Himachal Assembly in session: House erupts over grant cut

The proposed discontinuation of the Revenue Deficit Grant (RDG) to Himachal Pradesh triggered a stormy debate in the Vidhan Sabha, with Chief Minister Sukhvinder Singh Sukhu and Leader of Opposition Jai Ram Thakur engaging in sharp exchanges over the state’s mounting debt and the Centre’s fiscal stance.

The debate quickly escalated into a face-off over financial management, with both leaders accusing each other’s governments of pushing Himachal into a debt trap exceeding Rs 1 lakh crore. Thakur defended the previous BJP regime, asserting that it had repaid 95 per cent of loans raised during its tenure, compared to only 60 per cent under Congress governments. He also accused the Congress of criticising Prime Minister Narendra Modi despite the Centre providing RDG during BJP rule.

Deputy Chief Minister Mukesh Agnihotri countered by challenging the BJP to clarify whether it would support the state’s demand for continuation of RDG. He alleged that every visit by the LoP to Delhi was aimed at stalling financial assistance to Himachal. Referring to statements suggesting early Assembly elections following the RDG decision, Agnihotri said such remarks exposed the Opposition’s political intent.

He argued that the discontinuation of GST compensation earlier and now the move to stop RDG signalled a broader trend of weakening smaller states. According to him, larger states had prevailed in influencing the decision, leaving hill states like Himachal to bear the brunt. Calling the potential loss of Rs 55,000 crore a grave setback, he urged all parties to rise above political divides and unite to safeguard the state’s financial rights.

Congress legislators accused the Centre of financially “strangulating” Himachal and imposing borrowing caps that constrained development. Fatehpur MLA Bhawani Pathania warned that a recent trade agreement would adversely affect apple growers across 22 Assembly segments.

On the other hand, Nachan MLA Vinod Kumar cited figures claiming that Himachal had received Rs 89,254 crore from the Modi-led government over the past 12 years, compared to Rs 20,956 crore during 40 years of Congress rule at the Centre.

Several other members, including ministers and MLAs from both sides, participated in the heated discussion, underscoring the political and fiscal stakes surrounding RDG and its implications for Himachal’s future.