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Sukhu, Jai Ram spar over reducing revenue deficit grant, mounting debt

Assembly in Session
Chief Minister Sukhvinder Singh Sukhu takes part in the debate over the Budget proposals in the Assembly on Tuesday.
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Chief Minister Sukhvinder Singh Sukhu and Leader of the Opposition Jai Ram Thakur today sparred in the Vidhan Sabha over the issue of reducing revenue deficit grant (RDG), mounting debt and declining capital expenditure adversely impacting development.

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During the debate on the Budget proposals for 2025-26, Sukhu said that the reducing RDG and the Goods and Services Tax (GST) compensation coming to an end in June 2022 had compounded the financial woes of Himachal. “The 14th and 15th Finance Commissions had made liberal allocations, and as a result a huge amount up to Rs 40,000 crore was received as RDG for five years,” he added.

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“During 2025-26, the RDG will reduce to Rs 3,257 crore, which is bound to impact the size of the Budget and capital expenditure,” he added.

Sukhu said, “The previous BJP government had received Rs 3,200 crore and Rs 1,600 crore as GST compensation. If you were a good Finance Minister, you should have reduced the debt burden rather than spending that money on distributing freebies to win elections.” He added that to make matters worse, the Central Government put a limit on the raising of loan and capped external funding to Rs 2,900 crore after the restoration of the old pension scheme (OPS).

Thakur hit back at Sukhu and said that from day one, the Chief Minister was blaming the previous BJP government for raising loans and the Central Government for not providing any financial assistance. “In1993, there was a negligible debt burden on Himachal but unnecessary loans were raised and since then there has been no looking back. In fact, no government can now function without taking loans,” he added.

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Thakur said, “Did your government give us a no dues certificate when we came to power? We accepted your liabilities and did not cry hoarse about loans like you had been doing from day one.”

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