Plagued by a severe financial crunch, Himachal Pradesh has decided to revive state-run lotteries, effectively reversing a ban that had been in place for 26 years. The decision, made by the state cabinet, aims to boost the state's dwindling revenue and address its massive debt burden.
The state government is grappling with a debt exceeding ₹1 lakh crore and a projected revenue deficit of over ₹6,000 crore for the 2025-26 financial year. Officials hope that the reintroduction of lotteries will generate an estimated ₹50 to ₹100 crore annually. While this sum is modest compared to the overall deficit, it is viewed as a crucial lifeline for the cash-strapped administration. The cabinet has given its approval for the sale of lotteries within the state. Lottery operations were initially banned in Himachal Pradesh in 1999 by the government led by BJP leader Prem Kumar Dhumal, with violations made punishable under the Lotteries (Regulation) Act.
The decision has met with strong opposition, particularly from the Bharatiya Janata Party (BJP). Former Chief Minister Jai Ram Thakur has strongly condemned the move, recalling the social harm caused by lottery schemes in the past, including instances of financial ruin, family breakdowns, and even suicides. Thakur and other critics accuse the current government of exploiting the poor and desperate by promoting gambling as a means to fill fiscal gaps, arguing that this approach signals deeper structural problems and a lack of long-term economic planning. He also alleged that the government is promoting cannabis cultivation and expanding liquor sales in the name of a self-reliant Himachal.
Himachal Pradesh Industry Minister Harshwardhan Chauhan has defended the decision, pointing out that there is no nationwide ban on lotteries and that 13 other states in India currently permit them. He cited examples such as Kerala and Punjab, which generated substantial revenue from lotteries in the fiscal year 2024-25. Chauhan expressed confidence that Himachal Pradesh could also benefit from a properly regulated lottery system, with the government expecting to generate an additional income of ₹50 to ₹100 crore annually.
To supplement revenue beyond the lottery, Himachal Pradesh has already implemented several fiscal measures this year, including an environment cess on non-agricultural land use, new charges on hydropower generation, and the auction of mineral leases. The state government has cited declining central allocations and the end of GST compensation as key reasons behind the move to tap alternative sources of revenue.
Economists and policy observers have cautioned that while the lottery initiative might provide short-term relief, it is not a sustainable solution. They argue that Himachal Pradesh needs deeper reforms, such as diversifying its economy, improving tax collection efficiency, and rationalizing subsidies, to build long-term fiscal resilience. Concerns have also been raised about the potential for lottery addiction and its disproportionate impact on the poor, unemployed, and financially insecure. It has been suggested that the youth of Himachal Pradesh need jobs, education, skill development, and mental health support, rather than the false hope of a lottery win.
The state government is expected to introduce legislation in the monsoon session of the Vidhan Sabha, starting August 18, to ensure consumer safeguards and regulation of the lottery system. The cabinet also decided to introduce reservation for Other Backward Classes (OBC) in Urban Local Bodies elections and approved a one-time relaxation of two years in the upper age limit for people appearing for competitive examinations for Trained Graduate Teacher (TGT) and Junior Basic Training (JBT) posts. Additionally, one seat will be reserved for orphans in all courses in government, government-aided, and private technical institutions.
