Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu expressed concern over the long-term effects of the 16th Finance Commission’s report on the state’s economy, particularly impacting the upcoming 2026-27 Budget. He highlighted the significance of the abolition of the Revenue Deficit Grant (RDG) by the Finance Department during a presentation on the state’s financial status.
Sukhu emphasized that the removal of RDG was not just a governmental issue but a matter of the people’s rights in the state. He mentioned readiness to engage with the Prime Minister in Delhi alongside BJP MPs and MLAs to address this concern, fearing challenges in reclaiming people’s rights without RDG provisions.
The Chief Minister noted that Himachal Pradesh was severely affected by the RDG elimination, as 12.7% of the state budget relied on it, ranking second highest in the country. He also highlighted the adverse impact of the Goods and Services Tax (GST) implementation on the state’s economy, particularly affecting a producer state like Himachal Pradesh due to its consumer-based tax structure.
Sukhu stressed the importance of fighting for the state’s people, urging the Central government to ensure a 50% royalty on power projects and transfer all projects older than 40 years back to the state. He also mentioned ongoing legal battles to recover arrears and projects like the Bhakra Beas Management Board (BBMB) and the Shanan Power Project, underscoring the government’s commitment to resource mobilization.
The Chief Minister reassured the state’s residents of the government’s dedication to implementing welfare schemes, enhancing state resources, and advocating for their legitimate rights.
