Himachal set to lose Rs 50,000-crore grant, Sukhu slams Centre

Calling Sunday a “black day” in Himachal Pradesh’s history, Chief Minister Sukhvinder Singh Sukhu on Sunday said the Centre’s decision to discontinue the Revenue Deficit Grant (RDG) for special-category hill states would deal a severe blow to the state’s finances.

“The 16th Finance Commission has discontinued the RDG. It is a massive blow to the people of Himachal. They are deeply hurt,” Sukhu said, terming the move blatant injustice. He said the matter would be discussed in the Cabinet and all options, including legal recourse, would be explored.

The Chief Minister said Himachal had received around Rs 48,000 crore as RDG over the past five years under the 15th Finance Commission and was expecting nearly Rs 50,000 crore in the next cycle. “I met the Finance Commission and the Finance Minister several times and requested that the RDG be spread uniformly over five years. I had no indication it would be stopped altogether,” he said.

Sukhu added that the Centre had also rejected the state’s demand to raise its borrowing limit from three per cent to four per cent of the Gross State Domestic Product.

‘RDG is not charity’

Referring to Article 275(1) of the Constitution, Sukhu said RDG was a state-specific entitlement extended consistently since 1952. “The RDG is not charity. Himachal acts as the lungs of northern India through its forests, provides water to neighbouring states and resources for power generation by Central companies. Receiving nothing in return is total injustice,” he said.

He cautioned that the absence of RDG would constrain essential public services, strain fiscal sustainability and force hard choices between service delivery and higher indebtedness.

Budget disappointing: CM

Criticising the Union Budget, Sukhu termed it anti-poor and anti-farmer, alleging neglect of unemployment, inflation and rural distress. He said apple growers had been ignored, the rail expansion demand overlooked and tourism infrastructure left unaddressed. “While a Buddhist Circuit has been proposed for the Northeast, Himachal’s Buddhist Circuit should also have been included,” he said.

Political reactions

“The Union Budget is deeply disappointing for Himachal and weakens India’s federal structure. Ending the revenue deficit grant betrays hill states, causing a Rs 50,000-crore loss. The Centre must reconsider and restore Himachal’s rightful share.” — Mukesh Agnihotri, Deputy Chief Minister

“Neglect of Himachal in the Union Budget is unfortunate. Ending the revenue deficit grant despite repeated disaster losses worsens the state’s fragile finances. Reduced Central support is unjustified when the situation demands stronger assistance.” — Vikramaditya Singh, Public Works and Urban Development Minister

“With no Himachal-specific announcement, the Budget reflects total neglect. Absence of disaster relief exposes the Centre’s insensitivity and suggests the state has no place in the national development roadmap.” — Vinay Kumar, President, HPCC

“This historic Budget advances the vision of a developed India and fulfils youth aspirations. Guided by ‘Reform Over Rhetoric’, it prioritises growth, inclusion and opportunity. Khelo India, AVGC labs and skill initiatives will empower young Indians.” — Anurag Thakur, MP, Hamirpur

“This Budget supports youth dreams and the creative economy. AVGC labs in schools and colleges, design education and digital careers will transform India into a global creative hub, with Himachal’s youth playing a leading role.” — Kangana Ranaut, MP, Mandi