World Bank2012-06-082012-06-082007https://hdl.handle.net/10986/7572This Economic Report is the first by the World Bank on the economy of Himachal Pradesh (HP), and the first on a hill state in India. HP is a unique state in many respects-most importantly because of the enormous success it has achieved over the past three decades, despite severe structural disadvantages of relative remoteness, environmental fragility, and a difficult hill terrain, characteristic of Himalayan states in India. The study sets out to document, first, the remarkable success that the state has achieved in terms of sustained growth and human development, and the underlying reasons in terms of supportive policies and social cohesion. In this respect, HP makes an important contribution to lessons of success for the other nine Himalayan hill states in India. The second, and more extensive part of the Report, is forward-looking. It describes how it might be possible to build on the past success that HP has achieved, and, at the same time, address some crucial economic and social transitions that will be essential for the state to firmly secure its future: (i) a sustained increase in income levels along with an enabling environment for the private sector; (ii) the creation of suitable jobs based on enhanced productivity and skill s of its young labor force that can shift from public to private sector employment; and (iii) the utilization of natural resources like hydropower, forests, and water resources wisely and well. There is every reason to be confident that HP can meet these challenges. The state's past enviable track record is testimony to the ability of its people and leadership to forge a social consensus and compact necessary to achieve such goals. The Report seeks to provide an analysis of HP's current economic situation, and to lay out a menu of reform options that can help build on HP's considerable strengths and opportunities, and address some of the main challenges ahead.en-USCC BY 3.0 IGOACCOUNTINGAIRBENEFICIARYBUDGET FORMULATIONBUDGET PROCESSBUDGETINGCABINETCAPACITY BUILDINGCAPITAL INVESTMENTCAPITAL OUTLAYCARSCHEMICAL FERTILIZERSCOMPARATIVE ADVANTAGECONFEDERATIONCONSUMPTION EXPENDITURECONTINGENT LIABILITIESCONVICTIONCORPORATIONCROP INSURANCECURRENCYDEBTDEBT CRISISDEBT SERVICEDEBT STOCKDECENTRALIZATIONDECISION MAKINGDEEDDEVELOPING COUNTRIESDIVIDENDSDRIVERSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC SITUATIONECONOMIC VALUEECONOMICSELECTRICITYENABLING ENVIRONMENTENVIRONMENTALENVIRONMENTAL DEGRADATIONENVIRONMENTAL ISSUESENVIRONMENTAL MANAGEMENTENVIRONMENTAL PROBLEMSENVIRONMENTAL RESOURCESEQUILIBRIUMEVASIONEXCISE DUTYEXCISE TAXESEXPENDITURESEXPLOITATIONFINANCESFINANCIAL FLOWSFINANCIAL MANAGEMENTFISCAL BURDENFISCAL CONSTRAINTSFISCAL DEFICITFISCAL DEFICITSFISCAL POLICYFISCAL RESPONSIBILITYFIXED ASSETSFLAT RATEFORESTRYFRAUDFRAUD RISKFUELGDPGOVERNMENT GRANTSGOVERNMENT GUARANTEESGOVERNMENT POLICIESGROSS DOMESTIC PRODUCTHOUSEHOLD INCOMESHUMAN DEVELOPMENTHUMAN RESOURCEHUMAN RESOURCESINCOMEINCOME LEVELSINFORMATION SYSTEMINFORMATION TECHNOLOGYINFRASTRUCTURAL CONSTRAINTSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE INVESTMENTSINSTITUTIONAL CAPACITYINSURANCEINTEREST PAYMENTSINTERNAL AUDITINVESTMENT CLIMATELABOR FORCELABOR MARKETLEVEL OF DEBTLEVIESLEVYLICENSESLIVING STANDARDSMARKET ACCESSMARKET INFORMATIONMOTOR VEHICLEMOTOR VEHICLESMUNICIPALITIESNATURAL RESOURCE BASENATURAL RESOURCESNONTAX REVENUEO&MPASSENGERSPENSIONPENSIONSPERSONAL VEHICLESPOLICEPOLICY INSTRUMENTSPOLITICAL ECONOMYPOLITICAL ENVIRONMENTPOLITICAL PARTYPOLLUTIONPOLLUTION CONTROLPOPULATION DENSITYPORTFOLIOSPOST OFFICEPOVERTY LINEPRESENT VALUEPRIVATE INVESTMENTPRIVATE PARTIESPRIVATE SECTORPRIVATE SECTOR PARTICIPATIONPRODUCTIVITYPROVISIONSPUBLICPUBLIC CONSULTATIONPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC PARTICIPATIONPUBLIC PRIVATE PARTNERSHIPSPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SPENDINGPUBLIC WORKSREAL ECONOMIC GROWTHREAL PROPERTYREGISTRATION FEEREGISTRATION FEESREPAYMENTRESOURCE USERETURNSREVENUE COLLECTIONREVENUE PERFORMANCERIVER BASINSROADROAD TAXROAD TOLLSROAD TRANSPORTROADSROUTESSOCIAL INFRASTRUCTURESOFT BUDGET CONSTRAINTSOIL DEGRADATIONSTAMP DUTIESSTAMP DUTYSTATE OWNED ENTERPRISESSTREAMSSUSTAINABLE DEVELOPMENTSUSTAINABLE GROWTHTAXTAX COLLECTIONTAX EXEMPTIONSTAX INCENTIVESTAX RATETAX RATESTAX REGIMETAX REVENUETAX REVENUESTAX SYSTEMTAX TAKETAXATIONTIMBERTRADINGTRANSPARENCYTRANSPORTTREASURYTRUEUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESURBAN INFRASTRUCTUREURBAN MANAGEMENTURBANIZATIONUSER CHARGESVALUATIONWATERSHEDWEALTHWorld Bank10.1596/7572