Public expenditure in Himachal Pradesh from 1995 to 2013 was analyzed to understand how it impacts economic growth, employment, poverty, and income distribution. The study found that non-plan expenditure exceeded plan expenditure, with a focus on current revenue expenditure like social services and grants-in-aid. Capital expenditure mainly went towards social and economic services. The analysis also revealed a significant burden of pension liabilities on the Himachal Pradesh government.