Himachal CM Sukhu meets Union Finance Minister, seeks special central assistance for 2026-27

According to the Himachal CMO, the CM apprised the Union Finance Minister that discontinuation of Revenue Deficit Grant ( RDG ) will have a far-reaching adverse impact on the financial health of the state and added that Himachal Pradesh cannot be compared to other states whose RDG has been discontinued.

CM Sukhu said that RDG contribution for the state was about 12.7 percent which was the second highest after Nagaland.

"Big states can withstand the discontinuation, but the economy of Himachal Pradesh cannot. Assessing all states on a single yardstick is neither healthy nor transparent," CM Sukhu said.

He termed the discontinuation as "undermining the spirit of cooperative federalism" and referred to Article 275(1) of the Constitution, which provides grants to states unable to bridge the gap between revenue receipts and expenditure. He added that this was the first time a Finance Commission had completely ignored the developmental needs of small hill states.

The Chief Minister also briefed the Finance Minister that since last two-three years, several measures were taken to reduce expenditure, no off-budget borrowing was resorted to and about Rs. 600 crore annually was raised through various cesses.

CM Sukhu added that the state suffered revenue losses due to GST and added that despite raising tax rates wherever feasible and rationalising subsidies, the gap in revenue deficit cannot be bridged.

Sukhu requested the Union Finance Minister to constitute a committee to properly assess the economies of hill states and recommend corrective measures.

Nirmala Sitharaman assured sympathetic consideration for the demands of the state. Principal Advisor to Chief Minister Ram Subhag Singh and Principal Secretary Finance Devesh Kumar accompanied the Chief Minister. (ANI)