Shimla: Expressing disappointment over the Union Budget 2026-27, Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu on Sunday described it as anti-poor and anti-farmer. He stated that the budget overlooks the interests of important sections of society.
The Chief Minister called the budget unequal and said that Finance Minister Nirmala Sitharaman completely ignored the concerns and priorities of the state. He also expressed apprehension regarding the recently presented report of the 16th Finance Commission (FC-XVI) for 2026-31.
Despite repeated requests, detailed memorandums, and technical presentations, Sukhu voiced his disappointment over the commission’s failure to provide meaningful Revenue Deficit Grants (RDG) to Himachal Pradesh. He highlighted that the Finance Commission has not recommended RDG for smaller states including Himachal Pradesh, terming this a highly disappointing and unjust decision that hurts public sentiment.
In a statement, the Chief Minister pointed out that Article 275(1) of the Constitution mandates the central government to provide state-specific grants, known as RDG. From 1952 up to the 15th Finance Commission, these grants were regularly provided by the Centre. However, for the first time, the 16th Finance Commission has discontinued this grant.
He noted that under the 15th Finance Commission, nearly ₹37,000 crore was given as revenue deficit grants. Sukhu added that after the completion of the 14th Finance Commission, during a delay in submitting the 15th Finance Commission’s report, ₹11,431 crore was still provided based on an interim report during the previous BJP government’s tenure.
The Chief Minister remarked, “It is unfortunate that structural financial challenges have been overlooked, including nearly 67 percent dense forest and ecological cover, the high per capita cost of service delivery in hilly areas, and repeated natural disasters causing losses exceeding ₹15,000 crore in recent years.”
Himachal Pradesh had hoped for targeted support addressing hill-specific priorities such as hydropower development, eco-tourism, road and rail connectivity, and compensation for revenue losses due to GST implementation.
Sukhu warned that the absence of adequate RDG will limit the state’s ability to provide essential public services, maintain financial stability, and invest in future development. This could force the government to make difficult choices between service delivery and rising debt.
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