HP Governor skips cut in grant, ends 50-page address in 3 minutes

The three-day Budget session of the Himachal Pradesh Vidhan Sabha began on a politically charged note on Monday, with Governor Shiv Pratap Shukla concluding his 50-page address in under three minutes after declining to read key portions related to the Revenue Deficit Grant (RDG).

Soon after commencing his speech, the Governor said paragraphs three to 16 contained remarks concerning a constitutional body and, therefore, would not be read out. The skipped sections primarily dealt with the recommendation of the 16th Finance Commission to discontinue RDG to the state, an issue that has triggered intense political debate in recent weeks.

Limiting himself to the opening paragraphs, the Governor said the session had been convened to pass Supplementary Demands for Grants for 2025-26, present the Budget for 2026-27 and transact important legislative business.

Expressing confidence in the House, he said members would uphold the tradition of constructive deliberation on the government policies.

The address, prepared by the state government and approved by the Cabinet, contained detailed references to the constitutional provision under Article 275(1), which enables grants to states facing a gap between revenue receipts and expenditure. From the First Finance Commission in 1952 up to the 15th Finance Commission (2020-25), Himachal Pradesh has consistently received RDG support.

The written speech described the discontinuation of RDG by the 16th Finance Commission as a matter of serious concern, particularly for small and hill states. Of the 17 states that had been receiving RDG, several are special category states where such grants form a substantial share of annual budgets.

The omitted portion further underlined that for a hilly and border state like Himachal, limited revenue-generation capacity due to geographical and resource constraints makes Central assistance critical. It cautioned that ending RDG could strain finances needed for development projects, social welfare initiatives and disaster management.

By avoiding the contentious references, the Governor steered clear of direct engagement with an issue that is expected to dominate debate during the Budget session, setting the stage for sharp exchanges between the treasury benches and the Opposition.