Punjab Newsline,Himachal :
Chief Minister calls for united stand to protect Himachal Pradesh’s financial interests, says RDG cut will severely impact State economy
Chief Minister Thakur Sukhvinder Singh Sukhu on Saturday asserted that the abolition of the Revenue Deficit Grant (RDG) is not merely an issue of the government, but a serious matter concerning the constitutional and financial rights of the people of Himachal Pradesh. Addressing a high-level gathering after a detailed presentation by the Finance Department on the State’s financial position, the Chief Minister warned that the recommendations of the 16th Finance Commission could have long-term consequences for the State’s economy and future budgets.
The presentation was attended by Deputy Chief Minister Mukesh Agnihotri, Speaker of the H.P. Vidhan Sabha Kuldeep Pathania, Cabinet Ministers, MLAs, senior officers, heads of departments and members of the State media. CM Sukhu expressed disappointment over the absence of BJP MLAs, stating that they should have attended the presentation to better understand the fiscal distress faced by the State.
The Chief Minister said that RDG has been scrapped for 17 States, but Himachal Pradesh stands among the worst affected, as 12.7 percent of its budget is dependent on RDG—the second highest in the country. He said the State is ready to take up the issue collectively and even meet the Prime Minister along with BJP MPs and MLAs, stressing that once RDG is withdrawn, reclaiming the people’s rights would be extremely difficult.
Highlighting the post-GST scenario, CM Sukhu said that the State’s tax collection growth has dropped to around 8 percent from 13–14 percent earlier. Being a producer State, Himachal Pradesh has suffered under the consumer-based GST regime, further limiting its revenue-generating capacity. He also demanded 50 percent royalty on fully repaid power projects, the return of power projects after 40 years of commissioning, release of ₹4,500 crore BBMB arrears pending since 2012, and the return of the Shanan Power Project.
Principal Secretary Finance Devesh Kumar explained that RDG is a constitutional provision under Article 275(1) and had been a crucial support for the State till the 15th Finance Commission. He pointed out that without RDG, the State faces a resource gap of nearly ₹6,000 crore for FY 2026–27, even before accounting for development works and pending liabilities.
Concluding, CM Sukhu reaffirmed the government’s commitment to welfare schemes, resource mobilization without burdening the common man, and continued fight for Himachal Pradesh’s legitimate financial rights.