate at primary and Upper Primary levels are also below expected levels. Figures of
actual enrolment in primary, middle and upper middle and high levels are progressing well and
expectations are that the targets will be achieved. Net Enrollment rates at primary, middle,
secondary and senior secondary levels for both male and females are in sync with the targets
fixed for 12th Five-Year Plan. However, the targets fixed for opening new schools and colleges
are well below the required levels. Capital expenditures need to be provided for fulfilling these
required targets. Similarly, recruitment of teachers in the educational schools and colleges are
also far below the required targets
 The targets fixed for healthcare indicators like; Infant mortality rate, Total Fertility rate,
expectation of life at birth has already been achieved in Himachal Pradesh. But the quality of
healthcare services as evinced from the FDG survey is poor and needs immediate attention. Due
to lack of funds public-private partnerships at required to improve the healthcare system.
 Capacity building of existing human resources for educational institutes and health care
professional need top most priority. Skill development of workers for horticulture, livestock

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 rearing and cottage and small scale industries requires immediate attention, so as to provide
employment opportunities for quality subsistence of the people.
 Ideally an increase of a minimum of 50% budgetary allocations for the next years should be
stipulated. Since Grant-in-Aid from Central government cannot meet demands for the extra
burden required for the next years, therefore funds have to be generated locally by reducing
unproductive expenditures, generate new resources, impose financial discipline and accelerate
development through promotion of tourism and horticulture and also enhance the income of the
State through sale of hydro-power, for which power projects have been executed expeditiously.
Externally aided projects must be also encouraged by providing efficient administrative and good
governance environment. Public–Private-Partnerships in economic and social development
projects like; hydro-power development, tourism development, development of higher education
and technical college institutions require impetus. Leased land should be provided to private
partners subject to the condition that there service should be monitored for benefitting Scheduled
Castes, Scheduled Tribes and other marginalized communities.
 In the Annual Plan of 2018-19, nearly 58% and 40% budget allocations have been made for
Economic Sector and Social Development Sector respectively.
***

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 List of Tables
Table No II.1 Himachal Pradesh: Some Demographic Indicators
Table No II.2 Himachal Pradesh: Scheduled Castes, Scheduled Tribes and Population, Below Poverty
Line
Table No.II.3 Comparative Growth Rate of H.P. and National Economy recorded during Five Year
and Annual Plan Periods
Table No. II. 4 Trends in the Growth in Gross Domestic Product in Surrounding States of Himachal
Pradesh
Table No. II. 5 Percentage Contribution of Sectoral State Domestic Product at Current Prices
Table No. II. 6 ANNUAL GROWTH RATE OF GROSS DOMESTIC PRODUCT (At Constant Prices)
Table No. II .7 GROSS AND NET STATE DOMESTIC PRODUCT
Table No II. II.8 GROSS STATE DOMESTIC PRODUCT (At Current Prices)
Table No II.9 GROSS STATE DOMESTIC PRODUCT (At Constant Prices)
Table No. II. 10 Revenue and Capital Expenditure
Table No. II.11 Himachal Pradesh Actual Expenditure under Five Years Plans and Annual Plans
Table No. II. 12 Overall Financial Position of the State of Himachal Pradesh ( Rs. in Crore)
Table No. II. 13 Himachal Pradesh Per Capita Revenue and Expenditure (Indian Rupees)
Table No III.1 Actual Expenditure / Sub-sector Expenditures Under Five Years Plans
Table No. III.2 Per Cent Actual Expenditure/ Sub-sector Expenditures Under Five Years Plans and
Annual Plans (2017-18 and 2018-19)
Table No III.3 Per Cent Actual Expenditure/ Sub-sector Expenditures under Annual Plans and 12 th Five
Year Plan
Table No III.4 Per Cent Growth Rate, Actual Expenditure / Sub-sector Expenditure Under Five Years
Plans
Table No III.5 Health and Social Security and Welfare Services
Table No III.6 Himachal Pradesh- 2019 Units of Decentralized Planning
Table No III.7 Vikas Mein Jan Sahyog (VMJS) Sanctioning Authority and Limit of Funds
Table No. III.8A-D Himachal Pradesh Funds Utilized under Decentralized Planning and other Direct
Expenditure For Non-Tribal Districts
Table No. III.9 Himachal Pradesh BASP Outlay and Actual Expenditure under 12 th Five Year Plan and
2012-13 to 2018-19
Table No III.10 Himachal Pradesh Percent Actual Expenditure under 12th Five-Year Plan and Annual
Plan 2013-14 For Backward Area, Scheduled Castes and Scheduled Tribes Sector Wise (Percentage)
Table No III.11 Component wise RIDF provisions for Annual Plan -2018-19
Table III.12 Award of 12th to 14th Finance Commissions
Table No III.13 Himachal Pradesh Components Wise Externally Aided Project Total Outlay and Actual
Expenditure Annual Plan 2013-14
Table No IV.1 Himachal Pradesh Temporal Variation of Some Demographic Indicators
Table No IV.2 Himachal Pradesh- 2011
Table No IV.3 Himachal Pradesh Sex Ratio
Table No.IV.4 Himachal Pradesh Schools Information 2018-19
Table No. IV. 5 Himachal Pradesh Teacher/ Pupil Ratio

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Table No IV.6 Himachal Pradesh General Literacy Rate
Table No IV. 7 Himachal Pradesh Education Levels 2011
Table No. IV.8 GROSS and NET ENROLEMENT RATES 2018-19 Primary Level
Table No. IV.9 GROSS and NET ENROLEMENT RATES 2018-19 Upper Primary Level
Table No. IV.10 GROSS and NET ENROLEMENT RATES 2018-19 Secondary Level
Table No. IV.11 GROSS and NET ENROLEMENT RATES 2018-19 Hr. Secondary Level
Table No IV.12 Himachal Pradesh Access and Availability of Medical Institutes 2018-19
Table No IV.13 Himachal Pradesh Access and Availability of Medical Institutes
Table No. IV. 14 Himachal Pradesh Crude Death rates and Infant Mortality Rates (Per ‘000’ Live births)
Table No IV.15 Himachal PradeshExpectation of life at Birth
Table No. IV. 16 Himachal Pradesh Crude Birth Rate (Births per ‘000’ population)
Table No. IV.17 Total Fertility Rates of H.P. and India (since 1988 SRS)
Table No IV.18 Immunization in Himachal Pradesh
Table No. IV. 19 Himachal Pradesh- 2016-2020 Term Members of Rural Local Bodies
Table No IV. 20 Himachal Pradesh- 2016-2020 Term Panchayat Pradhan
Table No. IV.21 Himachal Pradesh- 2011
Table No. IV.22 Himachal Pradesh MGNREGA Performance for Women
Table No.IV. 23 Himachal Pradesh Road Network and Connectivity Indicators2016-17
Table No. IV. 24 Himachal Pradesh Public Service Infrastructure
Table No. IV.25 Himachal Pradesh Natural Resource Management Indicators
Table No.V. 1 Selected Sample Size for Focused Group Discussion
Table No. V.2 Abstract of Information from Gram Panchayats Financial Allocations Provided for Gram
Panchayats
Table No. V.3 Abstract of Information from Gram Panchayats Financial Allocations Provided for Gram
Panchayats
Table No. V.4 Abstract of Information from Gram Panchayats Perception of FGD
Table No. V.5 Abstract of Information from Women FGDs
Table No V. 6 Abstract of Information from Women FGDs Schemes/ Activities Undertaken for Women
in Gram Panchayat
Table No V. 7Abstract of Information from Women FGDs Perception of FGD
Table No V.8 Abstract of Information from Women FGDs Perception
Table No V.9 Abstract of Information from Men FGDs
Table No. V. 10 Abstract of Information from Men FGDs Schemes/ Activities Undertaken for Men in
Gram Panchayat
Table No. V. 11 Abstract of Information from Men FGDs Perception of FGD
Table No. V. 12 Abstract of Information from Men FGDs Perception
Table No 13 Abstract of Information from Children (6-18 years) FGDs
Table No. V.14 Abstract of Information from Children FGDs Information
Table No. VI.1 Himachal Pradesh Economic Growth, Financial Expenditure Indicators
Table No. VI.2 Himachal Pradesh Demographic Indicators (Averages for the Five Year Plan Periods*)
Table No VII.1 Himachal Pradesh Twelfth Five Year Plan Targets and present status of these targets
Table No VII. 2 Sectoral Priority Outlays during the Twelfth Five Year Plan (2012-17) and Annual Plans
(2017-18 to 2018-19)

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Ahluwalia, M.S. (1988), History of Himachal Pradesh, Intellectual Publishing House, New Delhi.
Balokhra, Jag Mohan (2002), The Wonderland Himachal Pradesh, H.G. Publications, New Delhi.
Budget documents of state governments of Himachal Pradesh.
Website: http://niti.gov.in/state-statistics, Accessed on 22nd October 2016 ( Data as on 31-7-2015).
Chabbott, C. and Ramirez, F. O. 2000. Development and education. Hallinan, M. (ed.),
Handbook of the Sociology of Education. New York, Kluwer Academic, pp. 163–88.
Cranney, Brenda (2001) Local Environment and Lived Experience: Mountain Women of Himachal
Pradesh, Sage Publications, New Delhi.
Directorate of Economic & Statistics – Himachal Pradesh and Central Statistics Office , GOI, State-wise
estimates are released with the base year 2004-05, Estimates at All India Level for 2014-15 are available
only at base year 2011-12
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Department, Government of Himachal Pradesh.
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Government of Himachal Pradesh, Shimla.
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Shimla.
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Department of Irrigation and Public Health, Shimla.
Government of Himachal Pradesh (2002), Himachal Pradesh Human Development Report, Government
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Horticulture in Himachal Pradesh, Shimla.
Government of Himachal Pradesh (Years as listed), State Policy Documents on
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(2001), Forestry (2002) and Biotechnology (2003), Shimla.
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Shimla.
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GOI (2010), Millennium Development Goals – India Country Report 2009, Mid Term Statistical
Appraisal.
Twelfth Five-Year Plan Document, Planning Commission, GOI.
Hannum, E. and Buchmann, C. 2004. Global educational expansion and socio-economic development: an
assessment of findings from the social sciences. World Development, Vol. 33, No. 3, pp. 1–22.
Himachal Pradesh, Planning Department, Draft 12th Five Year Plan 2012-17
Himalayan Jal Sanskriti (2003), Survival Lessons, Sterling Preferred Printing, New Delhi.
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Survey, India 1998-99, Mumbai.
Kanwar, Pamela (1999), Essays on Urban Patterns in Nineteenth Century Himachal Pradesh, Indian
Institute of Advanced Study, Shimla.
Laws, Sohie (2003), Research for Development, Vistaar Publications, New Delhi.
Negi, S.S. (1993), Himachal Pradesh, Land and People, Indus Publishing Company, New Delhi.

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Planning Department (undated), Tenth Five Year Plan: 2002-2007, Government of Himachal Pradesh,
Shimla.
Planning Commission (undated), State Plans ­ Trends, Concerns and Strategies, Tenth Five Year Plan
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Reserve Bank of India (2002), State Finances: A Study of Budget of 2001-02, New Delhi.
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No. 2, pp. 207–25.
Sen Gupta, A. (2007), Conditions of Work and Promo on of Livelihood in the Unorganized Sector,
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Planning, Shimla ( A paper communicated in personal capacity).
Sharma, Pawan Kumar and Komila Parthi (2001), "Population Projections for a Hill State: Himachal
Pradesh", Population Geography, Volume 23, pp. 61- 68.
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Development Performance), Mittal Publication, Delhi.
Singh, K.S. ( 1996) , People of India: Himachal Pradesh (Volume XXIV), Manohar, New Delhi.
Singh, M.G. (1985), Social Cultural Economic Survey of Himachal Pradesh, Minerva Book House,
Shimla.
Topel, R. 1999. Labour markets and economic growth. Ashenfelt, O. and Card, D. (eds), Handbook of
Labor Economics,Vol. 3C. Amsterdam, North Holland, pp. 2943–84
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Annexures Pointers for Focused Group Discussion
Annexure- I

Panchayat Members (All Members together)

Name of Member/ Age/ Sex/ Caste Date
Gram Panchayats District
 Financial Allocation under different programmes during last three years
 Actual Financial expenditures under different programmes during last 3 years.
 Process of Release of financial allocation and time periods for the release of these financial
allocations
 Name Actual Human Development Process Projects undertaken during last three years in the
Gram Panchayats. Give details of each project.
 Major stakeholders and beneficiaries of such project activities.
 Major hurdles in completing the human development projects.
 Perception of FGD members on
o Education Access, Enrolment, infrastructure, human resources, quality of teachers,
quality of education.
o Health – access/ infrastructure/ human resources/ quality of services
o Health major morbidity/ diseases and health care services to control morbidity.
o Infrastructure Gaps ( Demand and Supply) in the Gram
Panchayat
 Roads
 Electricity
 Schools
 Health Centers
 Public Health- Drinking water, drains, toilets others
 Peoples participation and governance.
 Any other information

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 Annexure-II
Women aged 18-54 Years
Name Age
Village/ Gram Panchayat/ Block/ District
 Name Major Developmental Projects Undertaken by Government/ NGOs in the Gram
Panchayat during last 3 years
o Education- SSA other
o Health- Janani Yojana, Ayush
o Infrastructure- Road, Buildings – Education/ Health/ Others
o Public Health- Drinking Water, Housing, Drainage
o Electricity
o Peoples participation in Governance
 Activities undertaken by Gram Panchayat in the villages for Women related development.
 State major outcomes of these activities undertaken by Government/ Local Government/ NGOs
 Give your feed back on
o Education Access and Enrolment for Girls and Women
o Health Care Services for women
o Poverty Alleviation programmes
o Employment Opportunities for Women Under various
government schemes.
o Other Activities of Infrastructure development and construction activities of roads/
schools/ health centres/ and others
 State major hurdles in getting the results from these projects
 Give your perception on following
o Marriage Age for Women
o Decision on number of Children and their spacing
o Nutrition of pregnant women and lactating mothers
o New born children facilities in health centers
o Inoculation of children
o Facilitates at health Centers in terms of human resources and infrastructure.
o Participation in Gram Panchayat decision making process
o Perception on Violence and cruelty against women
o Work participation under different government programmes
o Major health issues of women and quality of services for their health care support.
o Any other issues relevant to the Gram Panchayat

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 Annexure-III

Adults Aged 18-65 Years

Name Age
Village/ Gram Panchayat/ Block/ District
 Name Major Developmental Projects Undertaken by Government/ NGOs in the Gram
Panchayat during last 3 years
o Education- SSA other
o Health- Janani Yojana, Ayush
o Infrastructure- Road, Buildings – Education/ Health/ Others
o Public Health- Drinking Water, Housing, Drainage
o Electricity
o Peoples participation in Governance
 Activities undertaken by Gram Panchayat in the villages related to development.
 State major outcomes of these activities undertaken by Government/ Local Government/ NGOs
 Give your feed back on
o Education Access and Enrolment
o Health Care Services
o Poverty Alleviation programmes
o Employment Opportunities for adults under various government schemes.
o Other Activities of Infrastructure development and construction activities of roads/
schools/ health centres/ and others
 State major hurdles in getting the results from these projects
 Give your perception on following
o Marriage Age for Women/ Men
o Decision on number of Children and their spacing
o Nutrition of pregnant women and lactating mothers
o New born children facilities in health centers
o Inoculation of children
o Facilitates at health Centers in terms of human resources and infrastructure.
o Participation in Gram Panchayat decision making process
o Perception on Violence and cruelty against women
o Work participation under different government programmes
o Major health issues of women and quality of services for their health care support.
o Any other issues relevant to the Gram Panchayat

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 Annexure-IV

Children (6-18 Years) both Boys and Girls

Name Age
Village/ Gram Panchayat/ Block/ District
 Whether any children in the village Out of Schools If yes State number of Boys and Girls
separately.
 If out of School Children- state reasons for not going to schools
 School Education Facilities in the Gram Panchayat
o Access to schools
o Infrastructure- building/ toilets/ drinking water/ black boards/ book.
o Teachers numbers per school and their quality
o Any dropouts
o Reasons for dropouts
o Quality of teaching
o Mid-days meals served in schools
o Quality of mid day meals
o Whether separate treatment in terms of facilities and services given to boys and girls by
teachers/ parents and community
o If yes state major points
 Heath services if sick in schools / at home
 Whether Gram Panchayat takes their demand into account for
developing facilities in schools.
 State any major development activities undertaken in your schools by Gram Panchayats/ Local
Government/ Central Government
 Does your school have PTAs/ VECs.
 Any other relevant information from children

***

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