Shimla, February 1
Expressing disappointment over the Union Budget 2026-27, Chief Minister Sukhvinder Singh Sukhu described it as an anti-poor and anti-farmer budget and stated that it ignores interests of key sections of the society. Describing it as inequitable, the Chief Minister stated that Finance Minister, Nirmala Sitharaman has completely overlooked the concerns and priorities of the Himachal Pradesh.
Sukhu raised serious concerns regarding the recently tabled 16th Finance Commission (FC-XVI) Report for the period 2026-31. The Chief Minister voiced strong disappointment over the Commission’s failure to provide meaningful Revenue Deficit Grants (RDGs) for the state despite repeated representations, detailed memoranda and technical submissions. Besides, the Finance Commission has not recommended Revenue Deficit Grants (RDGs) for small states, including Himachal Pradesh, which he termed as deeply disappointing decision and termed it as injustice, hurting the sentiments of the people.
The Chief Minister said that Article 275(1) of the Constitution provides for state-specific grants from the Union Government, also known as Revenue Deficit Grants (RDG). From 1952 up to the Fifteenth Finance Commission, these grants were regularly provided by the Centre to the states. However, for the first time, the Sixteenth Finance Commission has discontinued this grant,
CM said that under the Fifteenth Finance Commission, Revenue Deficit Grants amounting to approximately Rs. 37,000 crore were provided. He further noted that after the completion of the Fourteenth Finance Commission, when there was a delay in the submission of the Fifteenth Finance Commission’s report, assistance of Rs. 11,431 crore was still provided on the basis of an interim report during the tenure of the previous BJP government.
The Chief Minister stated that the budget has once again failed to respond to the critical issues confronting the nation, particularly unemployment, poverty and escalating prices. He said the apple growers of Himachal Pradesh, who make a vital contribution to State’s economy of around Rs. 5000 crore and support thousands of families, have received no recognition in the Union Budget.
“It does not contain any substantial initiatives to tackle the persistent challenges in the agricultural sector, such as inadequate support prices and insufficient investment in advanced farming practices, infrastructure and modernization. Himachal Pradesh, like several other states, continues to face difficulties as the budget appears to favour wealthy over common Indian citizens,” Sukhu said.
Sukhu further said the budget has overlooked the long-pending issue of expanding the rail network in Himachal Pradesh, including no allocations have been made for railway expansion in the state, including key projects such as the Bhanupali-Bilaspur and Baddi-Chandigarh lines. He stressed upon to increase loan limit to 4 per cent instead of the present 3 per cent, but the demand has been overlooked, he remarked.
“The allocation for interest-free loans to states, fixed at Rs. 1.5 lakh crore has not been enhanced and the stringent conditions attached to it, do not support smaller states like Himachal Pradesh due to cost-related disadvantages. The discontinuation of GST compensation has resulted in an annual revenue loss for the state,” CM said.
“As a special category hill state, Himachal Pradesh faces unique challenges due to its difficult terrain, fragile ecology, frequent natural disasters and a limited own-revenue base. In this context, stronger fiscal support, particularly a clear framework for continued RDGs beyond the current Finance Commission period is critical for maintaining fiscal balance, delivering essential public services and sustaining social welfare commitments”, Sukhu pointed out.
